The US dollar has taken a place in the hearts of investors this week and now they are wondering if the US non-farm payrolls (NFP) employment report tonight, will push the euro to a 2-month low or the USD / JPY pair above the 106.
Having seen a series of recent declines, investors now expect an increase in US NFP jobs in January, supported by optimism over the launch of vaccines and fiscal stimulus by the government in December.
At the beginning of the Asian session, the dollar index, which measures the strength of the greenback dollar against major currencies, strengthened at a 2-month high of 91.52.
Commodity-related currencies recorded moderate losses trading around the same price level since the beginning of the week.
The Aussie dollar was seen as less impressed by the Reserve Bank of Australia (RBA) policy statement issued this morning.
In contrast to other major currencies, the pound sterling continued to strengthen following the results of last night's Bank of England (BOE) policy meeting, which saw interest rates remain unchanged at 0.10%.
What supports the pound sterling hike is the indications given by the central bank to reduce bond buying programs and the implementation of negative interest rates may not be forthcoming in the near future.
