KEY POINTS OF THE ARTICLE:

• Highlights: Rising bond yields and falling stock markets strengthen the dollar
• Today's currency: GBP/USD, the pound remains in a bullish scenario

Currency Table-Time Horizon: Daily

HIGHLIGHTS: RISING BOND YIELDS AND FALLING STOCK MARKETS STRENGTHEN THE DOLLAR
The dollar continued its rebound yesterday against major currencies. Rising bond yields are supporting the greenback with a 10-year high since March. Traders are now wondering about monetary policy, which would be too accommodative, especially if with the arrival of vaccines the economic recovery accelerates. A member of fed Bostic said the central bank is not locked in its beliefs and can change its forecasts.

For now, however, it is far too early to see a change and the rise in rates has just allowed the dollar to recover from a largely oversold rate. In addition, lower equities led to flows to dollar-denominated safe haven assets

The big losers in this sequence are those who had outperformed namely the AUD and NZD. These currencies are recovering this morning on short-term supports at 0.7640 and 0.7145 respectively which will have to be confirmed at the close. Against the yen the greenback stopped on a bearish oblique while the pound and the euro are suffering from new restrictive measures in Britain and Germany.

TODAY'S CURRENCY: GBP/USD, THE POUND REMAINS IN A BULLISH SCENARIO

The pound returned to a support zone between 1.3480 and 1.3500 that limited its decline. Yesterday's candlestick in contact with this technical support represents a quasi doji in the shape of a hangman, a candle that can be a harbinger of a bullish reversal or the end of the decline, especially if it were confirmed by a positive session today.

The cable is indeed in an upward trend above an ascending oblique that connects the low points since September. The target remains at 1.3900.

A return below 1.3480 would call into question this scenario which would be abandoned in the event of a close under the oblique.

Evolution of the pound against the dollar in daily data: