The United States has been troubled by different issues simultaneously. The protests concerning the death of George Floyd, as well as, the coronavirus crisis gained a foothold notably in the country. There are also controversies around Donald Trump who look forward to a second term in the 2020 elections.
But it should be said that the United States did really well on the market in July. In this article, we will talk about factors and predictions for the future.
General market overview in July
Based on the analysis provided by 55brokers, the US market was mostly positive during July. Representatives from the IT, commodities, and real estate sectors led the growth. Tensions remain between the U.S. and China and the coronavirus pandemic has failed to take full control, which was mainly because of the Trump administration.
World stock markets are mostly growing after the Republicans announced the next program to stimulate the US economy. At the same time, the threat of a pandemic remains. In the United States, the increase in the number of infected is slowing, although it remains high. In Florida, the daily rate reached a minimum of three weeks. Similar dynamics are observed in other hotspots: California, Texas, and Arizona.
The focus is on a new fiscal stimulus package that the Republican majority in Congress has submitted for discussion with the Democratic Party. The plan includes a second round of direct payments to citizens in the amount of $1,200, a reduction in additional payments for unemployment benefits from $600 to per week, as well as new loans for small businesses and tax incentives for hiring employees. Lawmakers intend this program until July 31st. Its implementation can speed up the process of economic recovery.
Demand for safe assets, including US bonds, declined. The 10-year Treasury rate returned above 0.60%. August Brent futures are trading above $43. Gold is correcting after reaching an all-time high at $1980.
However, after consulting this FXTM review on 55broker.com it became quite obvious that no matter how much the US economy may undergo change, the USD will always remain a safe haven not only for US investors but for foreigners as well, thus giving a guarantee for growth well into the future.
The Freedom Finance Sentiment Index remains at 10 out of 100. The indicator continues to reflect concerns about the negative impact of the pandemic on the economy. An increase in the indicator from the minimum values may indicate an improvement in prospects.
Technically, the previous month has so far been successful for the country. If we also pay attention to the FX volumes and FX trading in the country there were also significant improvements regarding that. Even though Trump faces a lot of controversy in the US, most likely he will once again be reelected.