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Jerome Powell flooded the dollar and gave investors a reason to stick to cryptocurrencies

 


The negative tone of the US Federal Open Market Committee caused a dumping of the US dollar after the committee kept US revenues unchanged, in order to push investors to sell the US dollar for almost everything.

While the dollar index fell to a low of 90.55, a further decline may happen if positive data for the US GDP is not released this evening, as the dollar index could fall below 90.00.

If the weakness caused by the US Federal Open Market Committee continues with new negative data from the United States of America, it is expected that the US dollar will test further weakness against most major currencies, and the targets in that case will be as follows:

EUR USD: 1.2250

GBP USD: 1.4300

AUD USD: 0.8000

NZD USD: 0.7500

USD CAD: 1.2000

USD JPY: 107

The funny thing is that the Chinese yuan also benefited from the drop in the US dollar, to trade at 6.4715

Currently, we cannot advise traders to open long positions on the major currencies against the US dollar, as the US dollar can regain some strength based on any positive news or announcements, but we also cannot advise to start opening short positions currently during the heat of the US dollar’s ​​decline.

Therefore, we prefer to remain neutral until next Monday, waiting for the markets to absorb the chaos created by Mr. Jerome Powell yesterday.

But the most important thing now is that what happens will clearly support confidence in cryptocurrencies, as investors realize over time that their money is hostage in the hands of central banks that can reduce its value at any time through a press conference or decision, and that a new economic plan, such as the new US President’s plan, will be adopted. Always control the investors' money without their will

Specifically, this is what gives cryptocurrencies what they need to gain more confidence, as they are outside the control of the US Federal Reserve and the rest of central banks, and the past days have proven that all hostile positions taken by central banks do not affect these cryptocurrencies except momentarily and temporarily.

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Jerome Powell flooded the dollar and gave investors a reason to stick to cryptocurrencies Jerome Powell flooded the dollar and gave investors a reason to stick to cryptocurrencies Reviewed by DR HISHAM M YOUNES on April 29, 2021 Rating: 5

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