2024-03-22 05:34

Copyrighted Image by: Reuters. Investing.com-- Bitcoin price weakened in Asian trade on Friday as strength in the dollar, which rebounded sharply to three-week highs, pushed the world’s largest cryptocurrency below $64,000. Bitcoin traded down 3.95% at $63,285.6 by 12:34 ET (16:34 GMT). The token saw a heavy dose of consolidation from record highs over the past seven days but still remained steady above weekly lows. Strength in the dollar was the biggest source of pressure on crypto markets, as an unexpected interest rate cut from the Swiss National Bank and dovish signals from the Bank of England saw traders stick firmly to the greenback as among the few high-yielding, low-risk currencies. The dollar index surged to a three-week high of over 104 points. Bitcoin price heads for weekly loss amid dollar strength, profit-taking The world’s largest cryptocurrency was now trading down about 5% from last Friday’s levels amid pressure from the dollar and sustained profit-taking. The token had surged to record highs above $73,000 last week, as it benefited from strong capital flows into the recently-approved spot exchange-traded funds in U.S. markets. These funds were a key point of support for Bitcoin so far in 2024, with the token trading up around 50% for the year. Bitcoin also remained well above lows hit during the week, when anticipation of a Federal Reserve meeting drove the token as low as $60,000. But the near-term outlook for the token was clouded by a strong dollar, as signs of resilience in the U.S. economy, in comparison to its peers in the developed world, made the greenback appear especially attractive. The Fed may also lag most of its central bank peers in cutting interest rates. Still, with the Fed maintaining its outlook for at least three interest rate cuts in 2024, the dollar is expected to eventually decline. Markets are still positioned for a 25 basis point cut in June, according to the CME Fedwatch tool. Such a scenario bodes well for Bitcoin, given that the token’s highly speculative nature helps it thrive in a low-rate environment. A halving event, which is expected to slash the generation of new Bitcoin by 50%, is also expected to push up prices in 2024. The halving is expected to occur by April. "ETF activity may begin to slightly fade away and make room for the highly-anticipated halving. With the way ETF activity impacts Bitcoin now, it is this rewards-halving event that will determine Bitcoin’s next course of price action," Elitsa Taskova, Chief Product Officer at Nexo, told Investing.com https://www.investing.com/news/cryptocurrency-news/bitcoin-price-hamstrung-at-66k-as-dollar-rebounds-to-3week-high-3349212

2024-03-22 04:42

Copyrighted Image by: Reuters. Investing.com-- Gold prices fell in Asian trade on Friday, retreating further from record highs hit this week as a sharp uptick in the dollar, following a surprise interest rate cut by the Swiss National Bank, pressured metal markets. The yellow metal had surged to record highs above $2,200 an ounce after the Federal Reserve maintained its outlook for at least three interest rate cuts in 2024. But the yellow metal spent little time at these highs, as the dollar rebounded sharply on dovish signals from other major central banks. Spot gold fell 0.4% to $2,173.62 an ounce, while gold futures expiring in April fell nearly 0.5% to $2,174.90 an ounce by 00:28 ET (04:28 GMT). Dollar strength pressures gold as major c.banks wax dovish Pressure on gold came chiefly from sharp gains in the dollar, with the dollar index hitting a three-week high above the 104 level. The greenback shot up as a surprise rate cut from the SNB, coupled with dovish signals from the Bank of England, left the greenback as the only major high-yielding, low risk currency. Signs of resilience in the U.S. economy- following an upbeat outlook from the Fed and strong purchasing managers index data- also kept traders geared heavily towards the dollar. This notion pressured metal markets, given that investing in precious metals such as gold offers no direct yields. Strength in the dollar is also expected to limit any major upside in bullion, at least until the Fed begins trimming interest rates later this year. The central bank is still pegged to cut rates by 25 basis points in June, according to the CME Fedwatch tool. An eventual lowering in interest rates is expected to benefit bullion prices later this year, with Citi analysts setting a year-end price target of $2,300 an ounce for the yellow metal. Other precious metals also retreated in Asian trade, relinquishing most of their gains made after the Fed. Platinum futures fell 0.7% to $905.10 an ounce, while silver futures slid 1% to $24.758 an ounce. Copper pulled off 11-mth peaks as China jitters grow Three-month copper futures on the London Metal Exchange slid 1% to $8,882.0 a ton, while one-month U.S. copper futures sank 1.2% to $4.0175 a pound. Both contracts fell sharply from 11-month highs hit earlier this week. Copper was also pressured by worsening sentiment towards China, with the country’s stock markets seeing steep declines on Friday amid concerns over slowing economic growth and more potential U.S. sanctions. But the outlook for copper markets remained tight, especially as recent reports showed major Chinese copper refiners planned to curb output this year. https://www.investing.com/news/commodities-news/gold-prices-fall-further-from-record-highs-as-dollar-reigns-after-snb-cut-3349203

2024-03-22 03:59

Copyrighted Image by: Reuters Investing.com-- Most Asian currencies fell sharply on Friday, coming under pressure from a rebound in the dollar as an unexpected interest rate cut by the Swiss National Bank pushed currency traders squarely into the greenback. The dollar surged to a three-week high in Asian trade, extending a strong rebound from Thursday as the SNB rate cut saw traders largely look past signals on interest rate cuts from the Federal Reserve. Dollar strong at 3-week high as SNB cut overshadows Fed outlook The dollar index and dollar index futures rose 0.8% and 0.2%, respectively in Asian trade on Thursday. Outsized gains in the dollar index signaled more immediate demand for the greenback. Both dollar indicators surged on Thursday after the SNB unexpectedly cut interest rates, becoming the first major central bank to do so after an extended hiking cycle in the wake of the COVID-19 pandemic. This left the dollar as the only low-risk, high-yielding currency in the interim. The greenback also benefited from a dovish outlook from the Bank of England on Thursday, which saw traders dump the pound in favor of the dollar. A positive outlook for the U.S. economy also favored flows into the dollar. The Fed sharply upgraded its outlook for growth in 2024. While the central bank is still expected to begin cutting interest rates by June, its relative hawkishness, in comparison to other central banks, is expected to benefit the dollar. USDCNY weakens past 7.2, PBOC seen intervening The Chinese yuan was among the worst hit by a stronger dollar, with the possibility of more interest rate cuts by the People’s Bank of China also adding to pressure. The USDCNY pair shot up 0.4% on Friday, crossing the 7.2 level for the first time since November 2023. Reports said that the PBOC was selling dollars and buying yuan from the open market to support the Chinese currency. Losses in the yuan came as top PBOC officials signaled that they still had more headroom to cut the bank’s reserve requirement ratio, which will unlock more liquidity in the economy. But such a move bodes poorly for the yuan. USDJPY reverses post-BOJ fall, back above 151 The Japanese yen was flat on Friday, but was nursing steep overnight losses as the USDJPY pair reversed most declines made after the Bank of Japan hiked interest rates this week. USDJPY hovered around 151.56- close to its highest level in four months. But further weakness in the yen was stalled by strong consumer price index data for February, which lent further credence to the BOJ’s recent policy pivot. Broader Asian currencies fell on Friday. The Australian dollar’s AUDUSD pair slid 0.6%, while the South Korean won’s USDKRW pair surged 0.4%. The Singapore dollar’s USDSGD pair rise 0.3%, while the Indian rupee’s USDINR pair moved further above 83 and closer to record-high territory. https://www.investing.com/news/forex-news/asia-fx-sinks-as-dollar-surges-to-3week-high-after-snb-rate-cut-3349197

2024-03-22 02:19

Copyrighted Image by: Reuters. Investing.com-- Oil prices settled lower Friday, ending the week with a loss as traders suggest signs of the Israel-Hamas ceasefire pointed to fewer supply disruptions in the Middle East. By 14:30 ET (18.30 GMT), the U.S. crude futures fell 0.5% to settle at $80.63 a barrel and the Brent contract fell 0.4% to $85.43 a barrel. Gaza ceasefire, strong dollar weigh Talks in Qatar on an ceasefire to temporarily halt the violence in Gaza continued to be closely monitored after.U.S. Secretary of State Antony Blinken touted optimism that deal could be reached. The talks come after The United Nations Security Council on Friday turned down a U.S.-led resolution calling for an immediate ceasefire in Gaza in exchange for the release of hostages following opposition from, Russia and China. Optimism, albeit slender of a ceasefire deal weighed on crude prices. Dollar strength also weighed on the crude prices as the greenback added to recent gains the euro and sterling amid expectations that the Bank of England and the European Central Bank could cut rates at a faster pace that the Fed can amid stronger U.S. growth Rig counts slip The number of oil rigs operating in the U.S. fell by one to 509 for the week ended Mar. 22, and fell by 84 on an annual basis, though expectations are for pick up refinery activity to support demand in the summer months. Tighter supply bets keeps oil elevated However, the market stabilized near the four-month highs seen earlier in March on the prospect of tighter global supplies and improving demand. U.S. inventories unexpectedly shrank in the week to March 15, while major members of the Organization of Petroleum Exporting Countries signaled they were reducing their oil exports. Russia launched the largest missile and drone attack on Ukrainian energy infrastructure of the war to date on Friday, hitting the country's largest dam and causing blackouts in several regions, Kyiv said. Ukraine has in recent weeks masterminded a series of attacks on Russian energy infrastructure. Expectations of tighter supplies were also accompanied by an improving outlook for demand, especially in the face of a stronger U.S. economy, and a potential recovery in China. U.S. manufacturing activity grew more than expected in March, while services remained in expansion, purchasing managers index data showed on Thursday. https://www.investing.com/news/commodities-news/oil-prices-pressured-by-gaza-ceasefire-chatter-strong-dollar-3349184

2024-03-21 19:06

Copyrighted Image by: Reuters Investing.com -- The euro will likely continue to struggle against the dollar as weaker economic growth and a faster pace of deflation in the European Union could likely force the European Central Bank to cut rates more aggressively than the Federal Reserve. EUR/USD fell 0.52% to $1.0862. "We continue to expect EUR/USD to decline," Morgan Stanley said in a recent note, highlighting several factors that will expand the divergence between US interest rates and EU rates including faster pace of deflation in EU and slower economic growth. The deceleration in European inflation, Morgan Stanley forecasts, will "happen faster and from a lower starting pace than US inflation," paving the way for the ECB to "signal a faster pace of cuts than currently implied." Bets on an ECB rate cut as soon as June were boosted on Wednesday, following the surprise move by the Swiss National Bank to lower its benchmark rate. Swaps are now pricing in a 90% chance of an ECB rate cut by June, up from about 80% on Wednesday, with just under four, or 90 basis points, or cuts now priced in. The strength of the growth in the U.S. compared in the EU, meanwhile, could encourage the Fed not to cut as low as during previous cycles, Morgan Stanley said. But other central banks including including the ECB may not have that luxury, paving the way for the USD to "likely retain a carry advantage over EUR," it added. Slower growth beyond the U.S. and ongoing geopolitical risks, meanwhile, is also likely to support a stronger greenback, "particularly as the US elections approach," Morgan Stanley said. https://www.investing.com/news/forex-news/eurusd-to-continue-to-decline-as-ecb-poised-to-cut-rates-faster-than-the-fed-ms-3348546

2024-03-21 15:54

Copyrighted Image by: Reuters Coinbase (COIN) price target raised at Needham on strong crypto volumes The Coinbase (NASDAQ:COIN) price target was raised to $275 from $220 per share at Needham & Company on Thursday, with the firm maintaining a Buy rating on the stock. The investment firm believes the sell-side is missing the extent to which retail has come back into the crypto space. In addition, they feel it is overstating institutional participation on the back of recent bitcoin ETFs. "While retail activity has cooled in the last several days, we expect Q1'24 to show strong participation from retail accounts, which benefits both HOOD (NASDAQ:HOOD) and COIN," said Needham & Company. "We are raising our Q1'24 estimates on COIN and HOOD," they added. "On COIN, we are also increasing our projected retail mix share vs institutional. HOOD's Q1 is also benefiting from a record month (Feb) for equity options volumes." Analysts at Needham cited outsized website traffic loads at Coinbase, volume share of underlying crypto assets this quarter, and app download rankings for HOOD, COIN, as indications that retail came back meaningfully in late February and early March before giving back some gains and falling in the rankings. https://www.investing.com/news/cryptocurrency-news/coinbase-price-target-raised-at-needham-on-strong-crypto-volumes-432SI-3348407