US Dollar Forecast Nov 2020
Volatility in the US Dollar will start to subside now that the US Elections is coming to a close. We expect the overall direction of the USD to establish in the coming weeks.
We forecast US Dollar bullishness over the next 6-month cycle as the US Dollar gains support on upbeat economic conditions. Furthermore economic stimulus from the US government will sustain this economic growth. Stimulus is much alike to the quantitative easing programs of the early 2010’s.
We are seeing strong gains in employment with the unemployment rate down to 6.9% (November release) from 7.7% the previous month. NFP’s released an upbeat figure of 638k jobs added to the economy over October whilst Manufacturing PMI’s rose sharply.
Gaining employment leads to more spending in the economy which sustains job growth, manufacturing activity and services growth. These factors combined will sustain high GDP growth.
With Biden likely to win the election and his promise to raise taxes, this growth will ultimately be capped. We should see the US Dollar rally to pre-Covid19 levels against the major currency pairs before any significant pull backs.
A second wave of Covid19 is becoming likely over the festive season and could shake markets to produce another black swan. We therefore urge caution regarding USD longs.
Read more at https://alloutforex.com/us-dollar-forecast-nov-2020/
We forecast US Dollar bullishness over the next 6-month cycle as the US Dollar gains support on upbeat economic conditions. Furthermore economic stimulus from the US government will sustain this economic growth. Stimulus is much alike to the quantitative easing programs of the early 2010’s.
We are seeing strong gains in employment with the unemployment rate down to 6.9% (November release) from 7.7% the previous month. NFP’s released an upbeat figure of 638k jobs added to the economy over October whilst Manufacturing PMI’s rose sharply.
Gaining employment leads to more spending in the economy which sustains job growth, manufacturing activity and services growth. These factors combined will sustain high GDP growth.
With Biden likely to win the election and his promise to raise taxes, this growth will ultimately be capped. We should see the US Dollar rally to pre-Covid19 levels against the major currency pairs before any significant pull backs.
A second wave of Covid19 is becoming likely over the festive season and could shake markets to produce another black swan. We therefore urge caution regarding USD longs.
Read more at https://alloutforex.com/us-dollar-forecast-nov-2020/
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