Employment Stats Weigh Negatively on AUD, Market Influencing Figures for EUR and Pound Awaited

In the news this week, Japan released its 3rd quarter GDP figures while Australia also released its October employment figures.

Earlier today, China released its industrial production figures for October. Powell’s much-anticipated testimony to Congress on the U.S. economy also had an impact on the market.

By analyzing the inflation figures published in Australia in October, compared to previous forecasts, employment fell by 19,000, compared to an expected increase of 15,000. In September, it increased by more than 15,000. As reported in the October report, full-time and part-time jobs fell by 19,000, a reversal of an increase of more than 250,000 in its annual figures.

After the release, Aussie slipped from $ 0.68365 to $ 0.68048. It is now trading at 0.6801 dollars, -0.54%.

An analysis of China’s industrial production figures showed an increase of 4.7 percent in October, which is less than 0.7 percent of the forecast. Property, plant, and equipment declined 0.2% from the forecast by 5.4%, while retail sales decreased 0.7% from the forecast increase of 7.9%. The unemployment rate fell by 0.1%, which is considered an advantage. In the wake of the news, Aussie fell.

Impact on Currencies
Investors are waiting for GDP figures from the eurozone and Germany, as well as the final estimate of inflation figures for October from Spain and France.

In terms of the impact on the euro, German GDP figures should be the most important, while those of France and Spain will have the least impact.

Currently, the euro is between – 0.04% and 1.100 USD.

October retail sales figures, expected later this week, will have an impact on the pound as it rebounded slightly during the week, which could be attributed to the upcoming elections. It may not record gains in the wake of this publication, the pound has lost 0.05% against 1.2845 USD.

The Japanese yen rose from 108.801 yen to 108.778 yen after favorable economic statistics. At the time of writing, the Japanese gained ¥ 108.78 against the US dollar, gaining 0.04%.

As noted, the kiwi dollar fell 0.25% to 0.6395 dollars.

The October headline inflation figures, as well as the US-China trade negotiations, also impact the dollar, as does Powell’s defense on Day Two of the Congresses. The dollar is between -0.01% and 98.362.

OPEC’s appetite for market risk and crude oil prices affect the Canadian dollar, while September’s price data for housing, which will be released later in the day, may not have any significant impact.

The loonie declined 0.04% to 1.3256 Canadian dollars against the US dollar.

Former US Fed Chair Says He Doesn’t Believe in Having a CBDC

The preceding Fed Chair of the United States, Alan Greenspan has expressed his opinion on Central Bank issued Digital Currencies, saying there was “no point” to it. Alan made this remark at a conference organized by the Chinese Financial Magazine Caijing on the 11th of November.

Alan’s opinion was based on the premise that fiat currencies are supported by sovereign credit which was an advantage restricted only to institutional structures.

He said that even the most successful corporations/stocks of the world presently (Facebook, Amazon, Apple, Netflix, and Google) could not contend with the capability of the US financial markets.

Alan was on the seat when several crises rocked the American financial markets like; the Black Monday stock exchange crash, the financial crisis of Mexico, Asia and Russia, and the dot com bubble burst. He was also there for the tech boom of the 1990s. His 1987-2006 term saw him manage several consecutive crises. The Fed’s consistent preeminence over the International financial space, got TIMES magazine to publish a cover of Alan, the then-Treasury Secretary and Undersecretary labeling them the “Committee to Save the World” in 1999.

However, in the financial crash that happened in 2008 caused the public to blame Alan and his associates for enacting rules that affected the global space negatively, which caused his reputation to decline.

China Already Spearheading the Movement
In this time of growing pressure between the US and China, the PBoC is on its way to becoming the first nation in the world to release a CBDC.

Also, Tunisia has commenced a project on digitizing the Dinar. The nation is also looking to release a paper-supported CBDC on a blockchain system in conjunction with a Russian tech firm.

The US House of Reps Want a CBDC
Last month, members of the US House of Reps Financial Services Committee sent a letter to the sitting Fed Chair, Jerome Powell, advising that the Chair looks into developing a USD CBDC.

The legislators insisted that the Fed had the power and obligation to develop a more durable and advanced monetary system by creating a digital currency.

Chinese Authorities Reevaluates Decision to Terminate Bitcoin Mining

China’s National Development and Reform Commission has reevaluated its initial plan, proposed 6 months ago, to terminate Bitcoin mining in the cryptocurrency space in China.

The NDRC, which is a well recognized economic structuring authority under China’s State Council, has released a fresh filing for Guiding Industry Restructuring, on the 6th of November. This fresh edition will substitute the existing edition which was broadcasted in 2011. According to the filing, the authority has delisted Bitcoin mining or additional digital currency mining actions from the list of industrial activities to be expunged from the nation.

The release didn’t contain any detail concerning Bitcoin or digital currency mining. Created in 1998, the NDRC is among the “cabinet-level” bodies that, collectively, make up the State Council of China’s government. The major function of the NDRC is to study and pen down economic reform schemes and systems for the government. The first industry reform filing by the NDRC was issued in 2005. They grouped the industry into 3 sections; suggesting to the country on those to be encouraged, restricted or eliminated.

Is Bitcoin Mining Out of Danger in China?
The previous outline of the most recent filing reevaluation was published in April this year, which categorized digital currency mining as the creation procedure of Bitcoin in the section for elimination.

The filing suggested to local governments to terminate Bitcoin mining in China. The action was perceived by the public as an indication that China had intentions of banning Bitcoin mining, however, the operation didn’t categorically state that it had the intent of doing so. The reevaluation of the filing came after months of crowdsourcing suggestions.

In the NDRC press conference that was held on the 6th of November, administrators revealed that after the original filing, the body has gotten more than 2,500 proposals on different matters, and a number of them have been considered, however, the administrators made no mention of matters concerning Bitcoin mining.