Is this the end of the strong dollar? | What will the week bring?

Thousands of new cases and the first deaths of people infected with the coronavirus since May are causing increased health restrictions in China. Although the topic of COVID-19 has died down in Europe and the United States (at least in the media), the pandemic situation in the Middle Kingdom will also affect us. Further restrictions and reintroduced lockdowns paralyze Chinese logistics, which has an impact on the oil market. On Monday, November 21 black gold continues last week's declines, testing around USD 10 per barrel shortly after 00:87. Although the drop in raw material prices may lead to a drop in prices at petrol stations, and thus reduce some of the inflationary pressure on both sides of the Atlantic, renewed disruptions in the supply chain may quickly offset this effect.

Eurodollar is recovering from losses

The global spike in inflation was the result of a combination of three different phenomena: demand overheating, supply disruptions and the energy shock. In the United States, the first two factors played a key role, hence the inflation peak in the US was lower than in Europe (where energy prices are of key importance), but inflation may persist longer. Falling oil prices support a partial normalization in European energy markets and consequently offset much of the undervaluation still weighing on the euro in September or October. Meanwhile, despite the considerable dilemma facing him EBC, the EURUSD rate is already well above the parity level.

We invite you to a webinar with the Chief Economist XTB Przemysław Kwiecień, PhD, in which he will focus on the key topic of this week - the Fed as the last hope for a bull market?

In today's video:

• EURUSD – Can This Rebound Last?
• ECB with a big dilemma.
• The dollar is both expensive and sold out.

WATCH ON-LINE

In addition, due to the very dynamic situation in the world, additional ones will be made available raports Video on the impact of war, pandemic and economic crisis on the global economy.

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

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