US dollar strengthens amid tariff discussions and upcoming non-farm payrolls data

IG

The US dollar has gained strength due to tariff discussions initiated by President-Elect Donald Trump.

The dollar's relative strength index (RSI) has returned to its mid-line, indicating potential support from buyers.

Market participants are closely watching the upcoming non-farm payrolls data, which could significantly impact Federal Reserve policy expectations.

Gold prices have faced downward pressure as the US dollar strengthens.

A rebound in gold prices last week was short-lived, and market sentiment appears to be shifting towards profit-taking.

The Hang Seng Index (HSI) is facing downward pressure due to uncertainties surrounding US tariffs.

Despite stronger-than-expected manufacturing Purchasing Managers' Index (PMI) data, market participants remain cautious.

Emerging market currencies are under pressure from renewed tariff threats.

The USD/SGD pair has been trading within a rising channel since October.

The Singapore Blue Chip index has experienced significant growth driven by economic resilience and robust corporate earnings growth.

However, there has been a recent quiet period with waning upward momentum.

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