The dollar led the gains on Tuesday, touching a 4-week high in its trading on the Forex market. As concerns of investors and traders turned away from the U.S. currency.
It is not news to us how much the pandemic has affected the United States, and therefore, its currency. As such, the adverse Corona Millionaire trend of the Dollar has remained present in the market.
And while we are now seeing an improvement, the question that arises from this is: Will these dollar gains be sustainable?
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Dollar Reaches Record High as GBP Falls
On the part of the United Kingdom and the British currency, the image remains tense. The Brexit is the stumbling block of the British economy.
And after the resignation of the head of Britain’s legal department on Monday, concerns once again hovered over the future of the pound.
Thus, at the time of writing, the pound fell to a four-week low against the dollar and dropped more than 1.4 percent to $1.2969.
The dollar reaches a high in the Forex market, while the pound falls again because of the Brexit.
Coupled with the concerns of the Brexit, the fall in U.S. stocks caused Forex market investors to flock to the dollar. Allowing for this upward performance of the American currency.
However, it is not all good news, as analysts at Capital Economics say that the dollar’s gains may be temporary. They expect the world economy to continue to recover from the impact of the coronavirus.
As a result, riskier stocks and currencies will gain more traction from higher interest rates. As could be the case with the Australian dollar, according to Reuters‘ analysis.