The US Dollar is on its way to note the best week in three months. That happened on Friday. It is supported by a trust which grows due to the economic recovery of the country. Many experts believe that it will be higher than other countries.
The index of the dollar touched its highest level in two months. It was especially in the Asian market ahead of the employment market situation. The numbers of nonfarm payroll are watched tightly by the investors. That is quite reasonable to take further action.
Furthermore, the greenback also has an impact on the highest level which was happened on Euro and Yen. The American economic condition is really strong. It is better than other countries globally. That becomes a good sign and step for that country.
What are the Indicators?
So far there are two indicators of why the economic situation there is higher. Those are the fast vaccination speed and employment growth. The ‘fight’ on the dollar strengthening today can be continued for several weeks in the future. It is not stopped here.
An analyst said that the view is darker since Europe and Asia zone is chasing the vaccination properly. Besides that, the monetary policy also shows that the Federal Reserve is so easy to limit the increase of long term US treasury.
The index of Dollar is floating a little bit higher and becoming 91,576 from Thursday. It touches the level of 91,60 for the first time. That happened since 1 of December last year. That index has been increasing this year and on the right track.
They are on the weekly increase track for about 1.1%. It is the best one since 1 of November and built the increase of 0.3% at the past week. It was informed before that greenback is supported by the long term United States treasury.
The Voting Is Still Done
Furthermore, the greenback development appears because the market participants are positioning themself for the huge fiscal expense. Democrat in Senate is ready to make a marathon voting session. What is the aim of that vote?
In fact, everything is done to aside the opposition Republic Party due to the COVID-19 proposal which worths $1,9 trillion from Joe Biden. Investors and analysts are now considering the power of the dollar as the main currency.
They want to know whether the power of the dollar this year is a position adjustment for a while or not. It is especially after the decline of 7% for the dollar index in 2020. That could be the long-term shift from the USD pessimism.
The potential of dollar decline that must be closed is so much. It is especially to Yen where the hedge fund has been grouped the bearish bet. That becomes the biggest one since 2016. On Friday, Dollar was moved to 105,55 Yen.
The Vaccine Updates in Europe
Elsewhere, Euro is mostly in a flat curve. It is at the level of $ 1,1952. Before, that currency was decline to the level of $ 1,1952. For your information, that was the unseen level since 1 of December last year or two months ago.
How about the vaccine updates in Europe? The Westpac strategy expert stated that the European vaccines are faster in this quartal. The good thing is that it is supported by the Fed commitment due to the monetary policy.
That policy is not tight. That is why; this situation may put Dollar in an under pressured position again soon. Back to vaccines, there are some brands that are used now. They have the proper effectiveness based on the recommendation from WHO.
