Early on Wednesday, the US dollar is trading bearish after US bond yields slid lower over the government’s failure to approve the next coronavirus relief bill so far, heightening worries about economic recovery in the US being strained. At the time of writing, the US dollar index DXY is trading around 93.20.

Meanwhile, the Euro has strengthened and is trading close to two-year highs over rising expectations that Europe’s economy could recover before the US’s does. The gains in the Euro have driven further bearish moves in the US dollar.

The Greenback has also come under pressure lately over the Congress’ failure to agree on the next round of fiscal stimulus measures – the coronavirus relief bill. Meanwhile, the weekly unemployment benefits worth $600 have lapsed last week even as Democrats and Republicans remain unable to agree on the $3 trillion proposal.

While the US dollar had initially soared as a safe haven currency at the beginning of the pandemic, liquidity boosting measures being undertaken by central banks around the world and decreased market volatility have reduced the demand for this reserve currency since then. In addition, the dollar has also been trading weaker ahead of the latest NFP report due this week, as any disappointing data can further dent hopes for the US economy to recover soon.