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After their pitfalls earlier this year, crude and gold prices are finally prepped to go up for the rest of the year. More countries around the world are beginning to reopen more parts of their economy, but most of us are still locked at home with uncertainty. This provides the perfect balance between resorting to safe havens like gold and rising demand for transportation-centered commodities like crude. In turn, the US dollar is expected to see lowering gains against gold, probably even through the next few months. All these dominoes into investors rooting for the Indian rupee. Still, be careful: although the Federal Reserve also announced a “tremendous” hardship led by the coronavirus throughout the year, the greenback also offers a safety net amid the unlimited quantitative easing program implemented earlier in the COVID-19 economy. The pair’s path will have to depend on upcoming figures that stimulate either economy for the long-term, but now, the rupee will see green.
Although Sweden still continues its no-lockdown approach, killing hundreds of people a day, the country refuses to shut down. This was most of the reason why the Swedish krona saw consecutive gains against the US dollar these past few weeks. However, the Federal Reserve’s announcement to keep its interest rates intact is a sign that it believes that its recent aggressive movements to stimulate the economy is going to be enough, at least for a year, while they’re still open to the idea of implementing other stimulus packages within the same time frame. Moreover, its crude oil inventories finally reached down since it blew the glass ceiling earlier this year. If the world continues its recovery through easing lockdowns and resuming businesses, the US is expected to see itself reign once again. Unless Sweden sees bigger news in coming sessions, its currency will tread below the US dollar for quite a while.
The USDILS pair recently slumped to its late October resistance levels, but that’s much less likely to continue now. Israel’s ironic decision to spend its Independence Day, April 29th, in complete lockdown will be the telling sign its economy might not be seeing any green lights anytime soon. Local police increased activity and set up 40 checkpoints across the country despite news that coronavirus cases are going down. Meanwhile, the Federal Reserve promised to keep its interest rates at 0% to 0.25% percent until it regains confidence from businesses, employment, and financial stability goals, which the chair Jerome Powell admitted would take some time. It also kept its options open for other stimulus packages in the near future, but didn’t feel the need to do so yet. In the meantime, it will continue its unlimited quantitative easing and government bond-buying programs to help businesses to keep their companies open, post COVID-19.
The Federal Reserve promised to keep rates at 0.00% as per its policy meeting today, stretching to maintain the figure for a year and perhaps much longer. The meeting also affirmed the agency’s unlimited quantitative-easing asset buys until its economy goes back on track to achieve its maximum employment and stability goals. Fed chair Jerome Powell said they would continue to act aggressively to ensure a fruitful economic recovery, but noted that it will take some time to achieve. Powell’s series of unprecedented programs to help its economy still pleases the markets as the dollar keeps treading above its counterparts from around the globe. Meanwhile, although Poland is still on its way to fully reopen more of its economy since early April, the European Union’s legal launch against its government might get in the way of progress. Further probes could push the zloty down in the long run, thrusting the greenback further up.
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