A shift in risk sentiment helped to push the US Dollar Index to a 4-month peak in the Asian trading session. Analysts point to the surging yield in US Treasury instruments as part of the reason for the shift toward the Dollar as a safe haven currency. It further suggests to them that investors in general seem to be dismissing the most recent upbeat data; recent labor news showed fewer initial claims last week for jobless benefits. Despite the latest speech from President Biden that the US economy is showing strong signs of recovery, currency analysts believe that it's too soon for the optimistic hype. They note that other global economies with which the US is symbiotically tied are still struggling to gain control over the Coronavirus.
In Tokyo trade as of 9:44 am, the US Dollar Index was lower at 92.82 .DXY, up 0.31%. The EUR/USD was trading at $1.1774, up 0.0501%; the pair has ranged from a low of $1.17616 to a peak of $1.17793. The GBP/USD was also higher at $1.3745, a gain of 0.10141%, off the session high of $1.37591. The USD/JPY was trading at 109.2710 Yen, up 0.10%; the pair has traded from 102.172 Yen to 109.284 Yen in today's session.
EU Economic Outlook Still on Shaky Ground
In the Eurozone, there remains ongoing concerns about the spread of the Coronavirus and the relatively poor roll out of the various Covid-19 vaccines, given the difficulties of the supply stream. That has resulted in widespread lock downs in large swaths of the Eurozone which will continue to weigh on local economies. Looking ahead to data releases later today in the Eurozone, the surveys of German businesses suggests some improvement in the March reports. Analysts are predicting that Business Climate, Current Assessment and Expectations should show a slight improvement from February numbers.