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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    Where is the dollar heading for this year?

    Rocky
    Rocky
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    Posts : 267081
    Join date : 2012-12-21

    Where is the dollar heading for this year? Empty Where is the dollar heading for this year?

    Post by Rocky Thu 30 May 2019, 3:16 am


    [size=32]Where is the dollar heading for this year?


    - 9 Hours Ago
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    Where is the dollar heading for this year? %D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A7%D8%B1
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    Financial institutions and financial analysts expect the dollar to rise further this year, taking advantage of the geopolitical and financial turmoil that threatens the world, increase the risk of speculators in exchange markets, and at the same time weaken the major green card rivals such as the euro and sterling And the Japanese yen. According to British currency expert Tom Hollian in his exchange market analysis of the Pound Sterling website.
    Economists see these conditions as good for the dollar, the biggest and most important safe haven for investors to protect their wealth in times of crisis. Despite expectations that the US Federal Reserve will ease monetary policy and possibly reduce the US interest rate this year, the investment bet on dollar strength continues in the exchange markets.
    Interest rate cuts usually work against the strength of the dollar. However, exchange traders are building their accounts as the positive effects of the strength of the US economy will overcome the negative effects of interest rate cuts, especially at a time when the risks of European and Asian economies are increasing.
    The data supporting the strength of the dollar is the strong US growth rate, which is expected to show data to grow by 3.1% this year.
    This rate is much higher than the 1.1 per cent growth rate in the euro zone, according to the latest review by the European Central Bank, and in Japan, 2.1 per cent, according to official figures from the Ministry of Finance.
    The second factor that supports the strength of the dollar is the drop in America's unemployment rate to its lowest point in history. The third factor is the tax-trapping policies that penalize American companies investing abroad and support the migration of US and foreign capital to the United States. This migration contributes to increasing global demand for the dollar.
    The fourth factor is the strong recovery of the Wall Street market compared with the global financial markets. Investors in the US capital market in 2017 earned 25% of their investments. But the most important factors supporting the strength of the dollar are the geopolitical and financial risks that threaten its rivals.
    On the single European currency, the euro, which is called the eurozone currency and includes 19 countries, the dollar benefits in its exchange rate from the many risks surrounding the unified trading area. In this regard, the European Central Bank (ECB), in its semi-annual "Financial Stability" report this month, says the risks to eurozone financial budgets are rising on corporate debt and sovereign debt levels. The euro zone's debt is estimated at 86.1 percent of the region's GDP, according to Eurostat.
    The yield on Treasuries in the euro-zone countries continues to fall as German bunds' 10-year Treasury bills fell 13 basis points to 6.5 percentage points, according to ECB data. German bonds are an "item" accepted by investors in Europe and measure the attractiveness of foreign investors in the euro area.
    In contrast, the risks are increasing on government bonds in Italy and Greece, and even French bonds are facing marketing difficulties because of the popular progress of the extreme right-wing front led by Marin Lupine in the European Parliament elections and the continued movement of yellow jackets.
    According to a European Central Bank report released this month, any rise in the cost of European debt will lead to a severe turmoil in European financial markets. This is why speculators in the exchange market are betting that the ECB will not raise interest rates very soon, but will extend the duration of the government bond purchase program. This factor increases the expectations of the rise of the dollar against the single European currency "Euro".
    In its latest report, the ECB expressed concern about investors' flight from weak euro zone bonds.
    As for the exchange rate of the dollar against sterling, analysts expect that the dollar will benefit from the chaos in the course of the "Breakst", following the resignation of British Prime Minister Teresa Mai. According to Sterling Sterling, a British currency specialist, who will succeed May as Prime Minister and how he will deal with the BRICEST file will determine the Sterling exchange rate for the year.
    The yen may be the only major currency expected to rise against the dollar in the short term. The yen rose to a two-week high against the dollar on Wednesday as fears of further escalation in the US-China trade dispute prompted investors to turn to assets deemed safe.
    In terms of trade warfare, investors are betting that the US administration continues to encircle China at two levels: blocking trade expansion through the so-called "Belt and Road Initiative" and secondly through the administration's fee for goods worth two hundred billion dollars. 
    So far, there is no risk that China will use a currency-cutting weapon or the sale of US bonds, which the United States fears.
    In this regard, the Treasury Department said in a report issued Wednesday evening that China is not manipulating the value of its national currency, appeal to the Asian giant to take the necessary steps to avoid further reduction of the yuan.
    According to the AFP, the ministry said in its semi-annual report: "Although China does not disclose its interference in foreign exchange, the Treasury Department considers that direct intervention by the People's Bank of China" central bank "was limited last year. 
    The value of the Chinese currency fell by 3.8% against the dollar in the second half of 2018 and by 8% in the whole of 2018.
    China allows the supply and demand to play its role in determining the value of its national currency, but it is known to intervene to keep the yuan within the margin of a certain pulse, which prompted the United States in the past to be accused of manipulating the value of its currency.
    The US Treasury Department is evaluating all of America's trading partners, whose trade balance in goods and the United States account for a surplus of over $ 40 billion a year.
    The ministry has put nine countries including China on the "watch list", but stressed that none of these countries do not manipulate the value of their national currency for unfair gains. The nine countries are China, Germany, Ireland, Italy, Japan, South Korea, Malaysia, Singapore and Vietnam.
    The Beijing-Washington trade war has raised concern in financial markets, which fear China will use US Treasury bonds as a weapon to counter tariffs imposed by Washington on Chinese goods. China's sale of bonds affects the value of the dollar, as it increases the supply of dollar-denominated instruments. But many money experts rule out this possibility, because China will be the biggest loser.
    Experts, previously published by The New Arab, have suggested that the United States may consider a major sell-off of US Treasuries by China as a step that threatens its national security and may therefore freeze Chinese bonds.
    China's bond holdings in late March totaled $ 1.12 trillion, up from $ 1.32 trillion in 2013. The world's second-largest economy has about 7 percent of the current US $ 16.18 trillion in public debt, its lowest share of 14 percent. Years.



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