Bitcoin’s price has surged past $106,000, driven by President-elect Trump’s support for a US bitcoin reserve and growing global interest in cryptocurrencies as alternatives to traditional assets. This surge has boosted the overall cryptocurrency market, reaching a record value of over $3.8 trillion. The move reflects increased institutional adoption and a potential shift in global financial dynamics.
President-elect Trump’s desire for a weaker dollar to boost exports may be thwarted by his own proposed policies, which could inadvertently strengthen the U.S. currency. Experts warn of potential global financial instability and negative impacts on U.S. competitiveness.
Economist Jeremy Siegel argues that Bitcoin, not a potential BRICS reserve currency, poses a greater threat to the US dollar’s global dominance. This comes after President-elect Trump threatened BRICS nations with 100% tariffs if they pursue a rival currency, while simultaneously Bitcoin’s price surges.
The Chinese yuan has fallen to a four-month low against the US dollar, fueled by concerns about potential US tariffs, a weakening Chinese treasury yield, and the need for additional economic support. This decline raises questions about China’s ambition to challenge the dollar’s dominance as the world’s primary reserve currency.
The US dollar reached its highest level in over two years, fueled by weaker-than-expected economic data from Europe. The Eurozone and UK experienced contractions in November, leading to concerns about potential rate cuts and further economic downturn. Analysts predict continued downward pressure on the euro due to geopolitical risks and domestic instability.
The US dollar surged past 155.60 yen on Wednesday, hitting a near four-month high. This surge is largely attributed to investor speculation about the incoming Trump administration’s aggressive tariff policies. Economists predict these tariffs will reshape currency markets and fuel US inflation. The dollar’s strength against the yen reverses losses from early August, driven by weak US jobs data and Bank of Japan interventions.
The Australian dollar (AUD) started the week on a cautious note against the US dollar (USD), trading around 0.6590. China’s recent economic stimulus announcement failed to impress investors, and the impact of the US Presidential election continues to ripple through markets. This week, Australian economic data is set to take center stage, with key releases that could influence the Reserve Bank of Australia’s (RBA) monetary policy decisions.
This analysis dives into the post-election movement of the USDJPY pair, examining potential bullish and bearish patterns, and explores how the recent DXY strength might impact other Japanese yen pairs, like AUDJPY, EURJPY, GBPJPY, NZDJPY, and CADJPY.
Gold prices plummeted over 3% to $2650 per troy ounce as the US dollar surged following Donald Trump’s presidential election victory. The strong dollar, coupled with expectations of a more conservative approach from the Federal Reserve on interest rate cuts, put pressure on the precious metal. Today’s focus is on the Fed’s interest rate decision, which is expected to include a 25-basis-point cut. Technical analysis suggests further declines for gold, with the immediate downside target at $2617.40.
JPMorgan Chase & Co. analysts predict a wild ride for the US dollar depending on the outcome of the 2024 presidential election. A Trump victory with a Republican-controlled Congress could boost the dollar by 7.3%, while a Harris win with a divided Congress might cause a 5.4% drop. The report explores the potential impact of trade policies and inflation on the dollar’s value.
