* Control of both Houses gives Biden latitude to push agenda
* Yuan edges lower against the dollar
* Dollar outlook mixed
* Graphic: World FX rates in 2021 https://tmsnrt.rs/2RBWI5E (Adds economic data, updates prices)
By Chuck Mikolajczak
NEW YORK, Jan 7 (Reuters) - The dollar bounced on Thursday from levels not touched since March 2018 to its highest in a week as investors looked at the potential for an economic rebound in upcoming quarters and investors who had been betting on the euro took profits.
The dollar index =USD , which measures the U.S. currency against a basket of peers, rose 0.53% at 89.785 after climbing as high as 89.979, with the euro EUR= down 0.43% to $1.2272.
The dollar had little movement on Wednesday as hundreds of President Donald Trump's supporters stormed the U.S. Capitol in a bid to overturn his election defeat, battling police in the hallways and delaying for hours the certification of Democratic President-elect Joe Biden's victory. victory has raised expectations for more fiscal stimulus measures to bolster the economic outlook and lifted longer-dated bond yields, with the benchmark 10-year Treasury's yield US10YT=RR climbing above 1% on Wednesday for the first time since March. On Thursday, the yield reached a high of 1.088%. the rates start to move, as they did yesterday, it wasn't a big move but it was in the right direction, that is the direction of the future," said Joseph Trevisani, senior analyst at FXStreet.com.
"It's debatable on how long it is going to take for the vaccines to work and hopefully end the pandemic but once that happens, you are going to get a much stronger U.S. recovery and that will lead to a stronger dollar."
Economic data on Thursday, however, underscored a stalling labor market, although a gauge of activity in the services industry quickened in December. many analysts maintain a weaker long-term outlook for the dollar and see the recent advance as the unwinding of bearish bets against the greenback, after it fell nearly 7% in 2020 and as much as 0.9% in the new year.
The yuan edged lower at 6.47 per dollar CNH=EBS after Chinese authorities signaled a desire for a slower pace of gains. remarks by the State Administration of Foreign Exchange on Wednesday follow an advance of around 10% on the greenback since last May as China's economic rebound has led the world's pandemic recovery.
Sterling GBP= was last trading at $1.3568, down 0.29% on the day as it continued to slip below the near three-year high of $1.3703 touched on Monday.
Bitcoin BTC=BTSP marked a fresh all-time high, topping $40,000 on Thursday, and was last up 6.24% at $39,148.91. bid prices at 2:58PM (1958 GMT) Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Dollar index
=USD
89.7850
89.3250
+0.53%
+0.00%
+89.9790
+89.2940 Euro/Dollar
EUR=EBS
$1.2272
$1.2328
-0.45%
+0.45%
+$1.2345
+$1.2245 Dollar/Yen
JPY=D3
103.8200
103.0400
+0.74%
+0.50%
+103.9500 +103.1000 Euro/Yen
EURJPY=
127.42
127.00
+0.33%
+0.39%
+127.4900 +126.9200 Dollar/Swiss
0.8846
0.8781
+0.76%
+0.00%
+0.8861
+0.8778 Sterling/Dollar GBP=D3
$1.3569
$1.3610
-0.29%
-0.67%
+$1.3632
+$1.3533 Dollar/Canadian CAD=D3
1.2685
1.2680
+0.06%
-0.37%
+1.2733
+1.2665 Aussie/Dollar
AUD=D3
$0.7759
$0.7806
-0.58%
+0.88%
+$0.7817
+$0.7726 Euro/Swiss
EURCHF=
1.0856
1.0826
+0.28%
+0.45%
+1.0862
+1.0826 Euro/Sterling
EURGBP=
0.9042
0.9055
-0.14%
+1.17%
+0.9077
+0.9016 NZ
NZD=D3
$0.7258
$0.7295
-0.49%
+1.09%
+$0.7304
+$0.7226 Dollar/Dollar
Dollar/Norway
NOK=D3
8.4300
8.4165
+0.21%
-1.78%
+8.4715
+8.4065 Euro/Norway
EURNOK=
10.3485
10.3680
-0.19%
-1.13%
+10.3785
+10.3325 Dollar/Sweden
8.1906
8.1645
-0.04%
-0.07%
+8.2319
+8.1577 Euro/Sweden
EURSEK=
10.0522
10.0565
-0.04%
-0.24%
+10.0905
+10.0504