The USD index witnessed a slight increase during trading this week, affected by the US Federal Reserve decisions regarding interest and monetary policy, in addition to developments related to the US stimulus package and the emerging Corona virus, and the following are the most important influences on the dollar’s movements this week:
The dollar is affected by Corona virus developments within the United States
The US dollar is still negatively affected by the outbreak of the Corona virus in the United States, especially with the high number of infections and deaths with the Corona virus inside the country, and the monitoring of a new strain of the virus in the United States, as the health authorities in the United States announced that the death toll in the United States has so far exceeded 425 thousand people , According to data from Johns Hopkins University. Thus, this January becomes the highest month in which the United States recorded death rates due to Corona, and until yesterday, it reached about 79 thousand deaths.
At the same time, the number of cases in the United States reached about 25.4 million, which represents a quarter of the total number of infected cases in the world, amounting to about 100.3 million injured. These developments increase fears about the survival of the health crisis for a long time and its negative impact on the US economy, which prevents the rise of the US dollar.
Corona – The United States records the largest death toll this January
The US Federal Reserve decides to keep monetary policy unchanged
The dollar was positively affected this week by the decisions of the US Federal Reserve regarding monetary policy, as the US Federal Reserve issued its first meeting in 2021, last Wednesday, its decision on interest, as the Monetary Policy Committee in the bank announced keeping the interest rate unchanged to stabilize at levels of 0.25% , In line with market expectations.
Live coverage: US Fed Governor Jerome Powell’s press conference
The US fiscal stimulus package negatively affects the dollar
Developments related to the new US stimulus package are still preventing the dollar from rising strongly, as positive developments around the stimulus package always have a negative impact in the short term regarding the dollar, and the latest developments related to the stimulus package are the statements of Shack Schumer, leader of the Democratic majority in the US Senate that The Senate will work on the American stimulus package as of the beginning of next week, and Schumer assured that the situation needs to pass a stimulus package as soon as possible as the alarm bells are ringing around us, and that the Democratic Party will continue on this path even if the Republicans do not agree to the new stimulus package. .
US lawmakers remain divided over the stimulus package
During this week, the dollar index, which measures the performance of the US dollar against about 6 major currencies, rose by 0.32% compared to last week, and during the last hour, the USD index reached 90.32 levels, with a daily increase of 0.02%.
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