What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
How will the digital yuan change the future?
On April 12 the People’s Bank of China reported that its digital currency will soon be ready for using. These days it will be in high demand as cash and credit cards could easily become transmitters of the coronavirus.
China shows the progress in adapting to the new reality and tries to benefit from it. These week Matthew Graham, the CEO of Sino Global Capital, shared the images of the beta app on Twitter.
The digital yuan is a significant step to a fully cashless digital economy. According to Zhou Xuedong, director of the People’s Bank of China, “more than 95% of daily micropayments are realized through mobile payments or Internet payments … the research and development requirements for digital currencies will become higher and higher.”
There are some advantages for consumer to use this blockchain technology such as an absolute security, a virtual zero cost and a high speed of transactions’ proceeding.
While digital dollars are not for ordinary people, but only for banks, the digital yuan can supplant the supremacy of the dollar. The Fed believes that it could undermine the international status of a dollar and impede the fiscal policy.
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!