Dollar moved near its high level in the early week sales. That was supported by the United States economy recovery sentiment which was so quick. The successful vaccine distribution also has a role for this condition so far. What is the detail?
When this news released, the index of dollar or DXY was around in 92.81 level. It was strengthening by 0.08 percent from the daily open price. That main currency was helped by several good economy data and for sure the smooth vaccine distribution.
Furthermore, the great condition of the equity market also has an effect for that. The American market has a positive performance. Many people predicted that it will be going better for some few months ahead. It may support the dollar rally.
Dollar is too Dominant for Euro
In fact, the strengthening dollar is looked quite dominant, especially versus Euro. That was triggered by the strong difference between the USA and Europe due to their vaccination program. Europe is now still trying to solve their problem related to vaccine.
The distribution is not even there. Besides that, the lockdown decisions which are done in several countries in Europe also weight on the Euro performance to fight USD. The result is that the EUR / USD is now in a monthly decline track.
That was happened since in the middle of 2020 and sold around 1.1786. Meanwhile, the US Dollar is also stronger than Yen in several last days. This is because of the dollar position which is more interesting for most of the investors than Yen.
The cause is the higher US obligation result so that market participants decide to choose dollar as their safe haven assets. Nowadays, the USD / JPY pair is around 109.65. The next focus of the investors will be a speech made by Joe Biden in the future.
The Speech Is More about the Infrastructure
Based on the information, the Biden’s speech is more about the infrastructure aspect. He will explain about some details due to a plan of infrastructure. Besides that, people will highlight the data released by the American NFS on Friday this March.
The US dollar pushed Euro in a low level. That was happened in the Monday sales session. The demand of safe heaven due to the margin calls is caused by the hedge fund failure. That made USD is more interesting than Euro.
The index of dollar increased and touched the level of 92.96. That is the strongest level since November. Meanwhile, the EUR / USD was quite flat around 1.163 since yesterday. It means that the progress was the lowest level in four months.
The NASDAQ and S&P index fallen after the world banks stated that they are facing the possibility of losses. The cause is the careless decision made by a hedge fund institution which then identified as the Archegos Capital. The analysts predict something.
What the Analysts Said?
The analysts predicted that the hedge fund institution in that case has a relation to a giant media enterprise in the United States and also a China technology company. That is why; the effects can be strongly felt in the financial market so far.
The USD is stronger amidst the safe haven purchase action. The traders are worrying if a mini-LTCM is now shaped and trying to get out from the under part of the cards. LTCM itself is a giant hedge fund from America which collapsed in 1998.
The cause is their too high leverage strategy. That is why; the United States government was forced to give the bailout fund for that company. Elsewhere, Euro is now still fighting for the lockdown decisions made in some countries in that continent.
