The future of money & EURUSD

The EUR/USD currency pair is one of the most actively traded pairs in the forex market. It represents the exchange rate between the euro and the US dollar, two of the world's largest currencies. Over the past few years, the pair has seen its fair share of ups and downs, and many traders are wondering what the future holds for this important forex pairing.

Looking back at the past few years, the EUR/USD pair has been through some significant events that have impacted its value. In 2016, the pair fell to its lowest level in more than a decade, as concerns over the stability of the European Union and the impact of Brexit weighed heavily on the euro. However, in the following years, the euro recovered, as the European Central Bank (ECB) implemented various monetary policies to support the currency.

The pair continued to fluctuate over the next few years, with various economic and political events impacting its value. In 2020, the COVID-19 pandemic caused significant volatility in the forex market, with the EUR/USD pair falling to its lowest level in over two years, as investors flocked to the safety of the US dollar. However, as the global economy began to recover, the euro gained strength, and the pair rebounded.

Looking ahead, there are several factors that could impact the future of the EUR/USD pair. One of the most significant is the ongoing economic recovery from the pandemic. As countries continue to reopen and economic activity resumes, the demand for both the euro and the US dollar could increase, leading to a potential increase in the value of the pair.

Another factor to watch is the monetary policies of the ECB and the US Federal Reserve. Any changes in interest rates or other policies could impact the value of the euro and the US dollar, and in turn, the EUR/USD pair.

In addition, political events could also impact the future of the EUR/USD pair. The ongoing negotiations between the UK and the EU over Brexit could impact the value of the euro, while the outcome of the US presidential election could impact the value of the US dollar.

In conclusion, the past few years have seen the EUR/USD pair go through significant fluctuations, and the future is likely to be no different. Traders should stay informed about the various economic, political, and monetary factors that could impact the pair's value, and adjust their trading strategies accordingly.

BRICS…

The BRICS is an acronym for a group of five emerging market economies: Brazil, Russia, India, China, and South Africa. These countries are collectively referred to as the BRICS nations and have been identified as some of the world's fastest-growing economies. As a result, their actions and policies can have a significant impact on the global financial market, including the US dollar.

First, it is important to understand the relationship between the US dollar and the global financial market. The US dollar is the world's dominant reserve currency, meaning that it is held in large quantities by central banks and governments worldwide as a means of settling international transactions. Therefore, any changes in the global economy can have a significant impact on the demand for US dollars and its value.

One of the most significant ways in which the BRICS can affect the US dollar is through their economic growth. As these economies continue to expand, they are likely to increase their demand for imports, including goods and services denominated in US dollars. This could lead to an increase in demand for US dollars and, therefore, an increase in its value.

On the other hand, if the BRICS economies were to suffer a significant economic downturn, this could lead to a decrease in demand for US dollars, which could lead to a decrease in its value.

Another way in which the BRICS can impact the US dollar is through their trade policies. For example, if the BRICS nations were to collectively shift away from trading in US dollars, this could lead to a decrease in demand for the US currency and a decrease in its value.

Other countries ongoing?

One of the countries that has been suggested as a potential member of the BRICS is Indonesia. With a population of over 260 million people and a rapidly growing economy, Indonesia has the potential to become a major player in the global economy. Some experts have suggested that adding Indonesia to the BRICS could help to balance the group, as it is currently heavily dominated by China.

Another potential candidate for BRICS membership is Mexico. With a population of over 126 million people and a strong manufacturing sector, Mexico has the potential to become a significant player in the global economy. However, some experts have suggested that Mexico may not be a good fit for the BRICS, as it has close ties to the United States and may not want to risk damaging those relationships.

Other countries that have been suggested as potential members of the BRICS include Turkey, Nigeria, and Iran. However, each of these countries faces significant challenges that could make joining the BRICS difficult.

Finally, the BRICS countries could potentially impact the US dollar through their cooperation on international monetary policies. For example, if the BRICS nations were to collectively push for a new global reserve currency or for changes to the international monetary system, this could lead to a significant shift in the value and demand for US dollars.

In conclusion, the BRICS countries have the potential to significantly impact the global financial market, including the US dollar. As these economies continue to grow and expand, their policies and actions will be closely watched by investors and traders around the world. It is important for traders to stay informed about these developments and adjust their trading strategies accordingly.

And more countries collaborating around.

So the hegemony situation for the USD is perhaps rather weak going forward.

TA technically looking at the EURUSD chart, and after the short-term upward movement, suggests that this upward movement could be running out.

It does not mean that it does not continue to go higher, but we could be looking at near exhaustion. And more with the latest news about other countries wanting to enter the BRICS environment, the weakness of the USD could increase in the long term as well.