After several days gaining ground to other major currencies, the dollar is trading flat during the early part of Thursday’s session. The greenback’s recent strength resulted from expectations that a larger than previously thought stimulus package, that Joe Biden will seek to deploy once he is sworn in, could force the Fed to anticipate the tapering of its asset purchase program. This prospect drove the 10-year treasury yield above 1% for the first time in months, forcing an increase in demand for the American currency. However, with a speech by Chairman Jerome Powell scheduled for later today, investors are pausing in their quest for dollars and will be paying close attention to the Fed chairman’s words, to try and find clues as to the central bank’s stance on the increased fiscal intervention.
