The dollar hit a seven-month high on Thursday as an orderly rise in U.S. Treasury yields lent support before speech by Federal Reserve Chairman Jerome Powell that may determine the trend for global bond markets and currencies.

Investors seem to boost bets on U.S. growth and inflation as the government prepares new fiscal stimulus, and speculation is rising that the Federal Reserve could also be closer to normalizing monetary policy than previously expected.

“What the market is looking at today are growth differentials between a recovering U.S. and more of a sputtering Europe,” said an analyst.

As per US data showed that private payrolls rose by 117,000 jobs last month, according to the ADP National Employment Report, missing expectations. However, “expectations are for stronger hiring” when the U.S. releases jobs data for February on Friday, continued an Analyst.

The U.S. economic recovery continued at a modest pace over the first weeks of this year, with businesses optimistic about the months to come and demand for housing “robust,” but the job market only showing slow improvement, the Federal Reserve reported on Wednesday.

The U.S. currency has also benefited from a rise in U.S. Treasury yields. Benchmark 10-year yields US10YT=RR on Wednesday rose to 1.469%, though they are below a one-year high of 1.614% reached last week.

Comments by Federal Reserve Chairman Jerome Powell on Thursday will be closely monitored for look for any indications that the Fed is uncomfortable with the recent yield increases. He will be speaking at an event on the U.S. economy.

Whereas Chicago Federal Reserve Bank President Charles Evans on Wednesday said he sees the recent rapid rise in bond yields as mostly reflecting improvements in the economy.

GBP/USD 4 Hour Chart:

Support: 1.3913 (S1), 1.3874 (S2), 1.3827 (S3).

Resistance: 1.3998 (R1), 1.4045 (R2), 1.4084 (R3).

All the catalysts supports greenback, greenback is in uptrend. We expect bearish trend for GBP/USD.