The Dollar continues to fall in the Forex market, maintaining a negative performance, meeting analysts‘ projections.
August is just around the corner, the pandemic continues in many parts of the world and the Coronavirus continues to rage. However, the effects on the economy that are beginning to be seen globally are the late result of previous months.
While the American currency is trying to get back on its feet, multiple obstacles still await it in the coming months.
The Dollar Doesn’t Seem to Be Getting Any Better.
Although many inexperienced traders saw the slight rise in the U.S. currency as a good omen for an early improvement, expert traders and Forex analysts did not bet on such behavior. Rather, they kept in mind their vision of a free-falling dollar.
And while the dollar rose slightly on Friday, the currency has remained on track for its biggest monthly decline in a decade.
Analysts say the dollar’s performance is due to concerns that the rise in COVID-19 cases could slow the U.S. economic recovery.
Confidence in the dollar was further shaken after Donald Trump on Thursday raised the possibility of delaying the Nov. 3 presidential election.
The Dollar continues to be in free fall in the Bitcoin Cycle market, maintaining a negative performance.
The dollar held on to its gains after data showed on Friday that consumer spending, adjusted for U.S. inflation, came out of the deep hole it fell into in April.
However, the dollar remains in free fall and below its pre-pandemic level.
U.S. GDP Falls to Catastrophic Figures
On Thursday, the terror of the world’s economists became a reality as the anticipated Gross Domestic Product (GDP) data showed a 32.9% contraction in the U.S. economy.
This is a scenario never before seen in the U.S. economy. This is the fastest rate of contraction since the Great Depression.
This event is already beginning to show its effects on the American economy. And the truth is that the effects are not at all positive for the dollar.
U.S. GDP falls to an unprecedented level
Dollar quotation to date
At the time of writing, the dollar index was trading at 93.365, showing a clear free fall. On Friday morning, it slid downward to 92,539, its lowest level since May 2018.
The dollar remains in free fall in the Forex market, meeting the negative projections of analysts.
However, as the rhythm of the markets is not in line with the figures of the world economy, the dollar recovered a little to trade at 0.35%.
It has fallen more than 4% in July, which would be the largest monthly fall since September 2010.
And most of the fall occurred in the last 10 days, as new cases of Coronavirus emerged in several US states.
From what we have explained above, it seems that the dollar is far from recovering.