US Dollar jumps as China’s imports plunge sparks global recession fears and weaker Yuan DollarIndex Macroeconomics UnitedStates SEO
r Index . Meanwhile, this Tuesday the Greenback is back in favor after Chinese import numbers plunged even worse than during the pandemic. This triggers someOn the economic front, a chunky calendar includes the National Federation of Independent Business Optimism Index and the TechnoMetrica Institute of Policy & Politics Economic Optimism Index .
Around 12:30 GMT, the Goods and Services Trade Balance for June is expected to bear a slightly smaller deficit, moving from $-69B to $-65B. The US Goods Trade Balance will come out as well and was at $-87.8B with no forecast pencilled in. The Japanese Topix index saw the closing bell coming in right on time in order to still close this Tuesday with a 0.34% gain. The Chinese Hang Seng Index declined near 2% on the back of those weak Chinese import numbers. European and US equities are being dragged along as global recession fears are creeping back into the markets.
For the upside, 102.31 remains a key level to watch in the form of the 100-day Simple Moving Average and needs to see a daily close above in order to be turned into support going forward. Even should the DXY be able to break and close above there, US Dollar bulls are not out of the woods yet, with the 55-day SMA just above there at 102.48. Two key levels need to be broken and closed above in order to avoid any large pullbacks before targeting 103 to the upside.
It is a non-standard policy measure used when credit has dried up because banks will not lend to each other . It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
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