Sharp Gains in the Dollar Following First Speech of New Fed Chairman: What is Next for Traders?
The Dollar (USD) is trading sharply higher following the first speech of new Fed chairman, Jerome H. Powell. Watch our special video as we interpret Mr. Powell’s speech, and how his words and the change in market sentiment might trigger larger moves in the EUR/USD, GBP/USD, USD/JPY, AUD/USD, and the NZD/USD.
The words of the Fed chairman brought down the bitcoin rate
According to CoinDesk, the most famous cryptocurrency in the world, which showed meteoric growth in 2019, fell 12% to $ 11,450..
On the eve of the chairman of the US Federal Reserve System Jerome Powell called for the termination of the Facebook project on the Libra cryptocurrency until the issues related to privacy and money laundering are resolved..
«Libra raises serious concerns over privacy, money laundering, consumer protection and financial stability, Powell told a congressional committee. – These are issues that must be carefully and publicly addressed».
Facebook’s Libra is expected to be a stablecoin. Project supported by a group of government currencies and debt securities.
The social network plans to launch a token with a consortium of companies such as Uber and Visa.
Analysts are optimistic about Libra, at least from the point of view that it could pave the way for the further development of the cryptocurrency market. But the Facebook-led project is clouded by concerns from regulators, and central bankers and politicians around the world are expressing skepticism..
Other major cryptocurrencies, including Ethereum and Ripple, also saw falls of 15-17%.