Commodity News
HeadLine : Dollar downtrend takes breather amid higher yields as jobs report looms
Date : Jan 8 2021
The dollar held on to its biggest gain in more than two months against major peers on Friday as a rise in U.S. yields triggered some unwinding of bearish bets on the currency. The greenback bounced off a nearly three-year low, with traders taking profits against the euro in particular, following a slide in the dollar index of nearly 7% in 2020 and as much as 0.9% in the new year amid expectations of U.S. fiscal stimulus. Democrats won effective control of the Senate this week, giving President-elect Joe Biden scope to push through more spending, which analysts say will be negative for bonds and the dollar. benchmark 10-year Treasury yield topped 1% on Wednesday for the first time since March. "positioning is stretched and the backup in U.S. yields has some investors nervous," TD Securities analysts wrote in a client note. Investors now await U.S. nonfarm payrolls later on Friday for clues on whether significantly more stimulus will be needed to keep the economic recovery alive. The dollar index =USD was little changed at 89.841 in early Asian trading, after dipping to an almost three-year low of 89.206 on Wednesday. It rose more than half a percent on Thursday, but remains on track for a weekly decline. 

Source : Investing
News Archives: