The dollar index (DXY00) rose to a new 4-week high today and is up by +0.23%. The dollar found support from today's mixed US payroll report, which showed payrolls rose less than expected but the unemployment rate ticked down and average hourly earnings rose more than expected, hawkish factors that may keep the Fed from cutting interest rates. The dollar added to its gains today after the University of Michigan's US Jan consumer sentiment index rose more than expected.
The dollar also rose today after the Supreme Court deferred on the legality of President Trump's tariffs. The court hasn't said when it will issue its next opinion, but it could schedule more releases in the next two weeks. If the Supreme Court were to strike down Mr. Trump's tariffs, the dollar could come under pressure as the removal of tariff revenue could worsen the US budget deficit.
