The US dollar charts a minor recovery from multi-year lows. The US Democrats flip Senate, revive reflation trades. The US inflation expectations jump to the highest since November 2018. The dollar index, which tracks the greenback’s value against majors, has recovered to 89.47 from the 33-month low of 89.21 reached Wednesday. However, the path of least resistance for the US dollar appears to be on the downside, with the US bond markets signaling reflation. The US 10-year yield has risen above 1% for the first time since March 2020 alongside the US 10-year breakeven rate’s rise to a 26-month high of 2.06%. The bond markets look to be pricing reflation, expansion in the level of output of an economy by government stimulus, using either fiscal or monetary policy. The Federal Reserve is already running an ultra-easy monetary policy. Meanwhile, with the Democrats now in control of the US Senate, the markets expect a bigger fiscal stimulus. According to Bloomberg, reflation trades are getting a new lease on life with Democrats taking Senate. As such, the anti-risk greenback is expected to remain under pressure. That said, a minor bounce could be seen if the US-China tensions weigh over the equity markets. According to the Wall Steet Journal (WSJ), US officials are reportedly considering prohibiting Americans from investing in Alibaba and Tencent Holdings. The move comes following the US President Donald Trump’s decision to ban transactions with 8 Chinese software applications and NYSE’s decision to delist Chinese telecommunications companies. However, at press time, the futures tied to the S&P 500 are up 0.44%. Technical levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Japan coronavirus advisory panel State-of-emergency declaration needed FX Street 1 year The US dollar charts a minor recovery from multi-year lows. The US Democrats flip Senate, revive reflation trades. The US inflation expectations jump to the highest since November 2018. The dollar index, which tracks the greenback's value against majors, has recovered to 89.47 from the 33-month low of 89.21 reached Wednesday. However, the path of least resistance for the US dollar appears to be on the downside, with the US bond markets signaling reflation. The US 10-year yield has risen above 1% for the first time since March 2020 alongside the US 10-year breakeven rate's rise to a 26-month high… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.