Back
It became known when the US dollar will continue to rise
Experts believe that the main currency of the world will resume growth only after the increase in the level of public debt
Sep 3, 2021
1 min read
Anna BakkerNews analyzer

To do this, the US Treasury Department must withdraw $ 600 billion from the markets.

Let us remind you that since August 1, the US Minin has been unable to attract new loans due to the extreme level of the national debt.

In 2019, the public debt ceiling was temporarily canceled and the Ministry of Finance was forced to increase loans to compensate for the temporary collapse of the monetary volume. Such an event will lead to a contraction of USD liquidity and may provoke a strengthening of the dollar.

Experts predict that a similar event will take place in October this year. The Treasury Department is expected to withdraw about $ 600 billion in liquidity from the private sector.

If the placement of public debt coincides with the termination of the purchase of assets, the markets will be able to survive the euphoria of 2013-2014.

During this period, the Fed stopped printing new money after continuously running the printing press for more than 5 years. As a result, the US dollar reached its 13-year high and brought down all commodity prices.

However, some experts expect the US currency to weaken, such as Commerzbank. There is a possibility that the new mutation of the Delta coronavirus will weaken the economy and the Fed will probably have to rethink its rate hike plans.

Last Friday, the head of the Fed, Jerome Powell, said that this year may begin to ease monetary policy, but also noted that he was in no hurry to raise rates.

Now all traders are awaiting data on the US labor market, which will be published today, this data will serve as a signal when the announcement of the curtailment of the printing press program may appear.

High-quality analytics and the best trading service can be found at the top forex brokers from our rating.

Last article
Read other articles
Anna Bakker News analyzer
The dollar is growing and strengthening, the stock market fell due to fears of the bankruptcy of China's largest developer
Sep 21, 2021
1 min read
Anna Bakker News analyzer
New South African strain of coronavirus dubbed the Greek letter omicron plummets in markets on Friday
Nov 29, 2021
1 min read
Peter Janssen Market expert
99.99% of traders at the beginning of their path to profit constantly do the same actions and lose money over and over again until they make all the mistakes from this article
Aug 14, 2021
5 min read
Forex Expert Advisors for your Profits
Forex trading robots based on AI. Innovative trading technologies for a stable growth of your profits