A much anticipated first-ever plan to regulate cryptocurrency in Europe was unveiled on Thursday by the European Commission. The executive branch of the European Union (EU), the agency responsible for managing the day-to-day business of the 27-nation bloc, proposed legislation crafted to reduce risks for investors, while also giving legal certainty to companies issuing them.

“The future of finance is digital,” said Valdis Dombrovskis, the panel’s executive vice president, in a statement. “During the lock-down, many people shifted to accessing banking and other financial services online. Many more made contactless payments. Developing better financial products for consumers and opening new funding channels for companies will all help the recovery.”

The legislation is intended to reduce market fragmentation, as many digital finance providers only operate in one country. As a result, the measure allows crypto companies to provide its services across the other member states with approvals. Still, Dombrovskis noted that digital transformation is not risk-free. The new legislation intends to reduce these risks for investors, while also giving legal certainty to the issuers of cryptocurrency.

And the new update that The European Commission will launch a new effort in the next few days to boost its own capital markets boosted EUR. It is a project which has become wrapped up in the EU’s push for greater “strategic autonomy” given the vulnerabilities exposed by the Covid-19 pandemic and the great power rivalry between the US and China.

The deteriorating state of relations with the UK in recent weeks has only strengthened the argument for the EU to stand on its own two feet, officials say.

On the other hand, the investment banking giant Goldman Sachs foresees Washington’s stalemate on additional fiscal stimulus leading to a slower than expected US economic growth in the fourth quarter.

Economists have lowered their fourth-quarter gross domestic product forecast to 3% from 6% on a quarter-on-quarter basis after revising its base case to include a lack of additional fiscal stimulus until 2021, according to Business Insider.

EUR/USD 4 Hour Chart:

Support: 1.1636 (S1), 1.1601 (S2), 1.1575 (S3).

Resistance: 1.1696 (R1), 1.1722 (R2), 1.1757 (R3).

Amidst all the catalysts favoring EUR against Greenback, we expect a bullish trend for EUR/USD.