The rally in the US dollar is gathering momentum in the new week

With the start of the new week, its earnings increased against all major currencies. Despite the first month since April that saw negative job growth, increased activity in the manufacturing and services sectors, along with last month’s wage growth, brought renewed demand for the US dollar. Optimism about vaccines is protecting the economy from a winter slowdown. Treasury bonds are on the rise and interest rates {(23705 | 10-year bonds}} are at their highest levels since March. All this indicates that investors are starting to believe that the central bank is warning and the economy is recovering a little faster. In fact, the chairman said Federal Reserve Rafael Bostic The central bank is not bound by any pattern and may change its position, it is clear that it is too early to expect a change, but when the recovery occurs, the United States will have one of the strongest.

For the time being, the greenback remains a safe haven amid a selling trend that has pushed all the major currencies lower. The US currency has also been greatly overvalued, with stocks rising to record levels. A natural correction was inevitable, especially as investors are looking forward to Friday in the US. Higher wages and prices, and a weekly pick-up in chain store sales, indicate that the report will be fueled by the massive shopping for Christmas at the end of the year. The good numbers will support the dollar’s recovery.

Australia was the worst performer with the currencies with the highest growth rates experiencing the strongest declines. Traders ignored strong retail sales and rising inflation in favor of risk aversion. Chinese inflation data was also more positive than expected. Meanwhile, the drop in the rate was supported by lower prices, lower prices last week and employment reports. As there are no major economic reports from commodity producing countries this week, risk appetite will drive demand for these currencies.

The sell should win {{1 | {0 | euro}}} has had a momentum as the introduction of a new quarantine in Germany and the rapid spread of the virus in the United Kingdom impede expectations for these countries. Tight restrictions for all 16 federal states went into effect today to curb the outbreak in the country. This includes reducing the number of private meetings, expanding travel restrictions in the country, and making two negative tests mandatory for those coming from high-risk areas. Most of the restaurants, bars and other leisure facilities will be closed at least until the end of January. These tighter safeguards will undoubtedly delay the country’s economic recovery and thus reduce the appeal of the euro.

Meanwhile, the chief British physician has warned that the next few weeks will be the most difficult. The death toll has reached a record high, as more than 30,000 people have been hospitalized, and the situation could rapidly worsen as the country struggles to contain the spread of the virus. Government officials are demanding tougher compliance with the restrictions – quarantines, which translate into less economic activity. Britain was not as successful as France and Spain in tackling the second wave.