The strengthening of the dollar index could be the driving force of the next week’s trading. The demand for the American currency will be provided by the change of the investor paradigm and the decision of the FOMC Committee on the FRS rate. The Fed is likely to try to wind down a number of QE programs in order to unload its balance sheet, while the Biden aid package and a future tax increase program allow it. Biden could reveal the details in his speech to Congress, providing additional boost to the dollar index.
On the other hand, the reports of the largest companies, as well as the forecasts and decisions of OPEC +, are capable of supporting the rate of major currencies and stock market indices. The cartel will independently assess the prospects for the development of the world economy in order to adjust production to future demand. The expected surge in US GDP is also stimulating investors to withdraw funds from Treasuries, sell the dollar and increase investment in stocks.