Central Bank Digital Currencies

The pandemic brought with it a high interest in limiting the use of physical money. This need sparked the interest of central banks to generate their own digital currencies. This time will be a major turning point for crypto investors. Finally, speculators will understand that cryptocurrencies are not themselves digital currencies but instruments of financial speculation. We do not affirm that they will disappear but they will remain in the sphere of commodities markets.

China has been at the forefront in developing its own digital currency. It has been working on the initiative since 2014. Chinese central bank officials have already conducted mass trials in major cities, such as Shenzhen, Chengdu and Hangzhou.

“China’s experiment is on a very large scale,” said the former chairman of the Commodity Futures Trading Commission. “When the world arrives in Beijing next winter for the Winter Olympics, they will use the new digital Renminbi to shop and stay in hotels and to buy restaurant meals.

Weekly Market Projections March 08-12

EURUSD closed sold. Sell preference below 1.1890 to 1.1850. Below 1.1850 through 1.1830. Below 1.1830 through 1.1770. Buys above 1.20 are considered expired below 1.19. Scenario possible buyer only for over 1.1950. Attention. We estimate it is very possible that the price at the cross will complete intervals of 1.18 and 1.1770 and then take buyers back to 1.20 and 1.22.

GBPUSD closed sold. Sell preference below 1.3830 to 1.38 and 1.3780. Below 1.3780 it remains with sell pressure up to 1.3750. From 1.3750 it remains seller until possible 1.37. Possible alternative scenario buy only for over 1.39.

USDJPY closed buyer. Buy preference. Next level of crossing 109.0 with possible extension to 109.20. Below 108.0 it could have a slight correction to 107.70.

USDCAD closed unchanged. Sell preference below 1.27. Sell only from 1.2630 sell up to 1.26. Otherwise if the opening is buy on Monday we could resume the buy preference over 1.27 to 1.2730. The Canadian interest rate on Wednesday 12:00 pm EST will be the event that would promise a definite path for this crossing.

AUDUSD closed sold. Sell preference below 0.77. We are going to sell at 0.7650 to 0.7630. Below 0.7630 we continue with sell pressure to 0.76 and 0.7555. Alternatively, the cross could have a beginning of the week in buy, if so, the buys are only above 0.7720.

XAGUSD XAUUSD gold and silver closed sell in regards to weekly behavior. Friday’s session showed a slight recovery. In gold below 1800.0 sell preference. We expect to sell at 1690.0 to the new low of 1680 and 1670.0. Silver maintains a sell preference below 26.0. We wait at 25.0 to sell until 24.50 and 24.0. There is no strategic buy scenario in the short medium term.