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U.S. Dollar Climbs Amid Economic Optimism

The U.S. dollar was higher against its most major opponents in the Asian session on Monday, as faster vaccinations and hopes of stimulus boosted optimism about a faster economic recovery.

President Joe Biden is set to outline his infrastructure spending plan on Wednesday in Pittsburgh.

The economic package worth about $3 billion covers infastructure, education, healthcare and environmental programs.

The administration plans to split the package into two parts to avail support from congressional Republicans.

Investors will also be watching U.S. jobless claims data and and the payrolls report due later in the week.

The greenback appreciated to 1.1773 against the euro and 1.3757 against the pound, reversing from its early lows of 1.1794 and 1.3797, respectively. The next likely resistance for the greenback is seen around 1.16 against the euro and 1.34 against the pound.

The greenback recovered to 0.9403 against the franc, from a 4-day low of 0.9381, and held steady thereafter. If the greenback rises further, 0.96 is likely seen as its next resistance level.

The greenback hit a 4-day high of 1.2627 against the loonie, compared to last week’s close of 1.2571. On the upside, 1.29 is likely seen as its next resistance level.

The greenback rebounded to 0.6972 against the kiwi and 0.7615 against the aussie, from its early low of 0.6996 and a 6-day low of 0.7645, respectively. The greenback is likely to challenge resistance around 0.74 against the kiwi and 0.66 against the aussie.

In contrast, the greenback edged down to 109.37 against the yen, from a high of 109.80 seen earlier in the session. The greenback may challenge support around the 107.5 mark.

Looking ahead, U.K. mortgage approvals for February are due in the European session.

The material has been provided by InstaForex Company – www.instaforex.com