(ETH) – After suffering its worst monthly fall in a decade, the US currency has begun August with a bounce. However, analysts predict a further weakness in the greenback. “We expect the currency to be undermined by an ebbing of safe-haven flows, a reduction in the US rate advantage, and political uncertainty ahead of the November presidential election,” UBS analysts wrote last week.
According to a report from RT News, The ICE US Dollar Index, which measures the dollar against a basket of six major rivals, plunged 4.2 percent in July – its biggest one-month decline since September 2010, data showed. The index was trading up on Tuesday at around 93.69, but data from the Commodity Futures Trading Commission showed that the dollar is well out of favor with speculative traders. FULL REPORT
In fact, borrowing has reached such levels that, The Treasury Department is reporting that it will ramp up the size of the bonds and other securities it auctions across-the-board in the face of the unprecedented borrowing needs of the U.S. government as cases of COVID-19 surge in parts of the country.
Treasury officials said Wednesday that the billions of dollars in auction increases include a $2 billion increase in the three-year note, a $9 billion increase in its 10-year note, and a $7 billion increase in its 30-year bond. Those three securities will be auctioned next week as part of the government’s quarterly refunding where it raises a significant part of its borrowing needs each quarter. You can read more regarding this HERE from the Associated Press.
Meanwhile, MSN News is warning that more bailout cash will not stop the wave of credit defaults. The report stated that even if Congress passes a new rescue package with more unemployment benefits, the cumulative effect of the ongoing economic catastrophe may finally trigger that default deluge, a new survey reveals.
More than half of consumers with credit card debt said they will need more bailout money to make minimum payments over the next three months, but about the same number said employment will be more critical to avoiding default. And right now, roughly 30 million Americans are claiming unemployment benefits.
“I think the overall trend [of credit card debt going down] masks some of the difficulty at the household level, and I do fear that we’re going to have more people relying on cards for financing and relying on cards just to make ends meet,” said Ted Rossman, an industry analyst at CreditCards.com. Read the full report HERE.
Then we have the cost of groceries that has been rising at the fastest pace in decades since the coronavirus pandemic seized the U.S. economy, according to the Washington Post, leading to sticker shock for basic staples such as beef and eggs and forcing struggling households to rethink how to put enough food on the table.
The report went on to state that Long-standing supply chains for everyday grocery items have been upended as the pandemic sickened scores of workers, forced factory closures, and punctured the carefully calibrated networks that brought food from farms to store shelves.
Even while some of the sharpest price hikes have eased somewhat, the overall effects are being felt most acutely by the nearly 30 million Americans who saw their $600 enhanced unemployment benefit expire last Friday — exacerbating concerns that the recession’s long tail could worsen food insecurity for years to come. Click HERE for the full report. The state of the economy is becoming more and more tumultuous as storm clouds continue to build and economists are sounding the alarm in this hour.