Ever since the outbreak of the pandemic, it has rendered businesses across the globe in a shutdown mode. Trade and travel have stopped across various sectors and the retail sector has witnessed major losses. Amidst the pandemic, there have been many other relevant issues across the globe, but the virus has been major news.
The United States is supposedly the country that has suffered the most during the pandemic. The country has surpassed much grim news of cases peaking. The overall number of virus cases has surpassed more than that of any other country. The current tally stands at more than 15 Million cases. The country has witnessed close to 289,000 deaths till now, which is the highest among other countries. This makes up more than 21% of the global Covid-19 impact, which is an alarming trend.
Pandemic Impact Upon Economy
Prior to the start of the pandemic, the economy in the U.S. was in good shape. The rate of unemployment was at an all-time low in the last 50 years and even inflation rates were way below the initial Federation target of around 2%.
However, due to the closure of businesses, a major part of the U.S. economy has seen a slump. The consumer demand makes up for the real economic growth of the nation. The GDP figures received quite a shock. The GDP rates fell below 31% in comparison to last year. These figures were unseen for quite some time now since America experienced the Great Depression.
The unemployment rates were at an all-time high ever since the second world war concluded in the 1940s. The unemployment rates reached a peak of around 14.7% at the start of the year. The rates have since recovered, owing to measures by the government. At present, the unemployment rates are hovering around 2-3%, which is fanning major social unrest.
Various sectors, such as hospitality and airlines, are staring at a bleak future with no respite in sight. The recovery for these sectors is expected to take a while.
US Dollar Amidst the Pandemic
The dollar has seen quite a fluctuation in valuation ever since the news of the pandemic has hit the world news. The global efforts are focused on vaccine development and distribution. According to expert analysis, the dollar value is expected to fall around 20% in the next quarter owing to massive vaccine distribution. The dollar has already plummeted around 11% since March this year. The trend is expected to follow. Another reason for the falling dollar value is the contracting US economy. As we discussed earlier, the US economy has already contracted close to 30% ever since the pandemic has struck. The dollar volatility is expected to continue until the pandemic subsides and the US economy gets back on track.
The high dollar volatility makes it the ideal time for investors to look into forex trading. With the US dollar contracting in value, it is bound to have global currency correction, which makes forex trading an interesting choice for potential investors. The fall of 20% of US dollar value makes it the right time to invest in the dollar and hold for long-term gain when the situation normalizes.