The US Dollar Index soars above 106.50 on Monday.
DXY surges higher driven by Trump’s warnings on tariffs against BRICS nations
Strong November ISM manufacturing PMI helps the USD.
The US Dollar Index (DXY), which measures the value of the USD against a basket of currencies, has surged above the 106.50 level on Monday, the first trading session in December. This move higher has been driven by several factors, including news that US President-elect Donald Trump favors imposing tariffs on goods from Brazil, Russia, India, China and South Africa and other nations interested in joining a future BRICS currency. Strong PMI data from November from the ISM has also helped the DXY get a boost.

Daily digest market movers: US Dollar gains nearly 1% at the start of the week

Pair bottomed at a low of 0.8375 and then recovered above 0.8400 but holds daily losses.
US August NFPs came in lower than expected, following this weak labor market data trend.
Investors might bet on a bigger cut in September from the Fed.
On Friday, the USD/CHF fell to a daily low of 0.8375 and then recovered back above 0.8400. The upside, however, is limited as the US reported weak labor market figures.

The US Dollar’s appeal diminished after the release of a lower-than-expected NFP report for August, which showed the creation of 142,000 new jobs, falling short of the 160,000 forecast but surpassing July’s revised figure of 89,000. The Unemployment Rate decreased as anticipated, moving from 4.3% to 4.2%. Additionally, Average Hourly Earnings increased by 3.8%

In Friday’s session, the USD/CHF recovered surging above the 0.8965 mark. Strong Nonfarm Payroll data from the US propelled the USD across the board. US Treasury yields increased while the odds of a cut in September by the Fed slightly declined.

USD/CHF took a dip in Tuesday’s session and fell to 0.9110. Despite the Consumer Confidence index in the US and Housing prices exceeding expectations, the USD remains weak. The Federal Reserve maintains a cautious stance, asking the market for patience, which keeps the odds for rate cuts in June or July low.