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US Dollar Rises, the Risk Sentimen Shaken

by Didimax Team

The US dollar was rising higher. That was happened on early sales in Europe, especially on Friday. This condition made safe heaven is on the order because the risk sentiment was hitted. That was happened on the back of equity market shock.

Based on the data, the US dollar rose for about 0.3% and in the 90,690 position. Then the increase was added 0.6% on Wednesday. Elsewhere, the USD / JPY also increased for about 0.3 %. It was in 104,50 position several days ago.

Based on the data in the global market, several currency pairs were moving as well. That was happened on the GBP / USD, EUR / USD, and many more again. The reasons are varied such as the extended lockdown because the coronavirus pandemic.

 

The Data of Some Currencies

From the market data, It is known that most pairs are moving. The GBP / USD declines for about 0.1% and it becomes 1,3708. In the other place, the EUR / USD is also slipped down for 0.2% and it is in the $ 1,2102 level.

The same trend also happen on another pair, especially the one which is quite sensitive to the risk. That pair is the AUD / USD. It declines for about 0.3% and it is in the 0,7656 level. Basically, the moving situation is also happened on another aspect.

One of them is for sure the stock. The US stock was declined sharply in a morning sales on Friday. The main equity index of Wall Street was going through its worst week. It was counted since the end of October last year.

Market is related to the volatility. That condition has been pushing the safe-heaven demand, especially for the America currency. The global market was still moving right now. Many people predict that it may happen for some months.

The US Economic Data Release

Greenback is supported by so many factors. One of then is the United States economic data release some times ago. That data is looked so positive. For your information, the jobless claim for the early week was decreased more than the expectation.

Meanwhile, the fourth quartal of GDP was slower sharply, but you could say that it was still positive. It grows in the yearly level and the amount is for about 4.0%. Some analysts thought that the economic sector is still continue to keep going.

The predicted time is one or two months in the future. However, the situation globally may be better with the vaccinations schedule and the economic which is opened again. Those are the examples of the positive progress during this pandemic.

Because of that progress, people and the market participants may see the growth reaches its multi decade condition. Vice versa, the Euro zone economic may be decreased again in the first quartal due to the tight lockdown in some places.

The France Economic Contracted

Based on the data, the economic in France was contracted again in the last quartal last year. It was shrinking 1.3% in the last three-year period in 2020. The situation happened after they were increasing 18.5% in a quartal before that.

It is especially when they did a strong rebound after the first lockdown. However, the Spain GDP rejects the decline expectation by growing for about 0.4%. The bearish sight for 2021 has been built by some aspects. The first is a policy from Federal Reserve.

The second is because the synchronized global healing. That gives an alternative which is really interesting outside the America. Investors are now waiting for the fiscal package release from the newly elected United Stated president, Joe Biden.

Based on the information, the final amount of that stimulus will be not as huge as the plan. It means that the package may be less than $1.9 trillion. The situation shows that there will be less fund for dollar which needs to solve.