The US dollar extended its consolidation around a two-month high against the euro and the safe-haven yen on Thursday with market focus now focused on the release of US NFP employment data tomorrow night.
Sentiment for the greenback dollar rose this week as advances in coronavirus vaccination and a move by President Joe Biden to launch more fiscal stimulus boosted prospects for U.S. economic growth.
Market optimism is reflected in the increase in 10-year US treasury yields at 1.139, while 30-year bond yields rose to their highest level since March 2020.
Against a basket of major currencies, the dollar index strengthened at 91.09, down slightly from the gains made during the previous session at 91.27.
In addition, the sharp rise in ADP employment and ISM services data also helped strengthen the US dollar.
With the US NFP employment report to be released on Friday, both data give the market hope to see better than expected in the NFP.
Meanwhile, the kiwi dollar continued to trade high after strong employment data erased expectations that the Reserve Bank of New Zealand (RBNZ) would lower interest rates negatively.
In addition, the pound traded cautiously ahead of tonight's Central Bank of England (BOE) policy meeting which is expected to keep interest rates at a low of 0.10%.
