Delta variant poses major risk to global economic recovery
The media is currently widely discussing the topic of the third wave of the pandemic. The new strain of coronavirus, its Delta variant, is spreading rapidly. Many experts have already called the Indian strain one of the biggest risks to global growth. Apparently, the world community has prematurely declared victory on COVID-19.
This is why analysts around the world are voicing concerns. The greenback has asserted strength amid coronavirus worries. Moreover, markets are now overheated. If the economic outlook worsens, the US currency is highly likely to soar. The US dollar index may reach 95 or even 100. In case this forecast turns out to be correct, the yen is likely to be the only currency that will not give in to the rising US dollar.
The commodity market has recently entered the correctional phase. Oil prices remain almost unchanged. Traders hope for the positive outcome of negotiations on Iran's nuclear program. So far, there has been no progress yet. If the parties reach a consensus, oil may gain bullish momentum. The only positive news for the oil market was the decision of OPEC members to extend the deal. Nevertheless, it is not recommended to bet on the strengthening of commodity currencies against the US dollar.
US indices are showing steady growth. Stocks included in the NASDAQ Composite index are constantly rising. If the epidemiological situation in the United States does not worsen and Jerome Powell does not announce the tapering of the bond-buying program, the index is highly likely to move to new highs.