Markets Steady as Supreme Court Weighs Trump’s Tariff Powers

Legal Challenge Adds Policy Uncertainty
The court’s deliberations mark a potential turning point for Trump’s aggressive trade strategy, which has reshaped global supply chains since he took office. While investors are closely monitoring the proceedings, market reaction remains muted for now as traders await concrete outcomes. Analysts expect a ruling between December and January, which could clarify the limits of executive trade authority and set the tone for global trade policy heading into 2026.

Commodities Find Balance as Dollar Eases
In the commodities space, gold extended its modest gains as investors maintained a cautious stance amid lingering policy uncertainty. Oil prices edged higher after three consecutive sessions of declines, supported by expectations that OPEC+ will remain flexible in managing supply amid concerns of oversupply in early 2026.

Dollar Pulls Back After Five-Day Rally
The US dollar retreated slightly against most major peers after a strong multi-day advance, with the Dollar Spot Index slipping 0.1%. The yen led gains in the Group of 10 currencies after Japanese wage growth data showed faster-than-expected increases in labor cash earnings. The stronger data bolstered expectations that the Bank of Japan could move closer to normalizing monetary policy in the coming months.

Forex Market Outlook: Investors Await Fed and Data Signals
Currency traders are now refocusing on upcoming US labor and inflation data for fresh guidance on the Federal Reserve’s next steps. With recent comments from Fed officials offering mixed signals on the pace of future rate cuts, volatility across major currency pairs could resurface. For now, the dollar’s pause may be temporary, but the yen’s momentum could extend if Japanese policymakers hint at further tightening. Overall, the market remains in a cautious holding pattern, awaiting the next macro catalyst.