Dollar Strengthens, Tariff Ruling & NFP Lead
The US dollar strengthened slightly on Friday, as markets held their breath ahead of the Nonfarm Payrolls (NFP) release and awaited a potential US Supreme Court ruling on President Donald Trump's emergency tariff powers.
In the European session, the dollar index (DXY) rose to 98.657—nearing its highest level in a month.
Market participants are now focused on the December NFP report, which will be a key indicator of the dollar's mood and the direction of the Fed's interest rates. Consensus estimates an increase of around 70,000 jobs, with the unemployment rate projected to fall to 4.5%.
The interest rate market is also still leaning toward a "hold on hold" scenario. Fed funds futures indicate an approximately 86% chance of the Fed holding rates at its January 27-28 meeting.
In addition to the employment data, the market is also bracing for a Supreme Court ruling on whether Trump can use the IEEPA to impose tariffs without Congressional approval. If the ruling reverses, companies could scramble to recover import duties estimated at US$150 billion.
In major currency markets, the euro was flat at $1.1655. The pound sterling was also relatively stable at $1.3436.
Against the yen, the dollar continued to strengthen: USD/JPY rose to 157.29. Meanwhile, against the offshore yuan, the dollar was stable at 6.9797.
In commodity currencies, the Australian dollar was at $0.6697, while the New Zealand dollar weakened slightly to $0.5742.
Source: Newsmaker.id
