- Biden to give details of "trillions" in spending Thursday
- Many analysts still expect dollar to resume declines
- Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
The dollar held above three-year lows versus major peers on Thursday as expectations for President-elect Joe Biden's fiscal stimulus pushed yields of U.S. government bonds higher.
The 10-year Treasury yield rose after CNN reported the stimulus will be around $2 trillion, adding support for the dollar.
In early European morning trading, the dollar index =USD was little changed, up 0.04% at 90.320, as investors waited for Biden to give details later today of a plan for "trillions" of dollars in pandemic relief.
The dollar has risen in four of the past five trading sessions as the prospect of more stimulus has weighed on U.S. government bonds, sending the benchmark Treasury yield above 1% for the first time since March.
Expectations are already running high for the stimulus, but many analysts believe the spending push has already been priced in.
"We feel the fiscal cat is out of the bag already: it would take a lot to surprise markets after the re-pricing seen last week", ING analysts said. "The scope for the reflation trade to restart on the back of this announcement alone is limited."
Moreover, the currency's recent recovery is threatened by a build-up of bearish dollar positions.
FX speculators have been net short the dollar since mid-March, as investors' surging appetite for riskier assets hurt demand for the greenback.
Because U.S. stimulus supports risk sentiment, it could weigh on the dollar, which is considered a safe haven.
The euro EUR=EBS slipped 0.05% to $1.214 after sliding 0.4% on Wednesday.
The dollar advanced 0.13% to 104.02 yen JPY=EBS . Bitcoin BTC=BTSP held on to 10% gains made on Wednesday after sliding almost $12,000 from last week's record high of $42,000. It rose 3% to $38,860 on Thursday, up from as low as $30,261.13 on Jan. 11.
Interest in the cryptocurrency has been soaring as institutional investors began buying heavily, viewing it as both an inflation hedge and as exposed to gains if it becomes more widely adopted.
======================================================== Currency bid prices at 8:31AM (831 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR=EBS $1.2146 $1.2159 -0.10% -0.59% +1.2172 +1.2135 Dollar/Yen JPY=D3 104.0400 103.8850 +0.17% +0.75% +104.1950 +103.8150 Euro/Yen EURJPY= 126.37 126.28 +0.07% -0.43% +126.4900 +126.2300 Dollar/Swiss CHF=EBS 0.8875 0.8875 -0.02% +0.29% +0.8892 +0.8869 Sterling/Dollar GBP=D3 1.3663 1.3637 +0.20% +0.01% +1.3678 +1.3620 Dollar/Canadian CAD=D3 1.2674 1.2701 -0.21% -0.47% +1.2706 +1.2670 Aussie/Dollar AUD=D3 0.7753 0.7734 +0.26% +0.80% +0.7764 +0.7729 NZ NZD=D3 0.7189 0.7175 +0.24% +0.15% +0.7206 +0.7173 Dollar/DollarAll spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX
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