Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
coronacrisis
Analytics

Analysts: how the coronacrisis has changed the positions of major currencies

12.08.2021
2 min read

Coronacrisis and its impact on the dollar and euro

The pandemic that swept the planet last year changed traditional processes and introduced new trends. The world is still only adjusting to them, but it is already clear that in a number of segments the situation has changed dramatically. For instance, the coronacrisis has shown weak sides of the dollar, so many analysts recommend investing in euros. Also buying currencies of raw-materials countries is a promising way to preserve and increase capital. This claim is based on the principles of global economic recovery whereby countries need more raw materials and this leads to the growth of demand for them.
According to analysts from the investment company Univer Capital, the Australian dollar is an interesting option. Experts note that the world’s way out of the coronacrisis will be carried out at the expense of both strong and weak currencies. Therefore, do not expect any one currency will show a huge strengthening. Moreover, it can lead to a decrease in the competitiveness of the economy of a given country, which nobody wants.
However, the United States clearly controls the processes that take place in other countries and their currencies. A striking example is China, where the yuan is showing excellent dynamics of strengthening. In case the currency weakens considerably, the U.S. may impose sanctions, arguing that there is a risk of currency manipulation.
Therefore, there is no reason to talk about a tangible increase in activity on currency markets. So far, countries are interested in weak money, but are limited in their actions due to pressure from the U.S.

coronacrisis

A separate topic is the growth of the euro, which only last year showed a strengthening against the dollar by about 25%. And according to forecasts, this trend will continue in the near future. The reason for this situation on the market was the pandemic, which caused serious damage even to the leading economies in the world. Europe is no exception; its GDP has fallen by 7.2%, but at the same time the Euro remains one of the most reliable currencies of G10. Experts blame this on the aggressive policy of the U.S. which has increased the deficit in the country’s budget as a result of the introduction of various measures to stimulate the economy. Despite such mechanisms to maintain the market, the EU has managed to strengthen its currency. Now many investors see it as a more reliable asset than the dollar.
Another promising option are the yen and the Swiss franc. They have a stable exchange rate and can be seen as a less risky investment. That said, it pays to evaluate all the risks associated with both the dollar and the euro, and to understand that the situation can change.

Tags: Analytics
0
Previous Post Types of depositary receipts: overview of instruments for acquiring shares Next Post American Water Works Company: largest U.S. water service provider

You Might Also Like

Goldman Sachs Bank
Analytics
Goldman Sachs made a forecast for the S&P 500 Index for this year
28.06.2021
long-term bonds
Analytics
How attractive are long-term bonds: the opinion of analysts
28.07.2021
Reasons for rising aluminium prices
Analytics
Otkritie Broker analysts: expect aluminium prices to rise in the long term
05.11.2021
Analysts named
Analytics
Analysts name investment options during the third pandemic wave
28.02.2022
Chaslau Koniukh
Analytics
American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.
17.08.2020
time to buy
Analytics
Analyst Victor Dima: why it’s time to buy stocks of Chinese companies
14.05.2021

Popular Posts

  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Popular Posts

  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Ingeborg Mootz: a woman who became a stock player at the age of 75
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics