The stimulus injection is a band-aid on a 3rd degree burn. Yes, it might slow down the infection ...but it is definitely not going to stop the gangrene to kill the patient in the long run.
Yes, everyone are spending money..provided by the government from people's taxes ....but it will not be the solution to create jobs and to boost the economy in the long run. In any way, the US have a much bigger problem.... which is debt. (Most of the people go bankrupt or they have to sell their assets to pay their debt.)
Topic: America stimulus support add strength to the dollar as investment increase - page 2. (Read 243 times)
March 24, 2021, 10:46:25 AM
March 24, 2021, 08:02:07 AM
Feast today, famine tomorrow.
Something weird is going on with that. It's not normal that they won't stop printing massively and the dollar is strengthening, though I guess it's due to 1) Pure short-term fluctuation/variability 2) Other currencies are printing a lot more. Let's not forget what's going on with the Turkish lira lately.
Something weird is going on with that. It's not normal that they won't stop printing massively and the dollar is strengthening, though I guess it's due to 1) Pure short-term fluctuation/variability 2) Other currencies are printing a lot more. Let's not forget what's going on with the Turkish lira lately.
But by the looks of it, the US stimulus package seems so much larger than any other government around the world is doing. Corona relief funds in Europe or Asia seems a lot smaller, which could be an explantion why people think that the US is going to come out stronger from the pandemic. Or the other explation is that the other currencies are just dropping harder than the USD. It might be just a relative strength compared to weaker countries. No matter what, it is still best to remain in cryptos and wait out this strom.
March 24, 2021, 07:09:18 AM
Circulation is being made thru printing money of high value like the dollar. Though sadly this tactic will only work for short term and would end horribly in the long run as it causes hyperinflation and further depreciation of the currency's value. So I'm not seeing this green moment as a sign of the times but the calm before a horrible storm. Let us see how the US government works on to comabt this in the next few months of 2021.
March 23, 2021, 04:13:02 PM
If the US dolllar is strengthening, its off of heavy buy volume on FOREX exchanges. Fiat currencies like the US dollar, yen and yuan are bought and sold on exchanges which can elevate or depress their value. They are very similar to cryptocurrencies in that way. The federal reserve could place large buy orders for the US dollar under their longtime QE (quantitative easing) program to quell fears associated with the dollar devaluing. That is one possible scenario for the charts OP posted. The fed has already amassed massive quantities of US bonds and other assets, it wouldn't be farfetched for them to buy the US dollar as well.
Stimulus spending and printing ever larger mountains of fiat to give people free money haven't often strengthened any currency through history. The end result of that policy is more likely to resemble the zimbabwe dollar or venezuelan bolivar at their weakest, than they are the US dollar at its strongest.
Stimulus spending and printing ever larger mountains of fiat to give people free money haven't often strengthened any currency through history. The end result of that policy is more likely to resemble the zimbabwe dollar or venezuelan bolivar at their weakest, than they are the US dollar at its strongest.
March 23, 2021, 03:17:29 PM
It is good to know that the stimulus added strength to the dollar and I also read yesterday or the day before is that the US dollars subdued by lower yields but I dont know the reason behind it.
I don't have much knowledge about the economy but the stimulus won't it affect the country's economy since they already have some debt to pay.
I don't have much knowledge about the economy but the stimulus won't it affect the country's economy since they already have some debt to pay.
March 23, 2021, 03:17:19 PM
OP, you're looking at a way to a smaller timeframe to actually be relevant.
The stimulus package isn't something that was discussed at 8 am, approved at 9, and money sent at 10, the whole deal happened over months and months, and if you spread the graphs of the pairs to a longer period you will se that the EUR/USD pair was 1.08 rather than 1.19 a year ago and 1.13 two years ago, so actually this rate is one of the worse apart form one period in the last 5 years.
The slight increase comes from the good news about the vaccinations and the fact that at this point another lockdown is clearly off the table, so people are expecting that soon the economy will start functioning normally, manufacturing will pick up, exports will do the same driving the need for $, the stimulus money can't have any positive impact on the exchange rate, more likely it can drive it down with a rise in imports.
The stimulus package isn't something that was discussed at 8 am, approved at 9, and money sent at 10, the whole deal happened over months and months, and if you spread the graphs of the pairs to a longer period you will se that the EUR/USD pair was 1.08 rather than 1.19 a year ago and 1.13 two years ago, so actually this rate is one of the worse apart form one period in the last 5 years.
The slight increase comes from the good news about the vaccinations and the fact that at this point another lockdown is clearly off the table, so people are expecting that soon the economy will start functioning normally, manufacturing will pick up, exports will do the same driving the need for $, the stimulus money can't have any positive impact on the exchange rate, more likely it can drive it down with a rise in imports.
March 23, 2021, 02:59:52 PM
That's actually the purpose of the stimulus and they seem to be not showing any clue when they're going to start. And after that, we might see the negative impact of it on the economy.
2) Other currencies are printing a lot more. Let's not forget what's going on with the Turkish lira lately.
Most of the countries are coping up with a recovery plan and mostly, they've the same plan of printing money to give aid for the response to the economic fall down due to the pandemic. 
March 23, 2021, 12:05:11 PM
Feast today, famine tomorrow.
Something weird is going on with that. It's not normal that they won't stop printing massively and the dollar is strengthening, though I guess it's due to 1) Pure short-term fluctuation/variability 2) Other currencies are printing a lot more. Let's not forget what's going on with the Turkish lira lately.
Something weird is going on with that. It's not normal that they won't stop printing massively and the dollar is strengthening, though I guess it's due to 1) Pure short-term fluctuation/variability 2) Other currencies are printing a lot more. Let's not forget what's going on with the Turkish lira lately.
March 23, 2021, 08:48:07 AM
The stimulus support by the America government seem to have started building more confidence in the economy as positive outcomes are being achieved and that is showing some green on the currency unlike it was last year but now, it seem the US economy is finding her fit into stability which is reflecting on the currency lately. Looking at the chart below, is obvious that the dollar is gaining strength and that is reflecting on dollar pairs.
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