Summary:
- The US Dollar's resilience in the current economic world.
- The future of the greenback is unknown.
Read next: (DOGE) Dogecoin and Musk - How Elon Musk Has Single Handedly Created Price Changes In This Memecoin.
Whilst almost all other assets on the stock market have lost value this year, there is one asset that has done well; the US Dollar.
Since the start of the year the USD has strengthened continually against most other currencies, this is demonstrated in the graph below, where we see the gradual strengthening of the US Dollar over the past five months.
This year in the stock markets has been challenging, with the conflict between Russia and the Ukraine, the adverse weather conditions all over the world, the lockdowns in China as the Chinese government works toward the zero-Covid goal, the rising inflation and prices, the concerns over a looming recession and more. Despite these factors, the US Dollar has still seen strength, this indicates the confidence that market participants have in the US economy to overcome these challenges.
Where the currency will go in the future is uncertain, the volatility of the forex market is always keeping investors on their toes. The next big possible turning point is the U.S CPI report due on Wednesday, this will indicate whether the hawkish fed have been successful in their fight against rising prices and inflation.
EUR/USD Price Chart
Read next: Shell (SHEL) Stock Price Soars Along With The Rest Of The Industry.
Sources: finance.yahoo.com
