America stimulus support add strength to the dollar as investment increase

[palle11]

It’s not “my indicators”. I was merely asking a question if you, or anyone, believes that the U.S. Dollar is truly “strong” after the United States’ falling GDP, trillions in BRRR money printing backed by debt, and the coming problem of inflation. What is backing the “strength” of the Dollar?

Okay well I'm speculating it based on what I'm seeing with the currency movement. The US dollar pairs for last week and week before did well in the pairs. For against the EU and GBP where it is paired as counter currency, it was seen to be pulling the base currencies down and also for pairs as base currency to CAD,CHF, it was strengthened up. Maybe that could be temporal though. Never take out sentiment in trading.

But for printing cash and its effect on inflation, the US can control that.

[so98nn]

Have you guys ever thought that when Government gives away stimulus package then most of the people are trying to invest them into stocks to stay future ready and that actually benefits the government itself? I mean what if they already know this is the market ahead, and government opens up positions to benefit themselves?

I know this could be just overwhelming response to the current situation but with amount of money they are printing, it’s huge.

[jaysabi]

If the US dolllar is strengthening, its off of heavy buy volume on FOREX exchanges. Fiat currencies like the US dollar, yen and yuan are bought and sold on exchanges which can elevate or depress their value. They are very similar to cryptocurrencies in that way. The federal reserve could place large buy orders for the US dollar under their longtime QE (quantitative easing) program to quell fears associated with the dollar devaluing. That is one possible scenario for the charts OP posted. The fed has already amassed massive quantities of US bonds and other assets, it wouldn't be farfetched for them to buy the US dollar as well.

Stimulus spending and printing ever larger mountains of fiat to give people free money haven't often strengthened any currency through history. The end result of that policy is more likely to resemble the zimbabwe dollar or venezuelan bolivar at their weakest, than they are the US dollar at its strongest.

How could the the Fed place large buy orders for the US dollar under a QE program? Since QE is creating more dollars, what would the Fed buy dollars with, different dollars? This doesn’t make sense.

[bitgolden]

It’s not “my indicators”. I was merely asking a question if you, or anyone, believes that the U.S. Dollar is truly “strong” after the United States’ falling GDP, trillions in BRRR money printing backed by debt, and the coming problem of inflation. What is backing the “strength” of the Dollar?

Okay well I'm speculating it based on what I'm seeing with the currency movement. The US dollar pairs for last week and week before did well in the pairs. For against the EU and GBP where it is paired as counter currency, it was seen to be pulling the base currencies down and also for pairs as base currency to CAD,CHF, it was strengthened up. Maybe that could be temporal though. Never take out sentiment in trading.

But for printing cash and its effect on inflation, the US can control that.

Just because USD could pair stronger or weaker against other currencies doesn't mean that it is doing better, or it became stronger, it could mean that or it could mean that other currencies got even weaker. So, let's say there is this X item you could buy for 100 dollars and 100 euroes in a world where euro and dollar is 1 to 1 equals.

Because of inflation that product becomes 150 dollars but 200 euroes, just because it went up 100% for euro and only 50% for dollars does that mean that Dollar is stronger? No because it lost 50% anyway so it is weaker, it is stronger than euro but weaker compared to what it was. That's what people are saying right now, they do not care about other currencies, we think (and I agree) that dollar is weaker, it is not stronger, not after what happened in the last 1 year with trillions of dollars printed to make it go down in value.

[Wind_FURY]

It’s not “my indicators”. I was merely asking a question if you, or anyone, believes that the U.S. Dollar is truly “strong” after the United States’ falling GDP, trillions in BRRR money printing backed by debt, and the coming problem of inflation. What is backing the “strength” of the Dollar?

Okay well I'm speculating it based on what I'm seeing with the currency movement. The US dollar pairs for last week and week before did well in the pairs. For against the EU and GBP where it is paired as counter currency, it was seen to be pulling the base currencies down and also for pairs as base currency to CAD,CHF, it was strengthened up. Maybe that could be temporal though. Never take out sentiment in trading.

It’s the nature of trading. For “some reasons” behind the “strength” of the Dollar, maybe the other currencies are weaker? Because nothing indicates that the U.S. Dollar is strong based not in movement, but in the United States’ GDP and debt.

But for printing cash and its effect on inflation, the US can control that.

It can, BUT HODL Bitcoin as a fall-back/back up in case it can’t anymore.

[davis196]

I noticed that the US dollar increased it's value against my local currency a day ago.
I guess that this is caused by a higher level of optimism across the fiat currency markets about the recovery of the US economy and the end of the pandemic.Perhaps some investors/traders are seeing the US dollar as a short term "safe heaven"(which is ridiculous).
The vaccination process gives a sense of hope,that might be false in the end.
Let's see what will happen,if all the protection,that those vaccines provide lasts no longer than 1 year.
Will the people have to vaccinate again in 2022?

[Kittygalore]

Have you guys ever thought that when Government gives away stimulus package then most of the people are trying to invest them into stocks to stay future ready and that actually benefits the government itself? I mean what if they already know this is the market ahead, and government opens up positions to benefit themselves?

I know this could be just overwhelming response to the current situation but with amount of money they are printing, it’s huge.

Because a lot of people on the Internet is doing the same thing and a lot of financial influencers are advocating to put their stim package on investments, this is just a herd mentality that we are witnessing and it is a double-edged sword because it can help be used for the good and for the bad, you don't really have to worry about US overprinting their fiat if you don't live in that country, I mean bitcoin is flexible and can be converted to your local fiat.

[RealMalatesta]

No matter what the situation, the government will never give up their stimulus package even if it benefits the people it will hurt the government the impact of fiat is strong everywhere it is used in all countries, so the government supports the fiat currency and increases the strength of the dollar by increasing investment. The trade deficit between the two countries has narrowed significantly since the start of trade investment although it is still much higher however in order to reduce the deficit, the trade between the two countries has decreased by about ten trillion dollars.

I still think that it is obvious dollar is not as strong as claimed, sure you could show me some charts that show that it is profitable but the reality is that we are not there, the reality of someone who goes to work and comes back home will know the difference, their life is more expensive and their life is harder as well, there are much more people who are unemployed and many more that are making a lot less as well, people who used to be considered middle class is no longer available, there are people who barely survive and there are very rich people, the middle is very few nowadays.

So, just because there are people who work 2 jobs and barely survive, doesn't mean that there is no economical problem, that on paper looks like they are surviving but that's not alright with me. This is why I do not believe the charts that indicate dollar is strong, because life is not looking like economy is strong.

[bitgov]

Dollar is the global currency and USA holds the power to print as many currency notes as they want. Its because of this fact dollar won't fall. In my opinion this strengthening of USD because of currency notes is temporary and won't help dollar to stand out in the long run.