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DXY: BRICS Creating New Reserve CurrencyHi Traders, Investors and Speculators of the Charts 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. For the past eight decades, the U.S. dollar has been the dominant global currency following the Second World War. It has been widely accepted worldwide, with only a few exceptions, and is commonly recognized by the image of Andrew Jackson and the seal of the U.S. Treasury, making it the most recognizable export of the United States. The U.S. dollar became the reserve currency of the world following the Second World War, mainly because the United States was the dominant global economic and military power at the time. The Bretton Woods Agreement of 1944 also played a crucial role in establishing the dollar's role as the world's reserve currency. Under this agreement, other countries agreed to peg their currencies to the U.S. dollar, which was backed by gold. This made the U.S. dollar a stable and reliable currency for international transactions, leading to its widespread acceptance as a reserve currency. Additionally, the U.S. had a large trade surplus, making it easier for other countries to hold dollars as reserves to pay for U.S. goods and services. The dominance of the U.S. dollar as the world's reserve currency has been a source of both admiration and resentment among other countries and superpowers. Many countries have benefited from the stability and liquidity that the U.S. dollar provides as a reserve currency, allowing them to conduct international trade and investments with greater ease. However, some countries have also experienced the negative effects of dollar dominance, such as the risk of currency fluctuations and the potential for U.S. monetary policy decisions to have spillover effects on their own economies. The U.S. dollar was not only commonly used in international transactions but also widely held as a long-term store of value across the globe. Central banks worldwide held more U.S. dollars than any other currency. This resulted in low borrowing costs for Americans , which allowed middle-class people to buy homes. Furthermore, the U.S. government was able to incur significant debts without apparent consequences due to the dollar's global dominance. Americans may not have been aware of this situation, but it had a favorable impact on their daily lives. Occasionally, the Congress discussed the debt ceiling, but it seemed like an abstract topic that most people did not care about since America controlled the global reserve currency and could print U.S. dollars. This privilege made money cheap, and Americans enjoyed benefits that were not available to other countries. However, the thought of losing this dominance was too terrible to contemplate, and concerns began to arise around the time the Russian military entered Ukraine about a year ago. The consequences of such a loss would be dire, and it was a worrisome issue. The Russian military's invasion of Ukraine was destabilizing, as wars typically are. However, it was the West's reaction to the invasion that raised concerns. U.S. policymakers, led by USA President Joe Biden and supported by Republican senators, seemed intent on not only toppling the Russian government but also disrupting the post-World War II economic order that had benefitted the U.S. for decades. The sanctions weren't expected to harm the U.S. economy more than the Russian economy. Russia's economy is not heavily reliant on financial services but on natural resources such as oil, gas, iron, and coal . Despite the sanctions imposed on Russia, its Ruble remains stable against the US dollar, which suggests that the sanctions did not have a significant long-term impact on Russia's economy. The seizure of Russia's central bank's dollar reserves was intended to collapse Russia's credit system and cause bank runs, but it didn't happen. The USA did not consider the dangers when using the dollar, the sign of security and unity, as a weapon. The result of this is unsurprising, many countries lost confidence in the dollar. And so, Russia, Brazil, Pakistan, India, Malaysia, France, China, and Saudi Arabia are conducting business in currencies other than the US dollar, such as the Chinese currency Yuan. This is happening at a fast pace and shutting out the US dollar, which is losing trust from other countries due to its use as a weapon and excessive printing, leading to inflation and currency devaluation. 💭Final Thoughts 💭 We look to history to speculate on the future. As the saying goes, history repeats itself. During the First World War, the German government borrowed heavily to finance the war effort, resulting in a significant increase in national debt. The government continued to print money to pay for its expenses, which led to hyperinflation and a collapse of the German economy in the early 1920s. In 1923, the German mark was practically worthless, and people had to carry wheelbarrows of money to buy basic goods. This hyperinflation had a devastating effect on the German people, wiping out their savings and pensions and causing widespread poverty and social unrest. The situation stabilized when the German government introduced a new currency, the Rentenmark, backed by mortgages on agricultural and industrial land which restored some degree of confidence in the currency. The German government basically inflated their currency due to excessive debt accumulated from war. The United States has a similar history with wars, relying on the reserve currency status to recover from the economic damage of these wars. However, considering the large economical impact of Russia and BRICS's contribution the the economy, it could be catastrophic due to the current state of the US economy. The BRICS nations (Brazil, Russia, India, China, and South Africa) are exploring the possibility of creating a new reserve currency as an alternative to the US dollar-dominated international financial system. The proposal was discussed at a virtual meeting of the BRICS finance ministers and central bank governors, with a goal to decrease the dependency on the US dollar and increase trade between member countries. However, no specific details were provided yet about the potential reserve currency. _______________________ 📢 Show us some LOVE 🧡 Follow for daily updates and trade ideas on Crypto , Stocks , Forex and Commodities 💎 We thank you for your support ! CryptoCheck
TVC:DXYShort
by CryptoCheck-
53
Gold, China, BRICS vs. US Dollar HegemonyIn the contemporary global landscape, compelling arguments exist for a pro-Gold, pro-China, pro-BRICS case and a pro-US, pro-USD case. This extensive analysis will explore both perspectives, starting with the pro-Gold, pro-China, and pro-BRICS cases. The global commodity supply and demand pricing dynamics reveal a shift in gold businesses from the US to China. Since 2013, gold demand in Asia has led to the migration of vaults, physical and financial trading operations, and even exchanges to the East. This shift signifies an increasing connection between oil, gold, and the Chinese Yuan, as evidenced by the gold-for-oil trade between Russia and China in 2017. Rumors of Saudi Arabia using renminbi from oil sales to buy gold on the Shanghai Exchange also indicate a growing connection between these commodities and the Chinese currency. The BRICS coalition (Brazil, Russia, India, China, and South Africa) has formed to counter G7 control and assert their interests in the global landscape. The US freezing Russia's foreign currency reserves and cutting them off from the SWIFT system has catalyzed the emergence of Bretton Woods III, a new era of commodity-based neutral reserve currencies. As the US hegemony declines, a new world order with multiple powers based on commodities production and trade is emerging. However, the pro-US, pro-USD case argues that despite concerns surrounding the dollar's hegemony, it remains a crucial player in global transactions. China's economy faces growing debt, an expanding real estate bubble, and potentially inflated GDP numbers. Moreover, the yuan (RMB) faces significant challenges in becoming a globally accepted reserve currency, primarily due to China's capital controls, illiquid markets, and authoritarian governance. In contrast, the US dollar remains dominant in global central bank reserves and transactions. This is partly due to the dollar's resilience and the perception of the US's security and stability. Although reserves have shifted for countries with closer trade relations with China, the US dollar remains the world standard. The push for de-dollarization has gained momentum recently, particularly after the Russia-Ukraine conflict and Western sanctions against Russia. However, moving away from the US dollar system is challenging for several reasons, including the US dollar's dominance in global markets, the yuan's limitations as a globally accepted alternative to the US dollar, OPEC members continuing to price their oil in US dollars, and the obstacles faced by BRICS nations in creating a new currency to facilitate trade and promote de-dollarization. In conclusion, while there are signs of a shift in the balance of global reserve currencies, it is premature to predict the decline of the US dollar's dominance in international markets. The pro-Gold, pro-China, pro-BRICS case highlights the increasing role of gold and the emergence of a new world order with multiple powers based on commodities production and trade. However, the pro-US, pro-USD case emphasizes the resilience and stability of the US dollar and the challenges faced by alternative reserve currencies, such as the yuan, in replacing the US dollar on a large scale in the foreseeable future.
by BitcoinMacro
The USD, China and the De-dollarization challengeThe US dollar has maintained its status as the world's dominant reserve currency for decades, thanks to its perceived security, resilience, and the depth and liquidity of US markets. Despite concerns surrounding the dollar's hegemony, it remains a crucial player in global transactions. Meanwhile, China's economy faces challenges, such as growing provincial government debt, an expanding real estate bubble, and potentially inflated GDP numbers. In addition, China's need for US dollars and the push for de-dollarization by countries like Russia, China, Iran, and Saudi Arabia have gained attention. This analysis will explore these issues in depth and examine why moving away from the US dollar system is complex. China's increasing debt, falling real estate prices, and the growth of its banking assets to around 55% of Global GDP are all causes for concern. The country's M2 money supply has grown at a 9% yearly rate, reaching HKEX:40 trillion, more than double its GDP. If China's GDP numbers are indeed inflated, as suggested by the Brookings Institution, this could exacerbate the problem. Moreover, the yuan (RMB) faces significant challenges in becoming a globally accepted reserve currency, primarily due to China's capital controls, illiquid markets, and authoritarian governance. In contrast, the US dollar remains dominant in global central bank reserves and transactions. This is partly due to the dollar's resilience and the perception of the US's security and stability. Although reserves have shifted for countries with closer trade relations with China, such as Indonesia, Malaysia, Hong Kong, Singapore, and Chile, the US dollar remains the world standard for now. The push for de-dollarization has gained momentum recently, particularly after the Russia-Ukraine conflict and Western sanctions against Russia. Countries like Russia, China, Iran, and Saudi Arabia seek to move away from the US dollar system to reduce their dependency on the US economy and gain more control over their financial systems. However, moving away from the US dollar system is challenging for several reasons. First, the US dollar's dominance in global markets ensures its continued importance in international trade. Even if countries like China and Russia attempt to shift away from the dollar, many other countries will likely continue to rely on it for their transactions, as it provides stability and liquidity. Second, while the yuan is gaining prominence as a reserve currency, it still faces significant hurdles in becoming a globally accepted alternative to the US dollar. China's capital controls, illiquid markets, and authoritarian governance make it difficult for other countries to trust the yuan as a reliable reserve currency. As a result, it is unlikely to replace the US dollar on a large scale in the foreseeable future. Third, OPEC members continue to price their oil in US dollars, despite the currency's decline relative to other world currencies. Economic, technical, and political factors prevent them from switching to other currencies or a basket of currencies. The benefits of such a switch are limited, and it would not benefit all OPEC members equally. Furthermore, the US will unlikely allow OPEC to disregard the dollar without consequences. Finally, the BRICS nations (Brazil, Russia, India, China, and South Africa) are reportedly considering creating a new currency to facilitate trade and promote de-dollarization. However, this plan faces several obstacles, such as political disagreements among the BRICS countries and convincing other nations to adopt this new currency. Additionally, the benefits of a new BRICS currency are uncertain, and it may not be enough to destabilize the US dollar's dominance in global markets. In conclusion, while there are signs of a shift in the balance of global reserve currencies, it is premature.
by BitcoinMacro
LOOK AT THAT BEAUTIFUL WTHE MARKET STRUGGLE IS REAL. ACCOUNTS DON'T KNOW WHAT'S REALLY GOING ON. WHEN I POST THE "W" OF THE TVC:DXY YOU WILL SEE AN ASTONING "W AS WELL... BUT ON A LARGER TIMEFRAME. THIS IS ALL JUST A WAITING PERIOD FOR ALL MARKETS TO FINALLY ALIGN AND ATTUNE THEMSELVES FOR THE NEXT PHASE... AND IF TVC:DXY FLOATS AND STAYS ABOVE HKEX:104 THEN ACCOUNTS ARE IN FOR A RUDE AWAKENING. DON'T LISTEN TO ME JUST PAY ATTENTION AND LOOK HARDER BUT IN A MORE... SIMPLE WAY... STEP AWAY FROM THE SCREEN AND TAKE A LOOK. IT IS ALL GLARING AT YOU. Anyway, it's a late night. Off to dreamland. Rest up... we have a long decade ahead. Take care and be safe. #2026Mutation #DXY #BRICS #PETRODOLLAR #HYPERINFLATION #SOUTHAMERICANBANKINGEXECUTIVES #SHIBA #25SIGMA -----------------------------------1-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------0-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------1-------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------0------------------------------------------------- Note: Full "W" swing in one twenty-four hour period. Nice job.
COINBASE:SHIBUSD
by NebulousMercuria
Petro Dollar - A controlled Demolition 🇺🇸 🛢 💸 Petro-Dollar chart to illustrate the inevitable collapse of the current world reserve currency: The U.S. needs cheap oil prices for the dollar to remain competitive globally and to retain the world reserve currency status 🇺🇸 🛢 💸 They accomplish this by controlling oil production globally, flooding the market with oil products, while synthetically increasing our reliance on the product. When oil prices get too high, it taxes other countries who need to trade their currency for dollars in order to buy oil 🛢 making these dollar transactions very expensive. If oil prices can't be negotiated lower, then they need to cause a financial crisis to weaken the dollar to make it cheaper to transact in. They create this liquidity by inflating the currency 🖨 i.e. "Quantitative Easing." If Trump & the BRICS Nations cut ✂️ the oil supply, the FED would soon bleed out as the dollar melts upward and runs out of liquidity. They'd be forced to cause yet another collapse and hyper-inflate the dollar away 💵 to make transacting in it competitive again. Risk assets would soar under these conditions, ending with the pop of the everything bubble. The Great Reset..... a planned demolition.
FX_IDC:USDBROShort
by sir_Cooley
USDCNH rollover TO 6.72 RIP DXY With the looming BRICS news I have turned my eyes to the Yuan/ dollar pair to ride the short for the exit of the Petro dollar. THIS IS A Q2 SWING MOVE This will not be a linear drop FYI! Very very choppy as US will attempt to pull out all the stops to avoid the collapse of the Dollar safe haven. Top Down Analysis: Using the Monthly I plotted out the High resistance of 7.329 aka the highest strength of DXY from early Q4 2022. Major support lies at 6.30 We are monitoring right now and looking to enter a trade if we can get a close under 6.82 as that takes out bullish sentiment. From 6.82 we can catch 1000 pips down to 6.72 as the liquidity will gain bearish momentum. (Q1 Double bottom low) Another 1000 pips down can be a bear trap at 6.61 so we will try to take 50% profits shortly after 6.72 is taken out. This is a High volatile trade and can be aggressive in trend. Please trade with caution. ****** THIS IS NOT FINANCIAL ADVICE******
Short
by chestephens1
BRICS gain as West plunderBRICS nation are growing root in rapid speed. Mexico has joined BRICS recently and many are lining up. China just mediated a diplomatic pact between Iran and Saudi Arabia, gaining more grounds in Middle East. A new superpower bloc in the making. A potential new reserve currency that is backed by commodities such as gold is on the rise. We are seeing majority of BRICS nations are purchasing gold at breakneck pace. They know the US Dollar hegemony that is backed by nothing, may one day lose its dominance. As US banking sector continues to crater, soon it will spill over to the next most vulnerable industry, which is real estate. Housing market is extremely critical to the overall well-being of US economy. With companies laying off employees, prices of necessities continue to rise and Jerome Powell continue raising rates, path down the road don't look too bright. By Sifu Steve @ XeroAcademy
PEPPERSTONE:XAUUSD
by XeroAcademy
My thoughts for this week 31 January 2023US This week will be a fairly exciting to monitor as Interest Rate announcement and Non-Farm Payroll data will be release. Two heavy hitting news that is very key to understanding further trends in the markets, especially on DXY. Through entire January 2023, DXY is consolidating steadily and holding ground around 101.500 area. Could this week’s high impact news finally get DXY out of consolidation? We shall see. However, we know that Federal Reserve will be raising rates again by 25 basis points, which mainstream news outlets seem to be mentioning. With this data, theoretically, if rates go up, it is bullish for the currency and vice versa. Another thing to consider is that, Japan and China are still dumping US Treasuries/Bonds and many other countries are attempting to de-dollarize. Further add to the fuel is US’s national debt ceiling that has been breached last week. These 2 scenarios are very bad for the US economy. How much of bullishness will 25 basis point increase bring about? So far, from the last two, Federal Fund Rate announcement (Nov & Dec 2022), we see that DXY declined even with 50 basis points hike. Could history repeat again? Perhaps DXY can reclaim 102.500 – 103.000 but I do not think whole-heartedly that it will give 105.000 a go. China With China’s re-opening, there is definitely positivity circling the global markets. China’s GDP growth was reported up by 3% for the year 2022, higher than expected rate of 2.8% but yet still fell short of March’s target of 5.5%. The sign of growth, though little, is still a sign of improvement. Considering after months’ long Zero Covid policy and geopolitical tension with the West, problematic real estate sector, this slight improvement definitely have greater volume to it than just the number. We cannot take our eyes away from the long term end goal of China, which is to be the next reserve currency of the world. Collaboration with some powerful nations e.g. Saudi Arabia, Brazil, South Africa, Indonesia, India etc via BRICS+ bloc, brings Xi Jin Ping’s path to dominance one step closer day by day. Recently, Saudi Arabia also made public about their consideration of non-US Dollar for Oil trade. Gold continues to be horded by China, as well as Russia and major central banks of the world, just goes to prove the level skepticism towards the greenback. Just my thoughts. Trader Sifu Steve @ XeroAcademy Malaysia
TVC:DXY
by XeroAcademy
.48 XRP March - DCA & Chill Current plan - DCA and chill into March, prep for the 2023 Q4 Bull Run 😏 🩰 Based on current events XRP has yet too reach settlement in their lawsuit... and being restricted in select US market furthers the need for regulatory clarity. Irony is that bridge currency's like Monero & Stellar Lumens aren't up against the same blockade. Personally I don't care how the SEC case resolves... (well obviously i absolutely do), I'm more interested in XRP leaving the US... and being wholely embraced in ASIAN PACIFIC (A-PAC) markets. XRP users welcome competition because XRP is significantly further ahead in terms of their tech than competitors can scale too. There's so much market too serve it's kind of pointless to bicker over petty beefs. 🇧🇷 🇷🇺 🇮🇳 🇨🇳 🇿🇦 (Brazil, Russia, India, China, South Africa) are leaning away from "US Dollarization"... shifting away from Swift Lets be honest the easiest way for BRICS countries to snub the US is by adopting tech the US hinders. Its an easy play I see panning out. We talk about Shiba Inu being a doge killer, and likewise XRP via Ripple is a credible threat to the Swift protocol. Asymmetrical warfare also takes place in venues of commerce, and where ever a win can be scored, expect BRICS nations to unify around an easy opportunity to snub the US for being absent on crypto specific clarity. They will 1 by 1 incrementally adopt XRP as a solution to their "sanction proofing" of cross border payments. Personally.... XRP should leave the US and they should cite Gary Gensler absence on the job specific to the FTX collapse and SBF's 40BN bankrun.... the SEC cuts backroom deals. If SBF wasn't a Gensler protegè from MIT proper checks would have prevented the FTX, Celsius, & Terra Luna, 3AC, Voyager fallout from affecting millions of Americans. New ODL payout markets include Africa, Argentina, Belgium, Israel, Australia, Brazil, Singapore, the UAE, the UK... I am telling you the world does not revolve around US dollarized markets. The US does not border every border, and other nations have over 20,000 crypto's too choose from, but those nations chose XRP... that says something. The best thing that could happen for XRP is if they left the US market... however XRP will outlast current and future administrations of government. The battle with Gensler is going to be a challenge. Only the Senate can technically remove Gensler, so it would be up to XRP fanatics to make the case for Gary G's termination. If XRP does choose to stay in the US it's because they see Gensler being fired... and based on the lack of regulatory clarity.... the absence of evolved law... it is very probable that the US senate ends up removing Gensler. Odd os Gensler stepping down or being removed in 2023 = 70% odds If Elon ran a poll.... it'd be hard to ignore that reality So hence why i say Q4 of 2023 will be absolutely massive, first news likely to break at the end of Q1 which aligns w/ the mid-March 2023 potential moon. End of Q1 we'll get some good news I imagine.
by BIG-BLACK-CRYPTO
1
EGX30 | BRICS RoadMapEgypt Joins the BRICS New Development Bank the NDB finances infrastructure and sustainable development projects in areas such as energy, transportation, water, communications, and health. "Since 2016, the Bank has invested in multiple projects, including US$7.2 billion in India alone," RT reported, recalling that Egypt expressed an interest in becoming an NDB member in July. "BRICS is working to develop its own financial infrastructure, including a joint payment network, with some member states having already switched to trade in local currencies in order to reduce dependence on the U.S. dollar and euro," it added. Currently, Egyptian President Al Sissi is in Saudi Arabia participating in the summit of Arab countries with China, the nation with the largest economy among the BRICS. Egyptian Finance Minister Mohamed Maait affirmed his country's enthusiasm for enhancing cooperation with international development partners, especially in light of the "unprecedented development movement" he is witnessing in Cairo. Previously, the Chinese Foreign Affairs Ministry has noted that Argentina, Algeria, Iran, Indonesia, Turkey and Saudi Arabia are also interested in joining the BRICS bloc.
EGX:EGX30Long
by ShoeIsRich
How far will it fall this time?After finding more gold than has been recorded to date, how low will gold sink? President Vladimir Putin said that the BRICS countries – Brazil, Russia, India, China, and South Africa – are currently working on setting up a new global reserve currency. “The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out,” the member states are also developing reliable alternative mechanisms for international payments. Why is this happening? The dollar has long been seen as the world's reserve currency, but its dominance in share of international currency reserves is waning. Central banks are looking to diversify their holdings into currencies like the yuan, as well as into non-traditional areas like the the Swedish krona and the South Korean won, according to the International Monetary Fund. "This is a move to address the perceived US-hegemony of the IMF," ING's global head of markets Chris Turner said in a note. It will allow BRICS to build their own sphere of influence and unit of currency within that sphere.
TVC:GOLD
by icheeetah
1
USDINR - Indian Rupee Trade Idea!A requested currency pair - Technical and Fundamental view of USD/INR! Fundamentals: The countries of BRICS are facing a very difficult time especially India due to covid levels - fundamental aspects of there currency: They had kept rates unchanged, I expect that to continue for while. As The dollar decreases, I expect it to follow the trend it is going in longer/Medium Term. Technical aspects: We have a down trend, as this moment of time we are in a type of consolidation - Which as you can see from my analysis it could break either way. - Time Frame: Daily - Pattern: Triangle / Bear flag formation. - Fib Retracement : If it goes above within the range I expect pull back towards areas of: 74.400 - 75.110 = 0.618-0.382 If it goes within the trend it is going breaks below the area of range of: 72.700 - I expect the next target between: 71.940 - 71.230 - Trendline down - that's nice pull back area where there would be a stop hunt those areas would be a great area to short it for a greater R/R trade. As long we don't above trendline down, the bears are still in control. - EMA - 50/200 - Very bearish if we above that bulls could gain further control but I don't expect it to last long - nice resistance area. Overall: See which way it breaks out - Patience is key. Put an alerts or if you're feeling much more confident put in an orders in. All the best, Trade Journal (TJ) Remember: Just a trade idea, not a recommendation.
U
by Trade_Journal
BRICS Custom Index forming new price channel (lower)Watch out below, folks. It appears recent support may not hold in my custom BRICS index as Emerging Markets appear to be under extreme pressures. Recent news out of China, Malaysia and Mexico could lead to a complete EM market collapse. Chinese capital markets are under extreme pressure right now and over $1 trillion in equity shares have been pledged to offset debt/loans. This may seem fine right now, but what if these share prices drop another 20~30%? What happens then? Malaysia is opening and aggressively targeting corruption and graft with the new Mahathir administration. The biggest target so far has been local Malay business leaders and China. Trust me, Mahathir will lock up, charge and possibly HANG some of these people for what they have done to sell out the Malaysian people and country. The news from this could be catastrophic for China. Imagine hundreds of billions (possibly multiple-trillions) being exposed as "shady deals" with the intent to make China look more prosperous over the past few years. Imagine how destructive it would be to find out that China has been dramatically cooking the books for the past 4+ years. Mexico, on the other hand, is very much like the wild, wild west right now. With the new Mexican President and a complete change in policies, no one really knows what is next. But what is likely is a truly epic reversal of core economic policies and what could be a dramatic destruction of people, property and future opportunities. BRICs?? Remember, how fast a brick falls when you drop it and how dangerous it really can be. Be very cautious.
INDEX:IBOVShort
by BradMatheny
India Could Be the Most Resilient of the BRICSThe BRICS (Brazil, Russia, India, China and South Africa) are highly watched emerging markets because they represented roughly 22 percent of global GDP in 2014. However, the global economic slowdown and increased geopolitical tension has weighed heavy on these markets. Although, India may be the most resilient economy out of the BRICS. India has felt its share of the slower economic climate, as the Markit manufacturing PMI fell to a seven-month low in September, falling to 51.2 from 52.3. According to Markit, there are signs of sustainable growth but input costs decreased for two months consecutively, which has not happen since the financial crisis. Both manufacturing and industrial output have remained stable. Services PMI has seen improvement since late 2014. In relation, the Chinese manufacturing PMI clocked in at 47.2 and has been contracting since March while near the worst levels since March 2009. Due to the slack in the economy and less than expected inflation, the Reserve Bank of India cut the benchmark rate by 50 bps to 6.75 percent. This strengthened the rupee has investors look for it to hinder capital outflow. It also comes as the People's Bank of China (PBoC) devalues the yuan. USDINR is likely to fall further as I expect the dollar to remain weak following the onslaught of poor economic data. Friday's non-farm payroll print of 146,000 was well below the 201,000 general consensus. To add insult to injury, August's jobs number was revised lower by 50,000 which left mouthpiece economists in bewilderment. The Fed's inability to act, in regards to an interest rate boost, will leave the dollar on shaky ground. Fed fund futures traders are not pricing in a potential for Fed action until June/July of 2016 - although, I am forecasting a recession by then. The USDINR is trending within a descending channel with support at 65.28, but the pair will travel to the 50 percent Fib. retracement at 65.15 (with the 72-daily EMA as further support). Secondary target is 64.83. Resistance can be found at 65.6060, 65.8337 and 66.1374 Please follow me on Twitter @Lemieux_26 Check my posts out at: bullion.directory www.investing.com www.teachingcurrencytrading.com oilpro.com
by CommoditiesTrader