The prospect of rising US fiscal stimulus continues to drive the benchmark 10-year US bond yields to rise higher by 1.10% at today's European trade opening, prompting a surge in the US dollar.
This increase follows Democrats' victory in the Senate and President-elect Joe Biden, which raises expectations for the implementation of larger stimulus measures.
Higher US bond yields also drove up the USD / JPY pair ahead of the weekend trading, where for the first time the price reached 104.00 at the beginning of the European session.
The dollar index, which measures the strength of the greenback dollar against a basket of major currencies, jumped to around the price level of 90.00, far below the 3-year low recorded on Wednesday, 89.16.
The surge has pushed euro trading to plummet to a one-week low against the US dollar.
While pound trading rose slightly following expectations from UK Prime Minister Boris Johnson about the Covid-19 vaccine, the currency remained under pressure following the growing threat of a growing coronavirus case.
Market focus is now shifting to the publication of the US NFP employment report and Canadian employment data tonight which is expected to show weak growth in December.
