简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:Covid-19 kept raging the US, amid which the latest spate of economic data signaled a turn for the worse.
Although the US government had pleaded with the public to stay home on Thanksgiving, a few Americans still ignored warnings and traveled outside. As a result, the Covid-19 kept raging the US, amid which the latest spate of economic data signaled a turn for the worse. The November unemployment rate dropped from 6.9% to 6.7%. Nonetheless, the Non-Farm Payrolls missed the expectation, down from 610k to 245k, sending the US economy into an abrupt nosedive.
With Christmas and New Year's just over two weeks away, few Americans are heeding warnings. They believe the upcoming vaccines will secure their domestic Christmas trips. Financial markets become increasingly worried in this case. Once the coronavirus spreads wider and thereby hitting the US economy, traders will turn bearish about the greenback. Under the worsening pandemic, the Fed scheduled the rate meeting next Wednesday (Dec. 16). Financial markets overwhelmingly bet on Powell's post-meeting dovish statement amid the economic downturn. By this account, the dollar will see its weakness lasting till the end of the year.
Technically speaking, the DXY has slipped to 26.95 regarding the 14-day Relative Strength Index (RSI), reflecting the seriously oversold USD. The DXY may embrace a drastic rally after seeing a breach below 20 on the 14-day RSI, while a break below the psychological barrier of 90 will instead pave the way for a downtrend.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
The Federal Reserve Vice Chair Randal K. Quarles said in a recent speech that he was optimistic about the country's economic outlook, which could push the dollar higher in the short term and keep the dollar dominating non-USD currencies.
The US Dollar Index bounced up by around 1% after releasing the minute of Federal Reserve Board on 19 Aug, breaking the record high since this March.
Recently, markets seem to calm down as the U.S. stocks settled higher above early low and the VIX largely shrank 5 percentage points.
In the following week, USD may keep retreating under the pressure of stock markets and Fed rate decision.