The US dollar continued to strengthen in trading on Wednesday to maintain its position in the market after successfully recovering from the fall at the opening early last week.
The same factor that weakened the US dollar before, the tariff plan of President-elect Donald Trump is now again supporting the strengthening of the currency king.
It was recently reported that Trump is considering declaring a national economic emergency in preparing the legal basis for a series of tariffs that will be imposed on the countries that are his focus.
In addition, investors assess that Trump's policies, including lowering tax rates, will boost economic growth, but analysts warn of a rebound in inflation.
Following the report, the 10-year US Treasury yield reached 4.73%, an 8-month high, while the dollar index (DXY) rose to 109.00 points.
In the focus of the New York session yesterday, ADP employment data was released showing that private employment growth in the US in December was low at 122,000 compared to the forecast of 139,000.
This gives a bad signal for the NFP employment report to be published later this week.
Weekly data on US unemployment claims was also released, but the figure showed a good decrease compared to forecasts and the previous week.
Next, investors' attention turned to the FOMC meeting minutes with details also focused on the policies of the Donald Trump administration.
Policymakers are looking at potential changes in trade and immigration policies.
In addition, inflation will be harder to predict and they will take a cautious approach in the coming quarters.
