The US Dollar has continued to decline through summer, as premature re-openings brought in a second wave of coronavirus cases in the US. The United States has the highest Covid-19 case load in the world, with more than 6 million cases and 185K deaths, as of September 3. Compared to other nations, it has been unable to control the infection rate, while the US administration’s reluctance to cooperate with the WHO, mid-pandemic, has left investors sceptical about the future.
All this paints a grim picture for US economic recovery. In its initial summary, released in July 2020, the IMF predicted 6.6% GDP contraction for the US, on a YoY basis, and only 3.9% growth in 2021.