Major currency trading continued to be gloomy as the market entered the European session, with the greenback dollar continuing to strengthen supported by 10-year high treasury yields.
The dollar index, which measures the strength of the greenback dollar against most major currencies, strengthened at 90.32.
The euro continued to trade lower, hovering around the 2-week low against the US dollar at 1.21900 at the start of the European session.
After witnessing several episodes of the fall of the US dollar, investors are now seeing an economic recovery that will drive up inflation and stop the Federal Reserve (Fed) easing by the end of this year.
The Fed even acted earlier not to increase its bond buying scheme after seeing weakness in the U.S. employment sector, where an NFP report last Friday recorded a reduction of up to 140,000 jobs in December.
This may be due to the Fed wanting to make room for a new administration Joe Biden who will implement a larger stimulus package.
Meanwhile, the pound is expected to be under pressure in the near future as UK lawmakers are now considering stricter restrictions.
Although Prime Minister Boris Johnson has implemented level 4 restrictions on 80% of its population by the end of December, the number of cases of infection within 7 days is now showing an increase of up to over 60,000 people.
