Forex Today: Higher yields boost dollar, melt gold as US stimulus, BOE's Super Thursday eyed

Here is what you need to know on Thursday, February 4:

US Treasury yields continue their upward march amid hopes for a large US stimulus package, carrying the dollar higher and commodities lower. The effect of vaccine news and upbeat US data is fading ahead of the BOE's rate decision and US jobless claims. 

Stimulus: Democrats have taken another step to pass President Joe Biden's $1.9 trillion coronavirus relief package via a fast track. Talks with moderates from both parties continue and the final program could be lower. Prospects of higher debt issuance and a booming economy have been prompting a sell-off in bonds, raising their yields.

Elevated returns on US government debt have pushed the dollar higher, with EUR/USD nearing 1.20 and GBP/USD dipping under 1.36. Gold has been on the back foot, nearing $1,800. 

The American economy is doing well according to the latest figures. ADP's jobs report showed a robust increase in jobs while the ISM Services Purchasing Managers' Index exceeded estimates as well. Both serve as hints toward Friday's Nonfarm Payrolls figures. Weekly jobless claims are set to drop for a third consecutive week.

See Initial Jobless Claims Preview: Do rising claims augur job losses in January?

US stock markets are relatively stable after a few days of rallies. Treasury Secretary Janet Yellen will meet regulators to discuss the frenzy around the "Reddit stocks" such as GameStop. See Gamestop (GME) fades the rebound as SEC digs into social media fraud

The Bank of England is set to leave its policy unchanged and publish its Monetary Policy Report on "Super Thursday." Governor Andrew Bailey will likely comment on the BOE's review of negative interest rates, the outlook for the economy and Britain's successful vaccination campaign. The UK inoculated 10 million of its citizens. 

See BOE Preview: Bailey set to abandon negative rates, injecting sterling with new energy

The EU is set to receive immunization doses from AstraZeneca over the weekend, allowing it to reignite its vaccination campaign. Mario Draghi, the former President of the European Central Bank, was given the mandate to try to form a new government. 

Data coming from Israel, the world's leader in the field, show a significant drop in hospitalizations and severe disease among the over 60s, who were prioritized with the jabs. 

Cryptocurrencies have been extending their gains above $38,000 and Ehtereum topping $1,600. Dogecoin is also of high interest. 

Dogecoin is on the verge of a colossal explosion if any of these two levels break