Not that long ago, not a month went by without the news of a new Coronavirus outbreak in Australia. In fact, many scientists believe that a Coronavirus drought is now occurring. The recent outbreaks in Chicago and Cleveland have all occurred while the Coronavirus has been in the midst of a Coronavirus drought.
Experts say that an interesting phenomenon is taking place as far as the Coronavirus drought is concerned. On the one hand, it looks like the Coronavirus is seeing a bit of a rebound in the wake of a recent Coronavirus drought. On the other hand, it appears that our inflation rate is holding down the Coronavirus.
As you know, the price of US Dollars is very low when compared to some other currencies. This has been true since the end of last year and has continued to be true ever since. Inflation is running at about one and a half percent right now.
If you look at the value of US Dollars against other currencies, you will find that the Australian Dollar ranks near the bottom. This is so because of what is called the Coronavirus Drought. This drought has been keeping the Coronavirus at bay and thereby keeping it in check.
To understand what is happening with the Coronavirus drought, we need to understand what is happening with the US Dollar Data Drought. You might recall reading a little bit about this data drought before. But the data drought itself is not new; it has been in existence for a few years.
You might also recall that the main reason why the dollar data does not move up is because of the rising price of oil. The two are interconnected in a way that one is a direct contributor to the other.
We saw, as we read the past few days, that the price of oil is rising, which means that the dollar data is no longer moving upward. When you look at the trends that we are seeing in the time period from late-January through early-February, the dollars just continue to fall and tumble, while the Coronavirus remains steady or grows slightly in a state of Coronavirus drought.
So how does the Coronavirus keep the dollar data down, while the Coronavirus Drought keeps it down? That is a question for another article. What is interesting about this point is that the Coronavirus appears to be holding its own, while the Coronavirus Drought is dampening the Coronavirus effect on the Dollar.
It appears that a level of Coronavirus Drought has been set, while the dollar continues to rise. This seems to support the assertion that inflation is the culprit in preventing the Coronavirus from taking flight.
The Drought seems to be in charge when it comes to the dollar data right now. This is good news for US economic growth, and that includes those people who speculate on US Dollar Data Drought in the hope that the Coronavirus will come roaring back.
As you can see, the Coronavirus Drought is in charge of the dollar data right now, while the Coronavirus Effect is holding steady and shows no signs of any overturning. This is why the dollar is unlikely to drop further in coming weeks.
So that is all I had for you today. Please consider all this and think on it.