The Dollar weakens due to Economic and Political Tensions| KOL Forex Analysis•Bola Akinya

The main event of recent weeks remains the stimulus package for the US economy, which Republicans and Democrats still cannot come to agreement on.

After Trump issued a series of executive orders that cut off funding for a number of key points, the parties clearly decided that there is no need to rush.

Over the entire past week, they have regressed rather than progressed in the negotiation process.

Based on this approach, they can be in a deadlock for a while - until September or even longer.

This is negative news for the dollar, especially considering that last week US retail sales and industrial production came out worse than experts expected.

Moreover, since China reported another decline in retail sales, which suggests that the country's consumer sector has not yet recovered from the consequences of the pandemic.

Meanwhile, the UK economy has officially entered a state of recession, demonstrating the highest decline in the country's history in the second quarter and becoming one of the worst in Europe (even worse than Spain with its -18%).

The situation with the pandemic in the United States has improved significantly over the week, but in the world, it continues to remain consistently difficult, as the improvement in the United States was offset by a worsening in other countries.

The news that Russia has an effective vaccine for the day rocked the financial markets, but most developed countries said that there was no trust in it, and in the United States they generally noted that they would not even prick monkeys for testing purposes.

As for the coming week, in terms of statistics, it promises to be relatively calm.

So, the markets will continue to follow the opposition between Republicans and Democrats, as well as the United States and China. In addition, another round of trade negotiation between the EU and the UK kicks off on Tuesday.

Authors Biography

Bola Akinya is a Forex trader and consultant with more than 20 years of immense experience in Forex Indices, Commodities and Currencies.

Prior to becoming a professional Trader, she held positions as a Head of Sales/Business Developer with Credit Registry and Operations Manager with Peak Merchant Bank both in Nigeria before moving to UK where she worked with great companies like AIG and The Wealth Training Company as Course Instructor and Speaker for over 15 years on the FX and Stock Markets before she started her own company – The Learn and Earn Forex Training Company over 6 years ago.

Over the years, she learned 121 from Top traders all over the UK which enabled her to develop her own unique strategies and trading systems that has made her a successful trader and Trainer.

She is married with 2 boys and 2 cats.

With the combined use of Fundamental and Technical analysis, she trades on the short term – medium term, as well as Economic News releases, combining both to give the consistency that is required for successful trades.