Bitcoin Forum

I see the dollar index is rising putting downward price pressure on gold.

Questions I like to ask:


- Is DXY index going up because Euro EUR currency is going down now?

- Will all that money printing for stimulus cheques coming soon courtesy of the Biden administration, will that put downward price pressure on the DXY because of inflation or is DXY is only measured against EUR and other currencies regardless of how much inflation there is in the $US Dollar? Lets say there is Hyperinflation with both $US Dollar and EURO at the same time then will that mean DXY wont be affected?

- Will DXY be updated to include the Chinese Yuan currency and approx. when will that be?

- Like gold can DXY put downward pressure on Bitcoin too?

- Can cashing out assets to the $Dollar, like selling off stocks, selling bitcoins for $dollars increase the DXY? I ask because of the march stock market crash last year the DXY jumped up in price at the same time.

- When people spend $Dollars, then will that put downward price pressure on DXY? Is it spending Dollars from savings or from debt that causes this?

- Will low interest rates put downwards price pressure on DXY because it encourages more spending and less saving? Also this encourages a lot of borrowing to spend that should boost the economy but does a US economy that is running on debt increases or decreases the DXY?

- Is it high DXY that causes Crude Oil prices to go up or vice versa?

- If the USA changes its paper fiat $Dollar currency to the newer blockchain CBDC Central Bank Digital Currency digital programmable new $dollar money system, then will that replace or Reset the DXY to 0?

There are FOREX questions.   :)  Might you have better success posting this content on a forum frequented by those who specialize in this area?

At a glimpse, it appears you're searching for market mechanic based motives for current market conditions.

I think many of your questions can be answered by Donald Trump being removed from the Presidency and replaced by Joe Biden. The resulting impact the regime change has on economic, finance and geopolitical concerns.

Indeed, the political aspect of the United States of America has an important role in the growth of the country's economy. That is why we will witness many economic developments in the coming months, which will include different sectors, the most important of which is gold and digital currencies!!!So let's look forward to the upcoming events.

The dollar has dropped about 11% since its high about a year ago. The recent 1% rise is not that significant in comparison.

The drop in the value of the dollar raises the price of global assets in terms of dollars simply because the dollar is worth less. However, people buying assets to avoid a falling dollar may increase demand, causing the price to also rise in absolute terms.

The dollar is going to be weak most likely until we start to see an end to Coronavirus. And even then it could be a while for it to start gaining value. Currently all this inflation, money printing, low interest rates are not helping the dollar.

The stock market keeps printing new highs which also makes shorting the dollar ideal. Currently the dollar is heavily shorted, so this is why we get these small rises from time to time because people keep thinking that "stocks have peaked" and a few weeks later it reverses again and keeps declining more and more. Hence why its dangerous to try and buy the bottom. Because who knows how low it will keep on going.