In a final GDP data released several nights ago, the US economic was reported experiencing the expansion of 4.3 percent. That was happened in the fourth quarter in 2020. That number is higher than the preliminary which noted the growth of 4.1%.
Based on the data from the US Government, that thing happened because of the increase of business investment. However, the newest American GDP growth is unable to fight the 33.4% increased happened on the further quarter. Everything is in line with the prediction.
The United States of America economy is predicted to be better again after the coronavirus spread. Based on the Dow Jones and Wall Street Journal survey result, the experts predicted that the US GDP will rise to 4.9 percent in the first quarter this year.
The Solid Data of American Economy Growth
The claim of jobless data for last week was reported to decline. That was completing the solid data of economy growth in America. The amount of people who made the jobless support fund decreased. It was from 781,000 to 648,000. What does it mean?
It means that everything is better than the decline expectation to 727,000. However, the experts seem not so satisfied by the amount of jobless claim. They thought that on this March there are still 18.953 million of people who still needs the stimulus.
So, the United States employment recovery from the pandemic effect still requires many years to go. Many things have been raising since the end of last year. However, there are a million of people should recover to solve their real economic problem.
The increase of vaccination is hoped to become the start of the end for coronavirus pandemic effect. Furthermore, the US dollar is slightly increasing. That is supported by the technical and external factors. The data so far support a rally for that currency.
The Detail Increase of USD
The index of dollar increased by 0.32% to 92.821 in a sales session on Thursday. Besides the economic data release, the technical and worry about the COVID-19 in Europe also cover the bullish of US dollar. There are still some uncertainties so far in this case.
That is especially in a case of taking the position in the forex market. However, the development from the technical side is still supporting the USD to increase. Meanwhile, the economy recovery in a EuroZone was not going too smooth. It triggers something.
That makes the investors prefer for choosing dollar to Euro. The plan made by a Germany counselor, Angela Merkel to cancel lockdown in the Easter moment next week fails to increase the interest of market risk. Furthermore, the price of gold is also locked.
The price of gold is locked around $1720 this week. Just like what has happened along the week, the spot of gold is still trapped between the reversed power from the US Dollar which is increased by level and level. That is for about 92.70 as the highest level.
The Obligation Market Declined
The obligation market action which has been pushing the higher result has been decreasing this week. It is maybe as the result of the profitable taking risk by an obligation. That is especially for obligations which experiencing shorting in the market.
Meanwhile, the safe-haven offer to the obligation market may help to push the lower result. This week, the worry of the coronavirus spread in Europe and other areas are increasing. There is also a discussion in the United States about the company tax.
Those things make the risky assets are worse than before and that may help the obligation. If the obligation result continues to decrease, gold will move higher. The thing which may stop them is the stronger US Dollar that is happened continuously.
