KEY POINTS OF THE ARTICLE:

• The US Dollar has entered a technical rebound sequence since the Forex session on Thursday, January 7, 2021, against a basket of major currencies.
• Several factors combine and are at the source of this rebound, in particular a slope in the yield curve in the United States.

THE US DOLLAR HAS ENTERED A TECHNICAL REBOUND SEQUENCE SINCE THE FOREX SESSION ON THURSDAY, JANUARY 7, 2021, AGAINST A BASKET OF MAJOR CURRENCIES.

A fact was established during the 2020 stock market balance sheet; the lowest common denominator of the financial markets last year was, by far, the bearish dynamic of the US dollar against a basket of major currencies, against a background of a significant increase in the quantity of money in the United States. However, movements in all asset classes should not be reduced to a simple form of correlation with the USD. I often hear that the rise in BTC is linked to the fall in USD, but BTC/USD gained 270% in 2020, while the US dollar fell 7% against a basket of major currencies over the

The first chart above shows Japanese dollar candles on the left and the US 10-year bond yield on the right. There is a positive correlation between the technical rebound of USD on Forex and an overrun of resistance over the US 10-year period

SEVERAL FACTORS COMBINE AND ARE AT THE SOURCE OF THIS REBOUND, IN PARTICULAR A TENDENING OF THE YIELD CURVE IN THE UNITED STATES.

It is a combination of factors that explain why the US dollar is finally able to rebound and, of course, the Credit market is the main source. The victory of the Democrats in Congress and the presidency of the United States will allow the implementation of the fiscal and budgetary programs of Joe Biden's team, with an immediate impact on the tightness of the yield curve in the United

The rebound of the US dollar can also be read as a sequence of small takeovers on risky assets, a process of buying back “short” on the US dollar that results in a retracing of the euro dollar below the technical resistance to $1,2275.