In 2020, there have been many ongoing issues around the world. People have witnessed the growing tension between the United States and China. The Covid-19 pandemic has been another aspect that has affected the forex exchange market. Here are some helpful things you need to know about the lows of the dollar on the currency exchange market.
United States Dollar – USD
Currency exchange charts indicate the lows of the dollar in recent times. When you compare a US dollar to the euro, you will realize that the dollar is low. The Australian dollar and the Canadian dollar are also weak due to Covid-19 pandemic. That means this pandemic has had a massive effect on currencies.
After a two-day meeting with Fed, Federal Reserve Chairman Jerome Powell had to address a press conference. The forex exchange market through to 2022 is expected to be zero. If any deviation occurs, it might bring significant support to the US dollar. However, people have high expectations that the rate will not change significantly until 2022.
USD/GBP has been on the rise in a new week. During the Asian session, it peaked up to 1.2864. however, the pound needs to be watched cautiously over time. The Brexit talks might affect the pound. However, when an agreement is reached on the Brexit negotiations, this could end uncertainties surrounding the GBP in the forex exchange market.
The Australian dollar has been on the rise against the US dollar. The approval of the fiscal policy by the European Union Leaders and the Australian Government became the catalyst. That has led to a sharp increase in the Australian dollar against the US dollar.
Many things have been taking place around the world in 2020. The USD is losing its value in the market due to trade tension developing between the US and China. Moreover, the Covid-19 pandemic has played a significant role in the decline of currency value.