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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD remains heavy below 1.2300 after BoE hits the pause button
GBP/USD remains under heavy selling pressure below 1.2300 in the European session on Thursday. The BoE unexpectedly held rates steady at 5.25% after its September meeting. Odds of a November hike fall amid the UK's soft inflation and grim economic outlook.
EUR/USD stays depressed near 1.0650 on sustained US Dollar strength
EUR/USD is consolidating losses near 1.0650 in the European trading hours on Thursday. The Fed kept rates unchanged but indicated one more rate hike before the year-end. US yields sit at multi-year highs, underpinning the US Dollar ahead of data.
Gold falls to $1,920 ahead of US data
Gold price is holding lower ground near $1,920 in the European session on Thursday. Investors seem to shift their focus on upcoming US data after the US Federal Reserve's hawkish hold on Wednesday triggered a fresh US Dollar rally.
Tether increased its secured loans in Q2 despite commitment to reduce lending
Tether Holdings has resumed the lending of its stablecoins in the form of secured loans to clients after announcing that it is set to wind down this practice less than a year ago.
Fed governors see far less room to cut rates next year
US yields at all tenors had settled near/mostly just below cycle peak levels going into the Fed decision. The Fed as telegraphed kept its policy rate unchanged at 5.25%/5.50%.