The reasons for the dollar's rise this week and what are the future forecasts ?

The US dollar rose this week, as well as Treasury bond yields rose yesterday, due to US President Donald Trump's comments that he wants much higher global tariffs than 2.5%, which increased trade tensions.

He said he was considering imposing tariffs on everything from steel and copper to semiconductor chips, imported electronic chips and medicines, in an attempt to persuade producers to make them in the United States.

The deadline of the first of February for the first round of tariffs against Mexico, Canada and China is also approaching, as Trump mentioned earlier.

US economic news on Tuesday was also mixed for the dollar after new orders for capital goods rose more than expected in December, but consumer confidence in January unexpectedly fell to a 4-month low.

The US dollar is still hovering around 108 levels, as the markets are preparing for the upcoming policy decision of the Federal Reserve, as the central bank is widely expected to leave interest rates unchanged.

Market participants will also be watching Fed Chairman Jerome Powell's statements and the central bank's inflation forecasts for hints on the timing of any future interest rate cuts, especially after President Donald Trump's call for an immediate interest rate cut in America and other central banks.

Expectations indicate that the Fed's decision today may not have a significant impact on the markets, as the lack of change was priced in advance by more than 99% for the stability of interest rates, and the focus will be on Jerome Powell's statements regarding the future course of interest rates, especially in light of the new economic and political challenges faced by the United States.

It is also worth noting that the Personal Consumption Expenditures Price Index report will be released next Friday, which is the Fed's preferred measure of inflation.