07:46 AM EST, 01/21/2025 (MT Newswires) -- The US dollar rose against its major trading partners early Tuesday after declining during most of the Monday Martin Luther King Jr. holiday as foreign exchange markets braced for talk of tariffs during President Donald Trump's many appearances throughout the day that took a backseat to other issues.

The Philadelphia Federal Reserve is due to release its nonmanufacturing reading for January at 8:30 am ET Tuesday to start a relatively light data week. On Tuesday, the US Treasury will begin taking extraordinary steps to avoid breaching the debt limit, a process set in motion by former US Treasury Secretary Janet Yellen on Jan. 17. Yellen did not say how long these steps will prevent the debt limit from being breached.

Trump's nominee for Treasury secretary, Scott Bessent, has not yet been confirmed.

Highlights Wednesday include weekly mortgage applications and Redbook same-same store sales and leading indicators data for December.

Thursday's key data are weekly jobless claims, natural gas stocks and crude oil stocks inventory and the Kansas City Fed's manufacturing reading for January.

The week ends with the busiest economic release schedule Friday. The S&P Global flash estimates for manufacturing and services conditions for January, the final University of Michigan consumer sentiment reading for January, existing home sales data for December and the Kansas City Fed's services reading for January are all due Friday.

The Federal Open Market Committee is in its 'quiet period' ahead of the Jan. 28-29 meeting.

A quick summary of foreign exchange activity heading into Tuesday:

EUR/USD fell to 1.0352 from 1.0417 at the Monday close but was above a level of 1.0326 at the same time Monday morning. Eurozone economic sentiment improved in January according to data released earlier Tuesday. The next European Central Bank meeting is scheduled for Jan. 30.

GBP/USD fell to 1.2237 from 1.2329 at the Monday close but remained above a level of 1.2205 at the same time Monday morning. UK employment rose as expected in November while average earnings growth accelerated, and the unemployment rate ticked up. The next Bank of England meeting is scheduled for Feb. 6.

USD/JPY rose to 155.8517 from 155.6171 at the Monday close but was below a level of 156.3869 at the same time Monday morning. There were no Japanese data released overnight. The next Bank of Japan meeting is scheduled for Jan. 23-24.

USD/CAD rose to 1.4443 from 1.4308 at the Monday close but was below a level of 1.4465 at the same time Monday morning. Canadian consumer price data for December are due to be released at 8:30 am ET. The next Bank of Canada meeting is scheduled for Jan. 29.