The US economy stumbles as the value of the dollar declines; Gold recovers

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The market reported on Friday that the US economy is stumbling as the dollar retreats, which has allowed gold and other global currencies to improve in value. It has also been a hectic week for many retail sales figures.

In a sudden turn of events, the greenback began to retreat from its recent high. The US economy started posting positive numbers after the Treasury Department announced that the Federal Reserve was doing well. Experts are speculating on this low a day after the dollar’s value rose. Many believe it is because the Feds have refused to infuse the market with the necessary stimulus. Although the Fed expressed concern about the state of the US economy, it did not give any new stimulus to the market, which resulted in a significant drop in demand and stocks of the US dollar.

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The Consumer Sentiment Index presented by the University of Michigan has shown a downward trend in retail sales in the United States since August.

After the Fed spoke out against any new stimulus, the value of gold rose to $ 1,950. However, the commercial value of gold is still lower than it is used to. Experts believe that the value of this precious metal will fluctuate depending on whether or not there is another round of recovery in the US economy.

Congress is still deliberating on fiscal stimulus plans. Although all parties and the White House believe the country needs another round of stimulus, the delay is because the two sides cannot agree on a plan. However, a bipartisan caucus has proposed a bipartisan stimulus package for the US economy of $ 1.5 trillion. Currently, it is not known whether this bipartisan stimulus package will be approved or not.

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As coronavirus cases increase in many countries, several world leaders are speculating on a second COVID-19 lockdown. As such, the UK is also discussing shutting down the country for the second time. The Bank of England did not change its rate, which was expected. However, the market was surprised after announcing that it would test the effectiveness of negative rates. The British pound fell, but improved after the Brexit developments.

The President of the European Commission said she believed Britain and the bloc could get along. Earlier, the British Prime Minister had decided to make a compromise and such an agreement which violates the EU agreement on Brexit.

Retail sales in the UK and Canada are expected to grow slowly.

The global pandemic has severely affected the world and the US economy. With the alarming rise in positive cases in France, Europe seems to be once again becoming a major hotspot.

OPEC + has decided not to change the production target. Despite this, oil is doing well. Bitcoin, meanwhile, is currently trading at $ 11,000.

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