Dubai TV Interview, March 15, 2021

In an interview with Dubai TV, Director of Research and Development at Noor Capital, Mohamed Hashad takes a closer look at the markets.

US dollar

This week is one of the most important weeks for the US dollar, with markets awaiting the Federal Reserve’s statement and interest rates decision, with the widespread belief that the bank will maintain interest rates in light of the current economic conditions related to inflation and Treasury yields, which will have a positive impact on the US dollar.

All factors are in favor of the rise of the US dollar and despite the approval of the fiscal stimulus package of $1.9 billion, but the US dollar is still struggling with commodities and currencies denominated in dollars, with the belief that the US dollar will receive a boost from the continuation of the skyrocketing rise in US Treasury bond yields to its highest level in almost a year at 1.63, in addition to the positive data from the United States and the US president’s statement that the economy will witness a recovery during the second half of this year, which will be positive for oil prices, as the United States is the largest consumer of oil in the world.

China

Chinese data released may push oil prices higher, but stocks are still falling due to higher Treasury yields. There is a clear improvement in Chinese retail data and industrial production, which is an indication of improved economic activity in China and evidence of increased output produced by Chinese companies, which pushes oil prices higher, but stocks are still awaiting the Federal Reserve’s statement, along with higher Treasury yields.

Europe

With regard to the European Union imposing sanctions on the United Kingdom on to the Irish border, the markets did not give this news much attention as investors focused on the decline in gold and currencies. Europe wants to impose sanctions on England, but if they do, this is a loss for everyone.