The U.S. dollar, as measured by the DXY index, extended its gains and was sharply higher on Monday, bolstered by surging U.S. Treasury yields in the wake of strong economic numbers and hawkish Federal Reserve rhetoric in recent trading sessions. The 2-year note, in particular, surged past 4.45%, marking its highest level since the beginning of the year.
Last Friday, the U.S. nonfarm payrolls report set a positive tone for the U.S. currency by revealing that U.S. employers had added 353,000 jobs in January, nearly double the consensus estimates. Today, the string of favorable data continued with the January ISM services PMI accelerating to 53.4 from the previous 50.5, handily beating the expected 52.00.
