U.S. Dollar Closes Week Recovered, Entities Closing
MARCH 13, 2020
The U.S. Dollar has recovered and advanced some this week, but at the cost of crisis in figuring out where the global economy will head from here considering the spread of the coronavirus.
Companies and schools are making their own decisions based on the uncertainty of when governments can declare the situation controlled and normalized. Stocks have panicked beyond anything seen before by these eyes, especially since it was in 1987. Every country is working on minimizing the threat and economic impact by implementing stimulus and easing measures.
The buck is dominant again in the face of recessionary pressures as investors do doubt the efforts will be enough to sustain economic stability. There is thirst for calm, but also for positive developments and there is a major shortage on that. Some equity indexes are even banning short-selling. Meanwhile, the U.S. is hopeful to announce a bill from Congress to mitigate the negative impact on American activity.
What to Watch Today…
- No major events scheduled for today.
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he Euro went back to its exact levels of March 5th, after having climbed as much as 3.2% this week. The swings make sense as a globe in trouble seek solutions and then dumped them. The carry-trade value of the Euro, as it is used as the denomination of many assets, saw it rise rapidly as the oil-price war looked to be more hurtful on the buck.
Nevertheless, things are bad beyond petroleum and immobility is great concern that certainly bodes poorly for union based on the ease of movement between nations. There is plenty more to come as countries figure out if they lock down or not.
Pound fell by 5.6% this week after the government worked on assuring the public the government will spend 30.0 billion and the Bank of England expanded easing and cut into the benchmark interest rate. An aggressive 50-point-basis cut was defended today as the Monetary Policy Committee met.
From here on out, we are gauging just how much employment will be affected by this in the next few weeks with most local government and entities advising people stay home and not participate in any large gatherings. The English Premier League has been suspended.