The dollar was poised to extend gains against major currencies on Monday after the U.S. jobs report at the end of last week showed the nation’s labour market is recovering from the impact of the coronavirus shock.
The focus now shifts to data on the U.S. services sector due later on Monday, which is forecast to show an acceleration in activity that could further encourage dollar bulls.
In January-March the dollar posted its best quarter against major currencies in almost three years thanks to an improving U.S. economy and rising Treasury yields.
The U.S. currency is likely to build on those gains as investors look for ways to bet on a global economic recovery from the worst of the coronavirus pandemic, analysts said.
“I thought there would be a correction lower in the dollar, but…