Dollar hits one-month high before US jobs data

Shafaq News- WashingtonThe dollar edged up on Friday as markets awaited a U.S. jobsreport and braced for an approaching Supreme Court decision on President DonaldTrump's use of emergency tariff powers.The dollar index measuring the U.S. currency against abasket of six peers was up 0.16% at 99.04, to its highest in a month.The looming U.S. non-farm December payrolls report willdispel much of the data fog resulting from a recent government shutdown, butanalysts said nuances in the figures may do little to clarify the path forinterest rates."Expectations have grown that today’s U.S. jobs reportwill be decent enough to keep the Fed put for longer, and that the SupremeCourt will rule against Trump’s tariffs," said ING currency strategistFrancesco Pesole."The combination of those would, in our view, provemodestly USD positive."Thursday's weekly jobless claims data showed a marginalincrease in applications for unemployment benefits.Fed funds futures are pricing an implied probability of 86%that the central bank holds interest rates at its next two-day meet on January27 and 28, up from 68% a month ago, the CME Group's FedWatch tool shows.The U.S. Supreme Court could issue a ruling later in the daydetermining whether Trump can invoke the International Emergency EconomicPowers Act (IEEPA) to impose tariffs without the approval of Congress.That risks upending U.S. trade policy and throwing intodisarray months of negotiations with partner nations.If the decision goes against Trump, company executives,customs brokers and trade lawyers are girding for a possible fight to securerefunds of about $150 billion from the U.S. government for duties already paid.EURO DOWN AS GERMAN EXPORTS DECLINEThe euro edged 0.12% lower at $1.1644, after data showedGerman exports unexpectedly fell in November as shipments to other EuropeanUnion countries and the U.S. dropped, while industrial output rose despiteexpectations for a decline.Against the yen, the dollar advanced for a fourth day,climbing to its highest since December 22.It was last up 0.47% to 157.61, after data showed Japanesehousehold spending unexpectedly grew in November from a year earlier,indicating that consumption accelerated before the Bank of Japan lifted itspolicy rate to a 30-year high in December.Governor Kazuo Ueda has said the BOJ would continue to raiseborrowing costs if economic and price developments move in line with itsforecasts.Against the Chinese yuan trading offshore in Hong Kong, thedollar was holding steady at 6.9808 yuan, little changed after China's annualconsumer price inflation accelerated in December to its highest in almost threeyears.However, the full-year rate slumped to the lowest in 16years and producer deflation persisted, boosting market expectations for morestimulus to shore up soft demand.Elsewhere, the pound fell 0.2% to $1.3415, while theAustralian and New Zealand dollars were also on the back foot with the Aussiedown 0.3% at $0.6677. The kiwi dollar slipped 0.45% to $0.5727, down for thefourth consecutive session to its lowest point since early December.Bitcoin was down 1% at $90,172.65, while ether gave up 0.96%to stand at $3,085.43.(Reuters)Only the headline is edited by Shafaq News.