He dollar global rose this Tuesday to a four-month high against its main peers, while the bitcoin extended its record advance as investors continued to pile into trades seen as benefiting from the incoming administration of donald trump in USA.
For his part, the euro languished at its lowest level in seven months and the yuan plummeted to its lowest level in more than three months, with Europe and China as targets of possible Trump tariffs, Reuters reported.
The main cryptocurrency, bitcoin, reaches a new all-time high of $89,982 and its last value stood at $88,561. Trump has promised to turn USA in “the cryptocurrency capital of the planet”, as specified by Reuters.
“We are in a regulatory tailwind,” said Gautam Chhugani, an analyst at research firm Bernstein. “We look forward to a crypto-friendly regulatory environment under the Trump administration, starting with a pro-cryptocurrency SEC (Securities and Exchange Commission),” he added.
Meanwhile, the dollar indexwhich measures the currency against six peers, was up 0.34% at 105.78, near its highest level since early July. “The market continues to push US stocks, US interest rates and the dollar higher,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
“Today probably the impetus is the fact that we had these reports that Trump is looking to appoint Senator Marco Rubio and also Congressman Waltz as key foreign policy officials, and are known to be quite aggressive with China”, he added.
Trump’s political decisions would affect his relationship with the world
Trump is expected to name Senator Rubio as his secretary of state, sources told Reuters on Monday, possibly the most aggressive choice on the list. Furthermore, it is expected that the Republican representative Mike Waltza critic of China, be the national security advisor. “This suggests that Trump is serious about some of his hardline policy proposals,” Tan added.
He Republican Party of Trump will control both chambers of the Congress when he takes office in January, Decision Desk HQ projected Monday. That would allow him to push an agenda of tax cuts and shrinking the federal government.
Trump has warned that the euro bloc will “pay a high price” for not buying enough American products, especially cars, and has threatened China with general tariffs of 60%.
Potentially inflationary tariffs and immigration policies have caused markets to reduce the likelihood of a U.S. interest rate cut. Federal Reserve from a quarter point on Dec. 18 to 69% from nearly 80% a week ago, according to CME Group’s FedWatch tool.
He euro is feeling additional pressure due to political uncertainty in the bloc’s largest economy, Germany. He Green Party, the chancellor’s coalition partner Olaf Scholzjoined the opposition’s calls on Monday to advance the parliamentary vote and open the way to early elections.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
