US Dollar Index surges past 99.00 as markets await US employment data and tariff decisions

US Dollar Index Continues Upward Momentum

The US Dollar Index (DXY) advanced for the fourth day in a row on Friday, climbing just above the 99.00 mark—a level not seen in the past month. This recent strength in the Greenback is fueled by increased caution in the markets, as attention turns to US President Donald Trump’s tariff policies and the upcoming December employment data.

This week, the US Dollar is poised for a 0.60% increase, bringing its two-week gain to over 1%. Among major global currencies, it has shown the most robust performance so far in 2026. Heightened geopolitical risks worldwide have contributed to a risk-averse environment, further supporting the US currency over the last several weeks.

Focus Returns to Trump’s Tariff Policies

Investors are closely watching as the US Supreme Court deliberates on Friday over President Trump’s authority to use the International Emergency Economic Powers Act of 1977 to impose tariffs on a wide range of US trading partners.

According to Reuters, US corporate legal teams have prepared reimbursement claims totaling approximately $150 billion for import duties already paid, should the court rule against the administration’s actions.

Key Economic Data Ahead: Nonfarm Payrolls

In addition, the US Bureau of Labour Statistics is set to publish the December Nonfarm Payrolls report at 13:30 GMT. Analysts anticipate a moderate increase in employment, with a projected gain of 60,000 jobs for December, following a 64,000 rise in November. The unemployment rate is expected to edge down to 4.5%, compared to 4.6% in the previous month.

Unless the data significantly diverges from expectations, these figures are unlikely to resolve ongoing differences among Federal Reserve policymakers regarding the pace of future monetary easing. Futures markets currently assign a 13% probability to a rate cut after the January 27-28 meeting, while the likelihood of a rate reduction in March has decreased to 36.5%, down from 44% a week earlier.