The U.S. dollar moved higher early Friday during Asian trading as investors waited for two big events: a key U.S. jobs report and a Supreme Court decision that could affect trade policy.
The dollar index, which tracks the dollar against six major currencies, rose 0.2% to 98.883, marking its third straight day of gains. Traders are staying cautious ahead of the U.S. non-farm payrolls report for December, which is expected to clear up some of the confusion caused by the recent government shutdown.
That said, analysts warn the jobs data may not give clear signals about where interest rates are headed next. On Thursday, weekly jobless claims showed a small increase, adding to the mixed picture.
Right now, markets strongly believe the Federal Reserve will keep rates unchanged at its January 27–28 meeting. According to the CME FedWatch tool, there’s an 89% chance of no rate hike, up sharply from 68% just a month ago.
Another major focus is the U.S. Supreme Court, which could rule later today on whether President Donald Trump can use emergency powers to impose tariffs without approval from Congress. A ruling in his favor could shake up global trade and undo months of negotiations.
In currency markets, the dollar held steady near 156.89 yen after data showed Japanese household spending rose in November. That suggests stronger consumer activity ahead of the Bank of Japan’s recent interest-rate hike to a 30-year high.
The euro stayed flat at $1.1657, with investors waiting for German trade numbers and eurozone retail sales data. The British pound slipped slightly to $1.3436, while the Australian dollar stayed flat at $0.6698 and the New Zealand dollar dipped to $0.5749.
In crypto markets, prices edged lower. Bitcoin fell 0.2% to about $91,002, and Ethereum dropped 0.4% to around $3,104.
Overall, the dollar is gaining strength, but traders are clearly in wait-and-see mode as major economic data and political decisions hang in the balance.
