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Let's talk about USD. 2 very important questions to ask that will forever impact the world reserve currency are 1) will petrodollars ever return again? 2) will Central Bankers go back to buying US Treasuries again? These are difficult questions, but the earlier we have the answers, the less we have to deal with in time to come. 1) Can petrodollars return? Very unlikely. Middle East's biggest oil clients are China, Japan, then EU, and rest of Asia. China and Japan will want to use their own currencies. Saudi had declared it would sell oil in multiple currencies, including Euros, Yen, Yuan, instead of exclusively USD in June 2024. Can US use its military protection to coerce Middle East into using USD again? This is not 1974. William Simon, then newly appointed US Treasury, managed to convince the Saudis US was the safest place to park their petrodollars. The US would buy oil from Saudi Arabia and provide the Kingdom military aid and equipment. In return, the Saudis would plow billions of their petrodollar revenue into Treasuries and finance US's spending. Under 4 years of President Trump, the Saudis experienced what it meant to lose the big, fat US market and to compete directly with US shale for the world oil market. US is now a direct competitor, instead of a client. 2) Will Central Bankers go back to buying US Treasuries again, instead of gold? It seems ludicrous to assume the world will or has to support US spending. Unless a war is imminent, US has trade surpluses with most nations, the need for USD seems extremely small. Why do Saudi, Japan, China, EU have to keep their reserves in USD/UST, especially so when rate cuts are coming??? The irresponsible, unexplainable, unstoppable debt growths is another main deterrent. How long will it take for the bubble to burst? US can argue she will fulfill her debt obligations, I'd argue no one will be convinced. Gold feels like a safer bet. Demand for USD will greatly diminish. It's an indisputable fact. The strength of USD has direct implications on US economic strength. Vote for a President who can build it.

EUR/USD: Unfavourable conditions for the single currency https://lnkd.in/eDa7rGWk #eurusd, #forex, #eurodollar, #currencyforecast, #currencytrading, #forexforecast, #usdollar, #technicalanalysis, #euro, #dollarforecast

Geopolitical conflict escalates, Fed turns hawkish Recent remarks by Federal Reserve officials have maintained an overall hawkish stance, with some even suggesting that interest rate cuts might be postponed until after next year. In contrast, European Central Bank officials have maintained a dovish stance in their recent statements. Financial markets have responded accordingly, with the dollar strengthening, while both US stocks and bond prices have fallen. Gold prices have remained relatively stable. However, this morning, as Israel launched retaliatory actions against Iran, prices of international financial instruments broke through their ranges. Safe-haven assets such as US bonds and gold rose, while oil prices also showed significant gains. Global stock markets, on the other hand, experienced sharp declines in response. The escalation of tensions between Israel and Iran is likely to continue to trigger market volatility. =================================== About Hantec Financial: https://bit.ly/478OQPo #HantecFinancial #Hantec #Hantecgroup #Fintec #marketnews #financenews

The euro stabilises as traders gear up for a sterling data deluge. Read the full report: https://lnkd.in/eFJyC5qz #fx #stocks #fxmarkets #markets #economy #forex #currency #recovery #recession #federalreserve #biden #dollar #euro #inflation #dollar #spending #eu #sterling #pound #budget #currency #currencies #BoE #inflation #gdp #USD #ukeconomy #banking #ECB #Fed #cpi #debtceiling #ratehikes #fomc #fca   Image Source: Reuters

Currency market volatility is back with a vengeance, fueled by uncertainty over the U.S. presidential election, and it is upsetting one of the most popular trades in the yen. https://lnkd.in/gUpy9Sh2

Observing the foreign exchange market, recent trends highlight the US dollar's robustness in the face of worldwide economic changes. #USD #JapanInflation #BoJ #FXMarket #marketanalysis #finance #Investing https://lnkd.in/eegfU77r

Although there seems to be a fresh round of concern that upward pressure on prices, geopolitical risk and the US’s foreign entanglements will drag the currency down and reduce its global influence, so far there isn’t much evidence of it. The dollar strengthened this week as forecasts of Federal Reserve interest rate cuts were scaled back in light of unexpectedly high inflation. It’s a currency’s normal reaction to interest rate differentials. If there were fears US inflation was getting out of control and shaking confidence in monetary policy we might expect to see it weakening, not strengthening, and the prospects for American growth underperforming rather than outperforming other economies. #GlobalFinancialMarkets #FinancialMarkets #FinancialRisks #CapitalMarkets #USDollar #FX #FXTrading #Forex #ForexTrading #ForexMarkets #CurrencyMarkets #CurrencyTrading #Currency #USDollar #USEconomy https://lnkd.in/g59PPks7

EUR/USD declines to one-month low amid Eurozone's political uncertainty Explore our blog to uncover additional insights on this topic: https://lnkd.in/dfVXTgCb Risk Warning: Trading involves risk. This is not an investment advice. #ExclusiveMarkets #TradeTheMarkets #MarketNews #EUR #USD #Macron #France

The Swedish Riksbank becomes the second major central bank to start cutting rates. Read the full report: https://lnkd.in/eJt9aP8x   #fx #stocks #fxmarkets #markets #economy #forex #currency #recovery #recession #federalreserve #biden #dollar #euro #inflation #dollar #spending #eu #sterling #pound #budget #currency #currencies #BoE #inflation #gdp #USD #ukeconomy #banking #ECB #TheFed #cpi #debtceiling #ratehikes #fomc #fca   Image Source: Reuters

US inflation slips further but political turmoil in Europe dents the euro. Read the full report: https://lnkd.in/e6xnVn3Y #fx #stocks #fxmarkets #markets #economy #forex #currency #recovery #recession #federalreserve #biden #dollar #euro #inflation #dollar #spending #eu #sterling #pound #budget #currency #currencies #BoE #inflation #gdp #USD #ukeconomy #banking #ECB #Fed #cpi #debtceiling #ratehikes #fomc #fca   Image Source: Reuters