This 'digital currency' offers interest rates that could concern your bank.
Stablecoins Defined: Stablecoins are digital currencies designed to maintain a stable value, typically around $1, and serve as a reliable medium for transactions within the cryptocurrency ecosystem.
New Regulatory Framework: The passage of the GENIUS Act by Congress introduces the first federal regulations for stablecoins, establishing clear guidelines for their issuance and management, which will create new opportunities and risks for investors.
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Analyst Views on EURUSD
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U.S. Dollar Performance: The U.S. dollar has struggled throughout 2025 but may see improvement in early 2026.
Technical Indicator: The ICE U.S. Dollar Index recently experienced a "golden cross," where the 50-day moving average surpassed the 200-day moving average, signaling potential bullish trends.
Expert Insight: Paul Ciana, a technical strategist at BofA Global Research, highlighted the significance of this technical signal for the dollar's future performance.
Market Implications: The "golden cross" is often interpreted as a positive indicator for traders, suggesting a possible recovery for the dollar against other currencies.

Potential Investor Surprises: Morgan Stanley's global strategy team, led by Matthew Hornbach, has identified potential surprises that could catch investors off guard in 2026.
Research Note Publication: The findings were shared in a research note published on Friday, highlighting developments not currently factored into consensus thinking.
AI Trade Impact: The surge in artificial intelligence trading is leading to a weakening of currencies in Asia as locals exchange their money for dollars to invest in AI stocks.
Expert Analysis: Rory Green from TSLombard provided insights on this phenomenon in a report shared with MarketWatch.

- Dollar's Performance: The U.S. dollar experienced its worst first-half performance in a calendar year since the early 1970s at the start of 2025.
- Interest Rate Cuts: The dollar has been rising steadily since the Federal Reserve began cutting interest rates again in September.

Stablecoin Growth: The value of stablecoins has surpassed $300 billion, accounting for approximately 7% of the total cryptocurrency market, following the passage of the GENIUS Act by Congress last July.
Questionable Stability: Despite being marketed as a safer cryptocurrency option, the stability of stablecoins is often overstated, with significant variations in safety and security depending on the issuer.

Investor Sentiment: Investors are encouraged to overcome concerns regarding U.S. equities, largely due to the resilience of the U.S. consumer, according to a European wealth manager.
AI Valuation Concerns: While rising valuations of AI-related companies are a concern, they are not currently hindering investment in AI stocks, as stated by Benedicte Kukla, chief strategist at Indosuez Wealth Management.







