A move to 90.00 seems to picks up pace DXY corrects lower from weekly tops just above 91.00. The 90.00 region is expected to hold sellers near-term.
Big Picture USD BULLISH THEMES America is hiring and getting more stimulus Higher bond yields to prompt investors to re-think their strategies for 2021 The expansion of the Fed's balance sheet results in a rising US dollar Congress to pursue tougher regulations on big tech and the energy sector Potential higher growth in 2021 to encourage Fed to wind down QE More USD-denominated debt, the world is indebted in dollars Dollar is still the king among fiat currencies New US stimulus pushes out the pending fiscal cliff and gives a proverbial shot in the arm An insolvency event is almost inevitable Dems taking Senate to grant vast spending Uncertainty about COVID-19 and fundamentals is high and rising More evidence of rising contagion waves to fuel concerns about new lockdown measures and their economic impact Skepticism over the source of inflation pressures
USD BEARISH THEMES Surge in oil prices to trigger a resumption of the dollar's down move The economy is in terrible shape when looking at the employment picture The global trade-and-payments systems move away to a bilateral exchange framework Acknowledging the recent weakness and inflation concerns show the Fed remains dovish Scales tilt toward more gold ownership and less dollar holdings Concerns about deeper scarring of the economy to prompt action by the Fed Fed to face an inflation problem US debt to skyrocket under a Democrat-controlled Congress Cash is not in demand Overwhelming support to spending ambitions of the incoming administration US stimulus bill funds Mnuchin's slush fund Bearish outlook can be framed as a return of the twin-deficits US inflation to outpace other economies