By Gina Lee

Investing.com – The dollar was up on Tuesday morning in Asia. The dollar remained at or near the resistance level as the U.S. inflation data is due late in the week. This could lead to gains for the U.S. currency.

This chart tracks the greenback relative to a basket currency was at 95.605 as of 1:36 PM ET (5:00 AM GMT)

This pair rose 0.28%, to 115.44

This pair fell 0.2% to 0.7108, and was also down 0.022% to 0.6631.

Both the pair fell by 0.02% at 6.3606, and by 0.15% at 1.3514.

Following a surprising hawkish shift by the European Central Bank, the euro jumped 2.7% the previous week. However, the single currency managed to hold gains and was not able to overcome resistance at $1.1483. The euro bought $1.1441 last time it purchased European bonds, and European yields are on an uptrend.

A much stronger-than-expected U.S. jobs report during the previous week emphasized the spotlight on inflation, as investors bet on the implications for the U.S. Federal Reserve’s monetary policy tightening deadline.

Futures markets have priced in a one-in-three chance that Fed interest rates will rise by 50basis points March 2022. The dollar has gained a boost from the possibility of more aggressive hikes.

Jan Nevruzi, a strategist at NatWest Markets Rates told Reuters that the surprise beating by non-farm payroll figures (which were previously warned by Fed officials as well as the White House about being very weak due Omicron), leaves the Fed on an unanticipated territory.

He said that the CPI would be crucial in determining how the narrative evolves up to the March meeting. However, he also predicted that March, barring any major surprise, will likely bring only a 25 basis points increase.

Investors are looking forward to Thursday’s U.S. Inflation Data, which is due to arrive on Thursday, even though Tuesday appears to be quiet for data releases.

Bitcoin climbed above the 50-day average and reached $44,000 on Monday, the highest level in almost a month. It has risen more than 17% over the past four sessions.