The surge in COVID-19 cases caused by the Omicron variant continued to influence global travel and public services. Hence, investors stayed optimistic that there would be no more lockdowns.
On Monday, the U.S. Food and Drug Administration approved a third dose of the Pfizer and BioNTech coronavirus vaccine for children between 12 and 15 years. It narrowed the time for all booster shots to five months from now, six months behind primary doses.
Yields on U.S. two-year notes, which are sensitive to rate hike expectations, along with 5-year notes, flew to their highest level since March 2020. Benchmark U.S. 10-year and 5-year yields climbed to six-week peaks. The U.S. central bank is seen as possible to begin hiking interest rates by mid-2022.
The dollar index increased 0.552%, with the euro down 0.64% to $1.1295.
The Biggest Percentage for Dollar
The dollar was on track for its biggest daily percentage gain since Dec. 17.
Economic data showed a manufacturing meter for December by Markit fell to 57.7 from its prior reading of 57.8, but still showing expansion. November construction spending increased 0.4%, shy of expectations reaching a rise of 0.6%.
The Japanese yen cut 0.17% versus the dollar at 115.27 per dollar. Meanwhile sterling was last trading at $1.3482, down 0.35% on the day.
Nevertheless, trading volumes should be thin as London, Europe’s main FX trading center, is complete for a market holiday.
On the broader eurozone, manufacturing activity stayed resilient as factories took advantage of an easing supply chain constraints and stored up on raw materials at a record pace.
