Dollar extends its winning streak on rise in U.S. yields

The greenback continued its recent winning streak and rose across the board on Tuesday due to increasing U.S. Covid-19 vaccinations as well as plans for major stimulus package together with a rise in U.S. Treasury yields.  
  
Reuters reported U.S. consumer confidence raced in March to its highest level since the COVID-19 pandemic started, supporting views that economic growth will accelerate in the coming months, driven by more fiscal stimulus and an improving public health situation.    The Conference Board said on Tuesday its consumer confidence index jumped to a reading of 109.7 this month, the highest level since the onset of the pandemic in March 2020, from 90.4 in February. Confidence remains well below its lofty reading of 132.6 in February 2020. Economists polled by Reuters had forecast the index rising to a reading of 96.9.  
  
Versus the Japanese yen, dollar continued its recent winning streak and rose from 109.75 in Australia. Intra-day rise then accelerated at European open and price rallied to a 1-year high of 110.42 in New York morning on rise in U.S. Treasury yields before retreating to 110.19 on profit-taking as well as cross-buying in jpy and then moved sideways.  
  
The single currency continued its recent losing streak and fell from 1.1773 in Asia to 1.1734 in European morning before staging a rebound to 1.1749. Price met renewed selling there and dropped to a near 5-month low at 1.1712 in New York morning on usd's strength and then recovered to 1.1732.  
  
The British pound gained some respite in Asia after Monday's fall from 1.3847 to 1.3755 and rebounded to 1.3783. However, renewed selling interest emerged and the pair dropped to 1.3743 in European morning. Cable then recovered to 1.3779 but only to tumble to session lows of 1.3707 in New York morning on usd's strength before rebounding to 1.3741 near the close due to cross-buying in sterling.  
  
Data to be released on Wednesday :  
  
Japan industrial output, construction orders, housing starts, New Zealand NBNZ business outlook, NBNZ own activity, building permits, China NBS non-mfg PMI, NBS mfg PMI, Germany import prices, unemployment change, unemployment rate, U.K. GDP, nationwide house price, France consumer spending, CPI, producer prices, Swiss investor sentiment, EU HCIP, Italy CPI, U.S. MBA mortgage app, ADP employment change, Chicago PMI, pending home sales, Canada GDP, producer prices.