The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
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.
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.