FXStreet reports that in the view of economists at MUFG Bank, USD support is set to persist.

“The passing of the $1.9trn package earlier this month no doubt helped lift US consumer confidence. The data yesterday revealed confidence surged from 90.4 to 109.7 – the highest since the COVID-19 crisis began and the biggest one-month gain since April 2003. The jump in the Present Conditions Index – seen as a good proxy of job market conditions, jumped by over 20pts, the largest since April 1974. So with Biden encouraged we see no reason to expect any caution now.”  

“Short-term of course this all paints a positive picture for growth expectations in the US and with FX momentum, positioning and technicals all pointing in favour of further USD strength, the near-term outlook for the dollar remains positive.”