U.S. dollar rising, markets optimistic on the economic outlook

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U.S. dollar rising, markets optimistic on the economic outlook. The U.S. dollar continues to rise as the U.S. economic outlook continues to show progress. Optimism is growing in response to forecasts that U.S. Employment released tomorrow will be better than expected.

It is expected that the US Dollar Rally will continue until the trading session on Thursday (04/February) tonight.

EUR/USD fell 0.54 percent to $1,197. That means the figure is below the resistance level of 1.20 reached earlier this week.

The dollar is currently ahead of the Yen by 0.4 percent to 105.46. The level rise occurred on November 11.

The United States Dollar Index (DXY) also increased from 0.41 percent to 91.54. According to the news we obtained, the news was written, the highest level since December 01.

U.S. Economic Outlook Increasingly Reassuring

Despite depreciating up to 7 percent in 2020, the U.S. dollar has continued to strengthen since the beginning of this year. Shot-Covering action is increasing and market participants assume that the U.S. economic recovery from the pandemic will be relatively stronger than other countries.

Meanwhile, Edward Moya, senior OANDA analyst, said there was a fundamental shift in the short term. The market assesses, the United States economic outlook is better than the Eurozone economic outlook, especially regarding the labor market.

One of the proofs is the reduced weekly U.S. Jobless Claims data. 779,000 people were applying for unemployment benefits last week; fewer than 812,000 in the previous week and better than expected. Also, ADP Non-Farm Employment Change data, released first, showed an increase to 174,000 in January, from -78,000 late last year.

The U.S. dollar strengthened after bond yields with longer tenors rose today. That's because investors anticipate a massive Pandemic aid package from Washington, as well as positive economic recovery factors. They also assessed the stabilization of the U.S. labor market. The benchmark U.S. 10-year bond yield rose 1.5 basis points in this morning's trading session to 1.1461 percent and another point to reach a 1.16 percent high since January 12.

On the other hand, the issue of the U.S. stimulus package continues to roll. To counter the rejection of some Republican officials in the Senate, Democratic party members at the institute are preparing to hold a marathon "vote-a-Rama" session. The goal is to override Republican opposition to President Joe Biden's $1.9 trillion COVID-19 aid proposal.