Currency Pairs of USD, here lies the Spotlight:
This week spotlight is on Dollar again. Forex traders and investors have turned their attentions again on currency pairs of USD. There are several factors that have caused this situation. We can consider Federal Open Market Committee meeting’s minutes as the first factor in this regard. Traders are over-selling USD as compared to other currencies.
The significant discussion of Fed Chairman Powell about the economic condition is a prominent event of the first week of October. Sum up of the discussion is that the Fed has agreed to tolerate higher inflation. Fed has made such a decision to ensure smooth economic growth. Obviously such a decision and higher rate of inflation is likely to affect USD.
Currency pairs of USD:
Secondly there are different economic reports related to labor and their working conditions. These reports expose the facts that there is noticeable improvement in employment sector. This positive change also becomes an affecting and influencing factor for USD. It is further going to positively affect the price of dollar. As far as the currency pairs of USD are concerned, the most favored one is USD/JPY. You can expect that the very pair will enjoy a state of overbought in the next week as well. USD is most volatile as compared to other currencies in its currency pairs.
The price of a currency is influenced by many economic factors. But we can regard the Presidential Election as the most significant one. Recently the price of USD is stable. But the Forex traders are attracted towards the currency pairs of Dollar. Traders now must pay heed at any political remark of the Trump or Biden to witness any change in the market sentiments. No doubt the elections always have lasting impact on the value of USD.
COVID-19 played havoc with the lives and the economies worldwide. The currency pairs of USD is no exception. Recently the news of the development of the vaccine for COVID-19 has again excited the economic activities. If there are convincing results of the vaccine then it is definitely going to further affect USD in the near future.