FOREX-Dollar advances with US jobs data, Supreme Court ruling in view

"Without stronger demand-side measures, we think overcapacity and the resulting deflationary pressures will persist in the coming years," Capital Economics analysts wrote in a research report. Most other ⁠currencies were little changed in Asian ‌trade, with the euro steady at $1.1655, ahead of the release of German trade data and retail sales figures for the euro zone due later on Friday.

The dollar advanced on Friday in subdued Asian trade, as markets awaited a U.S. jobs report and braced for an approaching Supreme Court decision on President Donald Trump's use of emergency tariff powers. The dollar index of the greenback's ⁠strength against a basket of six currencies was up 0.1% at 98.933, nearing its highest in a month.

The looming U.S. non-farm December payrolls report will dispel much of the data fog resulting from a recent government shutdown, but analysts said nuances in the data may do little to clarify the path for interest rates. "The market is likely to ​show considerable tolerance to a weakish payrolls number," analysts from ING wrote in a research report. "Barring a dramatic data print, the more impactful number is likely to be ‍the unemployment rate."

Thursday's weekly jobless claims data showed a marginal increase 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 January 27 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 day determining whether ⁠Trump can ‌invoke the International Emergency Economic Powers Act (IEEPA) to ⁠impose tariffs without the approval of Congress. That risks upending U.S. trade policy and throwing into disarray months of negotiations with partner nations.

If the decision goes against Trump, company executives, customs brokers and trade ‍lawyers are readying for a possible fight to secure refunds of about $150 billion from the U.S. government for duties already paid. The dollar advanced for a fourth day against the yen, climbing 0.3% ​to 157.29, after data showed Japanese household spending unexpectedly grew in November from a year earlier, indicating that consumption accelerated before the Bank of Japan lifted ⁠its policy rate to a 30-year high in December.

Governor Kazuo Ueda has said the BOJ would continue to raise borrowing costs if economic and price developments move in line with its forecasts. Against the Chinese yuan ⁠trading offshore in Hong Kong , the dollar was holding steady at 6.9797 yuan, little changed after China's annual consumer price inflation accelerated in December to its highest in almost three years.

However, the full-year rate slumped to the lowest in 16 years and producer deflation persisted, boosting market expectations for more stimulus to shore up ⁠soft demand. "Without stronger demand-side measures, we think overcapacity and the resulting deflationary pressures will persist in the coming years," Capital Economics analysts wrote in a research report.

Most other ⁠currencies were little changed in Asian ‌trade, with the euro steady at $1.1655, ahead of the release of German trade data and retail sales figures for the euro zone due later on Friday. The British pound was flat at $1.3436, as was the Australian dollar at $0.6697, while the New Zealand currency nudged ⁠down 0.2% to $0.5742.

Bitcoin was down 0.3% at $90,892.58, while ether gave up 0.2% to stand at $3,111.40.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)