US Dollar Rises to Over Two-Month High Against Major Peers

The US dollar has soared to an over two-month high against its major peers, the Euro and the Japanese yen, ahead of the release of the much

Arslan Butt•Thursday, February 4, 2021•1 min read

US Dollar Rises to Over Two-Month High Against Major Peers

On Thursday, the US dollar has soared to an over two-month high against its major peers, the Euro and the Japanese yen, ahead of the release of the much awaited NFP report even as traders turn less pessimistic about the state of the US economy. At the time of writing, the US dollar index DXY is trading around 91.37.

Investor confidence in the US economy and currency appears to have returned as the country’s vaccine distribution program gathers steam. In addition, optimism among traders for the rollout of more fiscal stimulus measures is on the rise, further supporting hopes for speedier economic recovery.

Recent economic data releases have also lent support to this sentiment, sending the US dollar higher against its major peers, which have suffered as a result of weak data releases. This holds especially true in the case of the Euro that has traded bearish in recent sessions over rising concerns about the Eurozone economy suffering on account of the latest round of lockdowns and restrictions.

The non-farm payrolls report due for release on Friday is expected to show an increase of 50k jobs in the US during the month of January, after a contraction by 140k jobs in December. A positive report could further boost the appeal of the greenback and strengthen the bullish trend.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.