USD volatility ahead: Supreme Court tariff ruling set for Friday

USD pairs face potential volatility as the US Supreme Court schedules Friday as a decision day, with markets anticipating a ruling on tariff-related cases. The expedited hearing timeline suggests an imminent decision that could significantly impact trade policy and dollar strength. Traders are positioning defensively across major USD pairs, with implied volatility rising in EUR/USD, USD/JPY, and USD/CNH options markets. The ruling could affect US trade relations and potentially influence Federal Reserve policy considerations if tariffs impact inflation expectations. Technical levels show EUR/USD consolidating near 1.0500, USD/JPY holding above 157.00, while USD/CNH remains sensitive given China trade implications. Market participants should prepare for heightened volatility and potential gaps in USD pairs following the announcement. Risk management strategies including wider stops and reduced position sizes are advisable ahead of this high-impact event.