Weekend brain food VI

Like a school kid who becomes hardworking only when her mom tells her she can go out to play if she finishes her homework, I am seeing that playground now. 
Rushing homework now begins...

Photo by Ben White on Unsplash

"The value of American stocks, especially those that are included in market indexes, tend to increase along with the demand for U.S. dollars."

"The dollar automatically strengthens when the euro weakens. That’s because the euro makes up 57.6% of the value of the U.S. dollar index. This means that whatever makes the euro weaker will make the dollar stronger and vice-versa. Each of the other currencies in the USDX has less influence on the dollar’s value." [source]

My take

The strengthening of US dollar is probably temporary. I am expecting the US gov to continue injecting cash to support the weakened economy.

Demand surged as businesses switched their currencies to greenback to cover debts that are denominated in greenback?

"To push down long-term interest rates. The reduction in long-term interest rates, in turn, is meant to stimulate investment and other forms of spending."

3 Things I Learned from the Coronavirus Crash (blog post by Ofdollarsanddata)

"Another useful thing that has come out of this crash is the realization that lots of “safe havens” aren’t actually safe."

"And that, my friends, is why the only safe asset that I know of is the one that sits directly between your ears."

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