Now on its fourth consecutive session in the green, the US dollar continues to gain ground on other major currencies during early Thursday trading, as rising Treasury yields triggered an increase in demand for the greenback. These gains are justified by the growing confidence of investors in a rosier future for the American economy, fuelled by the promise offered by President Biden’s stimulus plan and by encouraging private sector employment numbers published on Wednesday, that showed a recovery in new jobs added during January. More employment data will be published later today and tomorrow; should it support the current optimism, demand for the dollar is likely to remain high, with the Federal Reserve coming under pressure to start reviewing its current dovish stance.
