Cryptocurrency

Forex: dollar bounces after scoring a minimum of 2 years

The dollar bounced off a minimum of 2 years after a bad performance in the last few weeks in the Forex market. Do you mean that the american currency is on the way to a speedy recovery?

The month of July was the month with the most complicated for the dollar in your performance in the Forex market. Reaching a minimum not seen in more than 2 years for the currency, investors stopped focusing on the american currency.

This negative performance looked like it was going to stay, but, the dollar had a bounce on the day Tuesday.

Does the dollar recovered forces?

The dollar bounces back after a minimum of 2 years and seems to have regained forces on Tuesday, after a performance in two years. This lift was due to the selling pressure in the stock market faded before a meeting of the Federal Reserve.

In addition, there was significant progress in the political discussions on the next bailout package fiscal of the united States, since they finally seem to come to a conclusion.

And though investors saw this performance with surprise, what is certain is that the analysts predict that the dollar continues to stagnant in their bad performance of the month.

Therefore, you need much more than a bounce of a sudden to regain their past performance.

The uncertainty grows by the meeting of the Federal Reserve

Most analysts say that the reasons for the large fall in the dollar, especially the fall of the real rates, remain intact. That the currency is still not able to recover from such a fall.

However, the pace of the fall of the american currency stopped his pace frantic in a pause is justified. As the long-awaited meeting of the federal reserve to discuss economic affairs and the package costs of EE. UU. they have allowed a pause for the american currency.

“Perhaps it is a case of the market that is getting ahead of itself,” said Moh Siong Sim, an analyst of foreign currency of the Bank of Singapore.

In addition, Friday’s deadline for the Congress of EE. UU. extend unemployment benefits, it generates even more uncertainty, as both events are sufficiently unpredictable as to inject some nerve into the bets against the dollar.

Finally, the analysts do not anticipate any change of policy in the meeting of the Federal Reserve, scheduled for Wednesday.

A change could be the target of average inflation, which would see the Federal Reserve with the aim of pushing inflation above its 2% target.

Performance of the dollar on the day Tuesday

Against a basket of currencies, the dollar rose from a minimum of two years of 93.492 to 93.918. Even so, low of 3.6% in July, and will need to bounce back strong to avoid posting their worst month in almost a decade.

The dollar bounces back after a minimum of 2 years in the Forex market. Source: Investing

In the case of the virus, infection rates in the united states. UU. seem to be stable, with a slight fall, although it is still early to draw any conclusions.

But the economic impact of the restrictions to restrain its spread, and the loss of jobs only begin to show its effects in the american economy.

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About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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