Market Data
August 21, 2020
CRU: U.S. Dollar Shifts into the Spotlight as Economic Forecasts Stabilize
Written by Jumana Saleheen
By CRU Chief Economist Jumana Saleheen from CRU’s Global Economic Outlook
Our global economic forecast has stabilized as our understanding of the economic impact brought on by the virus has improved. In August, there have been some offsetting changes across regions with the USA and China data a little stronger than expected and the EU a little weaker. This has allowed us to focus our overview on the impact the virus is having on currencies. The U.S. dollar initially strengthened when the virus struck, however it has recently lost most of these gains. This has led many to believe it is the start of a broader dollar unravelling. We do not think so. Instead we believe that the dollar will gain value marginally once the USA manages to bring the virus under control and Congress seals the deal on a second Covid-19 stimulus package.
