US Dollar Posts Strongest Overall Performance at Some Point of Q1 2021, Prepared For More Gains

US Dollar Overall Performance at Some Point of Q1 2021

The US dollar is about to start out the week on a bullish note after a robust NFP report published on Friday came in line with economists’ expectations and reinforced markets’ beliefs that the economy is on target for a speedy recovery. At the time of writing, the US dollar index DXY is trading around 93.10.

The US dollar registered the strongest performance during Q1 2021, bolstered by an increase in US Treasury yields amid expectations for higher inflation also as by expectations that the US economy would post a faster recovery than most of its peers. additionally, over the past few weeks, the third wave of the pandemic through Europe weighed on the Euro – the greenback’s main rival, lending it additional strength.

Investors are likely to continue that specialize in the US’s economic recovery within the near term, which could support further upside for the dollar against its major peers. Multiple rounds of stimulus initiatives being announced by President Joe Biden also as a robust COVID-19 vaccine rollout program are likely to enhance economic conditions rapidly within the coming weeks.

According to the newest NFP report which released on Friday, 916k jobs were added to the US economy during the month of March, above the forecast which was for a rise of around 650k jobs instead. Later in the week, the main target will shift to the ISM non-manufacturing PMI release, which is predicted to reveal a robust expansion within the sector and boost the appeal of the US dollar further.