US DOLLAR PRICE FORECAST: BULLISHUS Dollar soars as market-wide liquidation places a premium on moneyIncoming financial news-flow
US DOLLAR PRICE FORECAST: BULLISH
- US Dollar soars as market-wide liquidation places a premium on money
- Incoming financial news-flow unlikely to alter risk-off narrative
- Peak in coronavirus unfold wanted earlier than stimulus could be efficient
The US Greenback has emerged as a definite beneficiary of the market-wide panic triggered by the coronavirus outbreak. As complete nationwide populations go to floor in a bid do include the pandemic, financial exercise has taken a crippling hit. Not surprisingly, that has severely eroded the outlook for any asset positively geared to international development, be it shares or pro-cyclical commodities like crude oil and copper.
This has impressed a wave of promoting throughout the market spectrum. Not surprisingly, the Buck’s unequalled liquidity has made it significantly enticing on this atmosphere. That acts as a dampener on volatility and makes the Greenback a conveniently versatile automobile for subsequent reinvestment every time the turmoil eases. Over 80 % of world financial transactions are settled in USD, in line with the BIS.
US DOLLAR TO LOOK PAST ECONOMIC NEWS-FLOW, FOCUS ON CORONAVIRUS
Wanting forward, markets are more likely to stay centered on policymakers’ efforts to backstop the worldwide financial system amid the continuing disaster. A wave of financial and monetary stimulus measures has been unleashed. Central banks round…