Big shuffle after the holiday! U.S. debt pulls the dollar down to a two-week low

U.S. dollar index changed little, with Asian trading at 92.304, after falling 0.9% last week. The dollar fell below 92 on Thursday, the first time since March 23.

U.S. 10-year Treasury bond yield was reported at 1.6622%, which was as low as 1.6170% last Monday. The yield rose to a high of 1.7760% in more than a year on March 30.

The pound/dollar fell to a two-month low, continuing the decline that began after hitting a nearly three-year high in February. Analysts believe that this is related to thrombosis concerns surrounding AstraZeneca's AZN.L vaccine, which is heavily dependent on the UK's vaccination program.

The dollar hovered against the euro at its lowest level since March 23, at $1.1901.

The dollar was trading at 109.66 yen, close to the two-week low reached below 109 on Thursday.

"The U.S. dollar may rise this week," Commonwealth Bank of Australia (CBA) analyst Kimberley Mundy wrote in a research report. "The strong U.S. economic data will highlight the difference between the rapid economic recovery in the United States and the stagnation of other advanced economies."

National Australia Bank (NAB) strategist Tapas Strickland wrote in a client report, “The key to the near-term outlook is whether yields will continue to consolidate around these levels or rise further, and this will support the dollar. The market theme remains The rapid advancement of vaccination supports the rapid rebound of the US economy."

Bitcoin traded above $60,000, moving closer to its record high.

Powell: The U.S. economy is at the turning point

The Fed has always insisted that short-term price pressures will be temporary, which has calmed investors to a certain extent. After the stronger-than-expected producer price index (PPI) data came out, the dollar strengthened on Friday, easing the dollar's worst week of decline this year.

Fed Chairman Powell expressed his optimism about the economy in the "60 Minutes" interview program aired on CBS Sunday (11th). "We believe that the economy is about to accelerate growth and employment will also increase. Strong growth.” He also said that the Fed predicts that nearly 1 million jobs will be created every month in the next few months.

Powell pointed out that the US economy is clearly at an inflection point. This is due to the widespread use of vaccines and strong fiscal and monetary policy support. He believes that employment growth will be very strong in the next few months. Among them, low-wage workers in the service industry, which has been hit hardest by the epidemic, should see a recovery.

He once again warned that the new crown virus has not been completely repelled and the epidemic may worsen again, which is the main risk facing the economy at present. He believes that the United States' unblocking too soon and people returning to their habits too quickly have led to another surge in confirmed cases, and he called on people to maintain social distance and wear masks. When the spread of vaccines starts to slow down and can be controlled, then the economy can move faster.