The U.S. dollar climbed against its major counterparts in the Asian session on Monday, as U.S. President-elect Joe Biden’s pledge of a massive stimulus for the economy lifted the yield of the U.S. Treasuries.
Longer-term Treasury yields climbed after last week’s dismal jobs report heightened hopes of more financial aid from the Democratic-led U.S. government.
Biden said that “trillions” in U.S. fiscal stimulus measures would be unveiled this week, which includes $2,000 direct payments to Americans and aid for small businesses.
Concerns about the coronavirus infections and the U.S.-China spat also lifted the demand for the dollar.
House Speaker Nancy Pelosi said that she will table a resolution in the chamber urging the removal of President Trump from the office under the 25th Amendment of the Constitution.
Earnings will also be in focus as JP Morgan, Citigroup and Wells Fargo will release fourth-quarter results this week.
Key data due this week include U.S. consumer inflation on Wednesday, initial jobless claims data on Thursday and retail sales, industrial production and consumer sentiment on Friday.
The greenback advanced to 1.2167 against the euro, its highest level since December 23. The greenback is seen finding resistance around the 1.20 level.
The greenback spiked up to near a 2-week high of 0.8890 against the franc and more than a 4-week high of 104.22 versus the yen, from Friday’s closing values of 0.8851 and 103.95, respectively. If the greenback extends rise, 0.90 and 108.00 are likely seen as its next resistance levels against the franc and the yen, respectively.
The U.S. currency hit its strongest level since December 29 versus the pound, at 1.3483. The greenback is likely to challenge resistance around the 1.31 area.
The greenback climbed to 6-day peaks of 0.7693 against the aussie, 0.7182 versus the kiwi and 1.2766 versus the loonie, up from last week’s closing values of 0.7766, 0.7232 and 1.2686, respectively. The greenback is poised to challenge resistance around 0.75 against the aussie, 0.70 versus the kiwi and 1.30 versus the loonie.
The material has been provided by InstaForex Company – www.instaforex.com