Ranko Berich (Monex Europe) | “After months of the greenback rallying on bad news as investors sought safe havens, it seems like the uniquely bad domestic COVID-19 situation has finally caught up with the US dollar. It is the end of the quarter, but today’s price action nonetheless has a feel of the dollar’s chickens coming home to roost.
via The Conversation | One important pillar of Hong Kong’s economy remains unchanged and outside of Chinese government control – its currency, which is pegged to the US dollar via a currency board. This could have significant benefits for the city as it tries to deal with pressing socioeconomic challenges. But this also requires more public spending from the special administrative region’s government.
Let us talk about the relation between the US dollar price of gold and the quantity of US dollar. In fact, one would think that it is, economically speaking, a rather straightforward relationship: All you need is to compare the supply of physical gold and the quantity of US dollar.
The Federal Reserve is more or less protected from the demands of political parties. But what about the influence from ‘special interest groups’ such as the banking industry on Fed policymaking? “There is hardly be any doubt that the Fed caters, first and foremost, to the needs of commercial and investment banks, ” says a report from Degussa.
Ofelia Marín-Lozano |The variations in the exchange rate, over short periods of time like quarters, sales performances or results expressed in euros which can lead to simple, erroneous conclusions. This is even more true in the case of a European company with a greater weighting in markets where the dollar is the currency of reference. That is to say in any market outside, if not the Eurozone, then at least Europe.
Draghi is nervous because the dollar has begun to fall, messing up his plan to withdraw stimulus from an economy which is increasingly more dynamic.
The US dollar was broadly stable over the past month, up against the euro and Japan’s yen but down against the New Zealand dollar and sterling. Elsewhere the Norwegian krone depreciated further, hitting new lows. The market appears to lack conviction in terms of the direction of the greenback.
Most G10 currencies declined further against US dollar ( USD) . However, analysts from AXA IM remind that “the greenback has lost some steam”, appreciating just 0.5% over the past month.
Could the yuan substitute the dollar and become the predominant currency? I would ask the following question: if you had some dollars, would you change them for yuan? No you wouldn’t, would you? We would like to demonstrate that the yuan is in no way a substitute for the dollar.