During today's Asian trading, the US dollar continued its rise against major currencies as rising US yields triggered some easing of bearish bets on the currency.

The dollar has rebounded from a near three-year low, with traders taking profits, particularly against the euro, after the dollar index fell almost 7% in 2020 and 0.9% in the new year amid expectations of US fiscal stimulus. .

This week, Democrats gained effective control of the Senate, which will give President-elect Joe Biden the opportunity to increase spending, which analysts say will be negative for bonds and the dollar.

Later on Friday, investors are waiting for data on the number of jobs in the US non-agricultural sector to understand whether significantly more stimulus will be needed to support the economic recovery.

"The US employment report can be seen as a potential litmus test for dollar bears," analysts at TD Securities wrote in a note to a client.

“Positioning is stretched and the backup in U.S. yields has some investors nervous. Our call for a negative print might not be large enough to trigger a liquidation in shorts, but we think a defensive posture is tactically warranted nonetheless.”