The US dollar has been somewhat strong this week. Treasury yields have slightly risen, and the US Dollar Index has been climbing steadily, currently at 99.091, hitting a nearly one-month high.

The key factor is the December non-farm payroll data. FX strategist Fadi Al Kurdi pointed out that this set of data directly influences the monetary policy direction in 2026—if the data deviates significantly from expectations, both the forex and bond markets should prepare for volatility.

Another point of concern is the Supreme Court's ruling. Whether the Trump administration can impose tariffs under the International Emergency Economic Powers Act is still awaiting a decision. Regardless of the outcome, market participants are closely watching how this will stir the forex market. So, recently, the US Dollar Index has risen by 0.1%, which to some extent reflects the risk pricing brought about by this uncertainty.