Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Up, Gains Against Yen and Euro Over Strengthening U.S. Economic Recovery

ForexMar 28, 2021 10:01PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – The dollar was up on Monday morning in Asia, hovering near record gains against the euro and yen. Investors turned to the dollar thanks to the previous week’s U.S. economic data and the quickening pace of the U.S. COVID-19 vaccine program.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.10% to 92.812 by 9:54 PM ET (1:54 AM GMT).

The USD/JPY pair inched up 0.01% to 109.66. The yen was not far from strong resistance and Friday's 10-month low of 109.85 against the dollar, as it is sensitive to gaps in returns on U.S. and Japanese government debt.

The U.S. economic recovery has seen a 76-basis-point rise in 10-year Treasury yields in 2021, the biggest since February 2020. The rise drew in Japanese investors, in turn pushing the yen down near 6% in the quarter to date.

The AUD/USD pair inched down 0.08% to 0.7629 and the USD/NZD pair inched down 0.10% to 0.6984.

The USD/CNY pair inched up 0.03% to 6.5433, with Chinese manufacturing and non-manufacturing purchasing managers index (PMI) figures due later in the week.

The GBP/USD pair inched down 0.06% to 1.3777.

The euro traded at $1.1788, close to the previous week’s four-and-a-half-month low, and was headed for its worst month since mid-2019. Supply issues and safety concerns hampering Europe’s COVID-19 vaccine rollout, alongside rising case numbers, led investors to remain heavily long euros, according to positioning data.

Meanwhile, the U.S. has doubled its vaccination goal after meeting its 100-million-shots goal more than a month ahead of schedule.

"The U.S. is also being helped on its own by some pretty good economic data, the fantastic rollout of vaccines, good pace of vaccination and (positive) stock markets... the domestic economy is doing better than expected and that is likely to be the case for the next few months, so that might hold the U.S. dollar up and that's what's caused the AUD, NZD and emerging-market currencies to pull back in March,” Westpac currency analyst Imre Speizer told Reuters.

Investors will also be watching U.S. jobless claims data, due later in the week, after the number of claims fell to a one-year low during the previous week.

"The distribution of forecasts range from 460,000 to 1 million (jobs), where the whisper number sits at the top end of the range... one million jobs would set the reflation trades alight, with the S&P500 outperforming, led by cyclicals and cause a solid sell-off in bond yields taking USD/JPY and USD/CHF higher," Pepperstone head of research Chris Weston told Reuters.

"The euro should push through the previous week’s lows of 1.1761 and towards 1.1690," Weston added.

Dollar Up, Gains Against Yen and Euro Over Strengthening U.S. Economic Recovery
 

Related Articles

Dollar resumes downtrend after worst week since May
Dollar resumes downtrend after worst week since May By Reuters - Aug 02, 2021 1

By Sujata Rao LONDON (Reuters) - The dollar lurched lower on Monday, back towards the one-month lows hit last week when it became clear the Fed was in no hurry to tighten policy...

Dollar Weakens Ahead of Key Payrolls Data
Dollar Weakens Ahead of Key Payrolls Data By Investing.com - Aug 02, 2021

By Peter Nurse Investing.com - The dollar edged lower Monday, just above a one-month low, in tight trading ranges ahead of the release of key U.S. employment data later in the week...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email