Forex Today: Dollar marches forward with yields, after robust NFP, stimulus progress eyed

Yohay Elam FXStreet

Here is what you need to know on Monday, March 8:

The US dollar is on the rise on Monday after the Senate passed a modified version of the stimulus package and Friday's robust Nonfarm Payrolls figures. Rising yields and the bump in oil prices are eyed.

US ten-year Treasury yields are hovering near 1.60% and continue supporting the dollar.

EUR/USD has dipped below 1.19, a new 2021 trough, pushed down also by the disappointing 2.5% drop in German industrial output. The Sentix Investor Confidence figures and the European Central Bank's weekly bond-buying figures are eyed.

GBP/USD is trading closer to 1.38, on the first day of the UK reopening ahead of a speech by Bank of England Governor Andrew Bailey later in the day.

Gold has been fighting over $1,700, benefiting from stimulus funds and shrugging off the increase in yields.

Jobs: The sell-off in US bonds comes after America recorded 379,000 jobs gained in February, double the early expectations. The robust labor figures raise growth prospects, yet the Federal Reserve is still concerned by the fact that some 9.5 million Americans remain out of work due to the pandemic.

Stimulus: The US Senate passed a modified version of President Joe Biden's $1.9 trillion coronavirus relief bill, ceding some ground to moderate Democrats. The legislation now returns to the House, where more liberal members of the president's party will likely support the upper chamber's version. Biden aims to sign it by the end of the week.

Oil: An attack on a critical Saudi oil export facility has failed, but boosted oil prices, sending Brent above $70 and WTI over $67. Petrol prices were propelled by the OPEC+ decision to extend production cuts.

Bitcoin has been fluctuating around $50,000, extending the battle. Ethereum trades around $1,700 and XRP is hovering around $0.45.

Five factors moving the US dollar in 2021 and not necessarily to the downside

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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