empty
 
 
Stai per lasciare
www.instaforex.eu >
il sito gestito da
INSTANT TRADING EU LTD
Apri un conto

22.07.202015:08 Forex Analysis & Reviews: Three main reasons that put pressure on US dollar

Revisione a lungo termine
Queste informazioni sono fornite ai clienti al dettaglio e professionisti come parte della comunicazione di marketing. Non contiene e non deve essere interpretata come contenente consigli di investimento o raccomandazioni di investimento o un'offerta o una sollecitazione a impegnarsi in qualsiasi transazione o strategia in strumenti finanziari. Le performance passate non sono una garanzia o una previsione delle performance future. Instant Trading EU Ltd. non rilascia alcuna dichiarazione e non si assume alcuna responsabilità in merito all'accuratezza o completezza delle informazioni fornite, o qualsiasi perdita derivante da qualsiasi investimento basato su analisi, previsioni o altre informazioni fornite da un dipendente della Società o altri. Il disclaimer completo è disponibile qui.

Exchange Rates 22.07.2020 analysis

Sharp declines in interest rates, a flood of liquidity from the Federal Reserve System to cushion the economic impact of the COVID-19 indicate a drop in the US dollar in the future.

Gloomy future

The future of the US dollar looks bleak. The daily rise in the number of people suffered from coronavirus, tensions with China, as well as the abandonment of the US currency by investors put the US dollar at risk. Experts suggest that the greenbacks will fall in the near future.

Since the beginning of July, the US dollar has lost 0.7% against a basket of other currencies. At the moment, it is more than 6% below the peak reached at the end of March. The US dollar is weakening because the United States faces more serious risks than other major economies.

Unlike the US, Europe's economy is gradually resuming its work. What is more, the euro's prospects has been boosted by the development of an European Recovery Fund. At the same time, the Chinese yuan is gaining momentum.

The United States removed some restrictions on movement and, as a result, economic indicators recovered. Nevertheless in the country was fixed maximum one-day rise in the number of COVID-19 cases since the beginning of the pandemic. This, in turn, will lead to further restrictive measures and less robust economic performance.

Political risks

Moreover, Congress must prolong the emergency unemployment benefits program by the end of the month. Otherwise, the November US presidential elections could negatively affect the country's economy.

Donald Trump's rating is significantly below Joe Biden due to the riots and widespread complaints about the measures taken to combat the coronavirus. It seems that democrat Joe Biden will remove Trump from the pedestal.

George Saravelos argues that the Democrats' victory in the presidential election would negatively impact the US dollar. Moreover, the demand for greenbucks as a safe-haven asset is weakening.

FRS fault

Olivia Frizer, head of international marketing research at BNP Paribas, says the US dollar has lost its popularity among investors. Previously, in order to buy american assets, investors took out loans in low-benefit currencies such as the yen and the euro. Now everything has changed. This will lead to the growth of the european and chinese currency.

Now, FRS negotiations about the control of the revenue curve, which includes the central bank setting limits for Treasury incomes and market intervention to contain those restrictions, have also made it clear to investors that rates are unlikely to grow anytime soon.

Keith Jax, head of monetary strategies at Societe Generale, is confident that actions of FRS have led to the weakening of the US dollar.

Eseguito da Kate Smirnova
Esperto analista di InstaForex
© 2007-2024

Apri un conto di trading

Le recensioni analitiche di InstaForex ti renderanno pienamente consapevole delle tendenze del mercato! Essendo un cliente InstaForex, ti viene fornito un gran numero di servizi gratuiti per il trading efficiente.




Stai per lasciare www.instaforex.eu, il sito Web gestito da INSTANT TRADING EU LTD
In questo momento non potete parlare al telefono?
Ponete la vostra domanda nella chat.

Turn "Do Not Track" off