The dollar was up on Thursday morning, continuing a rebound from near three-year lows against major peers as investors await U.S. President-elect Joe Biden’s plans for further stimulus measures.
Biden is scheduled to unveil plans for “trillions” of dollars in further COVID-19 stimulus measures later in the day. Investor expect that the measures will lead to faster economic recovery lifted U.S. Treasury yields, in turn giving the greenback a boost.
Governments across Europe are tightening their coronavirus restrictions over fears about a fast-spreading strain first detected in the U.K. The vaccination programs continue to be rolled out across the continent, but these are not expected to help to any great degree for another two to three months.
The USD/JPY pair edged up 0.17% to 104.05 as the dollar remained little changed against the yen, after a previous 0.1% rise. The GBP/USD pair inched up 0.03% to 1.3650 while the EUR/USD pair traded 0.1% lower at 1.2149.
Oil prices edged lower Thursday, with traders having to balance the pandemic impact on demand with a larger-than-expected draw in U.S. inventories. Gold was also down on Thursday morning, with investors awaiting details on U.S. President-elect Joe Biden’s plans for further stimulus measures.
The European Central Bank’s meeting minutes from the December decision are due on Thursday. Moving on, the focus shifts towards the critical US weekly jobless claims data and a speech by the Fed Chair Powell.