Market Update:
A Global Depression Is Imminent, USD Crashes Against GBP, EUR, AUD & Gold
Image source: voanews
(1st June 2020) Heading into the last month of 2020’s 2nd quarter, it is clear that the global economy suffers to the pandemic outbreak. The pressure of nationwide lockdowns combined with the existing political tensions in multiple countries worsens the overall situation for most currencies, such as USD, GBP, and AUD; while Gold continues to thrive。
USD
After suffering months of job loss and economic stress from the lockdown, the US is now facing heavy protests everywhere over the discrimination issues. The unfortunate death of George Floyd sparks uproar in the community and riots near the White House.
GBP
The Pound is fluctuating even though Boris has changed the lockdown stance from “Stay at home” to “Stay alert”. Easing of the lockdown could not alleviate the worries over the No-Deal Brexit, which is set to happen at the end of 2020
AUD
The Aussie is showing signs of depreciation. As a country whose economy depends on exports to China, the escalating US-China tension is hurting the trade between Australia and China.
EUR
Italy’s political turbulence is hurting the country’s economy. However, the recent EU 500 Billion Euro Aid Package will help to push the currency higher.
GOLD
As a safe-haven asset, demand for gold escalates during the global recession, it is showing a steady bullish trend over the past 2 months.
USD Dollar Index (DXY) declined to 98.295
USD/CNY fell to 7.1161 from last week’s height of 7.1766
USD/JPY remained stagnant around 107.675
EUR/USD rose to 1.11370 from last week’s lowest of 1.0870
AUD/USD rose to 0.67277 from last week’s lowest of 0.65198
NZD/USD rose to 0.62450from last week’s lowest of 0.60839
GBP/USD rose to 1.23993 from last week’s lowest of 1.21639
XAU/USD rose to 1737.46 from last week’s lowest of 1694.006
