The US dollar has been on the ground for most of the second and third quarters, and only in the last month has there been a stronger boost to its growth. In the past four weeks, he has climbed to the highest levels against his main rivals.
In the last week, almost every major world currency has lost against the US dollar. Investors are anxiously awaiting the latest data from the U.S. labor market, which is expected to be released by the authorities as early as this Friday. It is precisely the development of US unemployment that will depend to a large extent on how the Federal Reserve reacts.
The Fed is watching with a grinding of teeth as US inflation reaches multi-year highs, but unemployment is still not falling to pre-pandemic levels. This has been the main reason why the Fed has not yet tightened its extraordinarily loose monetary policy.
But it is not only the Fed’s actions that affect investors. Some nervousness was brought to the market by the de facto collapse of the Chinese development company Evergrande, which may have an overlap across China’s borders. Given that the dollar tends to grow rather strong, it can be assumed that investors believe in the robustness of America’s economic recovery.
