The market mood has soured after US Nonfarm Payrolls showed the first job loss since last spring and the Federal Reserve is reluctant to act. The dollar is rising alongside Treasury yields and coronavirus continues raging while vaccine distribution has yet to ramp up.
The greenback had already been on the rise beforehand, in response to Democrats winning control of the Senate and are keen on providing generous stimulus to the economy. President-elect Joe Biden is set to lay out his economic agenda on Thursday.
GBP/USD tumbles to 1.35 amid US dollar strength, while USD/JPY clings to gains near one-month tops, above 104.00. EUR/USD trades 0.37% lower on the day, extending a two-day losing streak.
Gold, which rose in response to the “blue wave” is down as returns on US debt rise, licking its wounds below $1,844. WTI drops to $52.25, down 0.47% intraday, after refreshing multi-day high.
In the absence of any major market-moving economic releases, either from the EU or the US, the broader market risk sentiment, along with the US bond yields should continue to play a dominant role.