The Dollar is building a more bullish recovery against the Euro, which could have strengthened. On the inflation side, the risk of deflation seems to have been ruled out. The Dollar maintained its rise and tested the 1.2020/E (+0.35%). Robert Kaplan and other FED members were already forecasting a reduction in the pace of FED monetary injections when the American economy began to pull itself out of the health crisis regime. The monetary glut that generates bubble phenomena is at the basis of these estimates.
Note that the diagnosis of a “bubble” has not yet been validated and that the “QE” of $120 billion/month ($80 billion in treasury bills, $40 billion in securitized debt) will have to be continued.
Following the publication of GDP figures that were less alarming than expected in the Eurozone, Eurostat estimates that economic activity contracted by 0.7% (and 0.5% in the EU), compared to the previous quarter. The score would be -6.8% 'only'.
In addition, consumer prices in France would increase by 0.6% in January 2021 after being stable the previous month. Forex analysis forecasts figures in excess of 0.2% (the $ picked up 0.2% against the yen and the Swiss Franc and consolidated by -0.3% against the Canadian dollar, at