USD strengthened against other major currencies in the European session on Monday as investors responded to the latest threat of President-elect Trump while waiting for a series of crucial U.S. economic reports due later this week.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, jumped 0.42% from the previous close to 106.18.
The U.S. currency received a boost after Donald Trump threatened to impose 100% tariffs on exports from BRICS countries if they move away from USD as world reserve currency.
In the coming days, inventors will receive ISM’s surveys of business activity in the U.S. manufacturing and services sector, as well as a batch of jobs reports, the most important of which will be Friday's employment situation report for November.
These releases are expected to determine whether the Federal Reserve decreases its rates again at its December 17-18 meeting.
According to CME FedWatch, markets now see a 65.4% probability that the Fed will cut its rates by 25 basis points this month and a 34.6% probability that it will skip a move.