Investing.com - The dollar edged higher in early European trading Monday, as accelerating progress on vaccination hints comparative growth expectations from the dollar's favor, ahead of a crucial employment report.
At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six additional currencies, was up 0.1% at 92.865, only below a four-month high of 92.868 reached overnight.
USD/JPY was down 0.1percent at 109.55, GBP/USD was down 0.2percent at 1.3760, although the risk-sensitive AUD/USD fell 0.2% to 0.7620.
The U.S. dollar has been in demand over the past couple of weeks, as a careful economy mood pushed investors to security while U.S. economic strength and a rapid vaccine rollout have added into the greenback's glow.
U.S. jobless claims fell to a one-year low last week and President Joe Biden said he'd double his vaccination goal, after surpassing 100 million shots 42 days before schedule.
This has seen bond yields climb sharply this year, together with the benchmark 10-year Treasury return climbing as large as 1.75% a week.
"There are not many signs yet that what we see as a corrective dollar dip has run its course," said analysts at ING, in a research note.
EUR/USD fell 0.1% to 1.1781, continuing to endure as European inoculations are hit by supply issues and safety concerns.
"Much attention will remain on the virus situation in Europe and whether lockdowns can slow growing case numbers and whether the slow rate of vaccinations can finally reach exit speed," said ING, adding"that leaves EUR/USD vulnerable to 1.1700 at the week ahead."
U.S. information this week comprises Purchasing Managers Index figures midweek, but the main release will be the official employment report due on Good Friday, that is expected to show a continuing recovery in the labour market, with the unemployment rate seen falling from February's 6.2%. .
"None of this ought to sway the Fed, however, which still expects 10 million people to re-discover work and has gone out of its way to undermine the unemployment rate as a catch-all figure for those jobless," said ING.
