The index of American dollar or USD step back from it’s highest position which occured for two decades. That level was reached last week, but now this currency is going to the level of 103.75.

This point was reached at 17 of May 2022 when this information or news was made. For your information, amidst this improved market sentiment, people decided to do a take profit action. 

It was especially after an announcement that Shanghai may end it’s lockdown and restriction due to COVID-19 case as soon as possible. This moment is almost close to the time when Jerome Powell will deliver his speech. 

In the other side, some analysts thought that market starts to move keys focus from a topic of inflation to the possibility of recession. Then, various data are becoming crucial right now. 

Lockdown and Restrictions Bring a Social Effect 

China released their economy data on Monday where that announcement showed the effect of lockdown taken by Shanghai and some other major cities in the country. A social effect then happened. 

That is why; it threatened the growth. Industrial production and also retail were not having a good growth either. 

The condition above make people aware of a possibility for a global recession. The news briefly made the Australian dollar, and a number of other pro-growth currencies melt away.

A brand new situation then reserved after a news appear that Shanghai didn’t find any new coronavirus cases for three consecutive days. That is why; restrictions and the limited social activities will be loosened. 

Yuan is not Declining Due to Volatility 

The end of lockdown in Shanghai may be dome at the beginning of June this year. Elsewhere, Christ Weston as a research leader said his opinion about overall condition which happened. 

He stated that dollar / Yuan was kind at-large mover from the G10 currencies so far. That currency moves quite good and at the end is able to relieve volatile situation.

That is why; this suspend the American dollar raised even for a while only. However, USD is still supported by a wider fundamental background just like what many people are predicted. 

The problem now is on the United States of America. That country is showing a better economic performance than many other areas in this universe. It shows a great power that it has. 

Market is Now Moving it’s Status to a Growth Position 

An economists lately said that now market is moving it’s position from an inflation story to growth story. He further thought that a lot of supports may come from the USD. 

The rally of dollar is calmed lately because the lack of new reasons for maintaining the Aggresive interest rate increase made by The Fed. 

America and it’s yield of obligation fallen too. Recession is a nightmare and cause for that. That sector also the trigger. It is now in a declining growth track record. 

However, although it is in that track, America still possible to win ahead of the situation happened. The US economy is like the prettiest horse appears in a glue factory. 

USD still Maintains it’s Multi-months and Multi-years Highest Position

It can be seen that this major currency is still in a highest level for multi months and multi year period against the other currencies. That is although USD was corrected quite big before.

That was in daily tradinh. The USD / CHF pair was lately passing through parity or level of 1000 some days ago. Today, that pair only decreased to the level of 0.9968.

USD is still stronger against rupiah and USD/IDR reached the highest record in a year around 14,645. The increasing food prices may be pressuring the developed countries economic growth.