$3 Trillion is not enough, thoughts on the US economy.
The coronavirus pandemic, and the U.S – China trade pressures have lately caught the U.S very hard, which has emerged in a GDP befalling a historic -32.9% in Q2 of 2020, decreasing from -5% in the past period.
In the meantime, the US has previously spent $3 trillion proppings up the business since the pandemic hit in March, which accommodated the short-term economic recovery from mid-April to June.
Purposes for USD sell-off and Technical Outlook The greenback still struggling to find an upside force as concerns over the mounting number of infections, ambiguity around the next round of stimulus package and escalating tensions between the US and China.
Moving ahead, the investors eagerly waiting for the next round of incentive, the US is preparing further support for the economy. On the last FOMC conference, The Fed Chairman Powell suggested that the economy would require additional assistance means to cope with the outbreak of the economic crisis.
The Dollar index has broken down below 93.50 and at the time writing the money pair meeting on key support at 92.50. Any break below 92.50 the next post at the 92/91.80 level and on the top side the next resistance can be found at 93.50 and then 94.
When will the US economy recover?
The US has suffered a surge in new coronavirus cases, the country is still trying to contain disease rates and deaths from COVID-19. According to the newest figures published by Johns Hopkins University in the US, there have been 4,294,770 confirmed cases and 148,056 deaths, with 1,325,804 people recovered from the virus.
On the other hand, the tensions within US-China continue to increase regarding the closure of China’s Houston, Texas consulate. In retaliation, China has directed the U.S. consulate in Chengdu to cease operations.
So, until a vaccine or adequate medication for Covid-19 is ready, the recovery of the U.S the economy will not get initiated till the mid of 2021. Nevertheless, the value of the possible vaccine can only be anticipated in early 2021.
"The financial costs of the crisis are being born disproportionately by the poor and vulnerable, taking into stark relief deep inequities that have long troubled the US," the IMF said.