The US dollar was significantly stronger since the sales session in New York yesterday. The increase of US yield obligation in the middle of the economy recovery prospect becomes the catalyst. That supports the USD really well so far.

The index of dollar or DXY was sold at the level of 90.65. It is not far from the daily opening level that forms the increased gap from the close a day before. The 10-year yield obligation tenor in America is impressively increasing than others.

That makes the market participants decided not to place their money on the safe-haven instrument such as an obligation. It triggers the increase of yield treasury. Besides that, the expectation of inflation is also faster than before.

What Is the Cause of the US Obligation Increase?

The fast inflation level which is faster than the expectation before has contributed to making the United States obligation yield is higher. The point is that that increase is supported by inflation when the energy commodity price is increasing.

Furthermore, that happened in line with the stimulus plan that will be given in the Biden era. Besides that, the global economic recovery is going to reach a more solid stage. It may become one of the factors that make the increase of result.

That is the analysis made by a senior forex expert from a well-known company. It is so interesting to talk about the Dollar rebound. One of the factors that support it is the statement from The Fed’s member. What is that statement and why?

A lot of people or market participants thought that the statement from James Bullard was hawkish. It is because the economic condition so far is in a good situation and showing the recovery from the impact of the pandemic. That is impressive progress.

Vaccination Shows it Effectiveness

It is known that vaccination is done in several countries in the world. They may use a different brand, but so far this action shows a great thing. Based on the information, the global case of coronavirus is decreasing right now. It is the good news so far.

For your information, there are several vaccine brands that are applied. Those are like the Pfizer, Sinovac, AstraZeneca, BioNTech, and so on. In each country, that vaccine shows different effectiveness, but all are beyond the WHO recommendation.

In the other case, there is another interesting thing that happened. The yen is sharply weakening to the US dollar. The prospect of American economic recovery has an impact on the increase of obligation return and weakening almost all the major currencies.

That shows how powerful the USD is. In this case, Yen becomes one of the weakest currencies in the market. It was noted that the Yen touched its lowest level in four months to the US dollar. This situation is for sure surprising many people.

The Trend of the Dollar Is Changing

An analyst thought that the declining trend of the US Dollar has been ended. At the beginning of the year, the speculator thought and bet that the USD position will be under 100 yen. However, a different thing happened at the moment.

It seems that they start to leave that view. It is known that both, USD and Yen, are having a safe-haven currency status. However, the American dollar is more interesting for the investors and market participants than the Yen. There is a reason for it.

It is because the obligation return in America is so strong right now. Meanwhile, the decline of currency commodity to the dollar is predicted to happen only for a while. It is because the global economic recovery will have an impact on some commodities.