The U.S. dollar had clawed back some of the losses sustained after last week’s poor U.S. jobs report. This is due to the help by firmer U.S. Treasury yields in a big week for major central banks. The dollar index edged 0.1% higher to 92.23. The weak jobs report did not spark a new wave of dollar selling. The dollar got boosted also because of the benchmark 10-year U.S. Treasury yields firming to more than one-week highs. Latest data shows that they have increased bets on the greenback. On the other hand, the euro for a second consecutive week, boosting net bets to their highest.
National Australia Bank predicts that the central bank will reduce asset purchases. NAB analyst Tapas Strickland wrote a report that although the optics of tapering amid protracted lockdowns means it is likely to be a close decision. The euro also failed to extend its gains. This is after rising above the $1.19 levels for the first time since July end. It was trading at $1.1873 before a European Central Bank policy decision. Economists says that it is still too early for the ECB to call time on emergency stimulus. After euro area inflation surged to a 10-year high at 3% last week, it could agree to slow the pace of its bond. In cryptocurrencies, bitcoin was about flat at $51,785.60. Smaller rival ether traded little changed at $3,942.77.
