2024-01-25 09:13

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar traded in a tight range in early European trade Thursday, while the euro edged higher ahead of a widely-watched European Central Bank policy meeting. At 04:10 ET (09:10 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded just lower at 103.017, still not far from the six-week high of 103.82 seen on Tuesday. Dollar awaits fourth-quarter GDP The dollar has stabilized Thursday, dropping back slightly from the highs seen earlier in the week as traders consolidate positions ahead of the Federal Reserve's policy meeting next week. Traders have been scaling back expectations of early rate cuts from the Fed following pushback from central bankers and the release of data that has underscored the resiliency of the U.S. economy. Markets are now pricing in roughly a 50-50 chance of a cut in March, down from over 80% a month ago. There is more key data to digest before next week’s Fed meeting, starting with the first reading of fourth-quarter U.S. gross domestic product later in the session. This is expected to show 2% annualized growth, a hefty drop from the 4.9% growth seen in the third quarter, but still indicating that the U.S. avoided a recession in 2023. Euro steady ahead of ECB In Europe, EUR/USD traded 0.1% higher at 1.0896, ahead of the latest meeting of the European Central Bank. The central bank is virtually certain to keep interest rates at record highs, but there remains uncertainty over the future and when the officials will decide that they can start cutting rates in an attempt to boost growth in the bloc. Markets had expected a cut as soon as April, but have been dialing back pricing over the past few weeks as policymakers have pushed back on this aggressive pricing. With this in mind, President Christine Lagarde's post-meeting news conference will be of particular interest. “We would say that the ECB event risk … proves a mild upside risk to EUR/USD - but the carpet could be pulled from under the euro should President Lagarde somehow convey the message that the policy rate will be getting cut in the summer after all,” said analysts at ING, in a note. GBP/USD traded just higher at 1.2728, with sterling traders searching for cues ahead of next week’s Bank of England policy-setting meeting. Yen hands back some gains In Asia, USD/JPY rose 0.1% to 147.65, with the yen slipping slightly after sharp gains earlier this week. These came as Bank of Japan Governor Kazuo Ueda offered more signals on a potential pivot away from negative interest rates - which were a key pain point for the yen over the past two years. USD/CNY traded 0.2% higher to 7.1683, with the yuan slipping slightly after having received some support earlier in the week on hopes of improved Chinese economic prospects after the PBOC reduced banking reserve requirements. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVESTPROPLUS24 to get a limited time discount on our Pro+ subscription plans. Click here to find out more, and don't forget to use the discount code when checking out! https://www.investing.com/news/forex-news/dollar-steadies-ahead-of-4q-gdp-euro-awaits-ecb-meeting-3282504

2024-01-25 05:53

Copyrighted Image by: Reuters. Investing.com-- Gold prices nursed steep losses on Thursday as anticipation of a barrage of U.S. economic and interest rate cues kept traders averse to the yellow metal, while copper sat on strong gains this week following more stimulus measures from China. Bullion prices had fallen 0.7% on Wednesday, largely disregarding some weakness in the dollar as anticipation of key U.S. gross domestic product (GDP) and inflation data brewed more uncertainty over interest rates. The yellow metal was battered by increasing bets that the Federal Reserve will cut interest rates later, instead of earlier this year. A series of record-high finishes on Wall Street also dented demand for gold, as traders shifted towards more risk-heavy, high-yielding assets. But despite the losses, gold prices stuck largely to a $2,000 to $2,050 an ounce trading range established over the past week, as worsening geopolitical conditions in the Middle East spurred some safe-haven demand. Spot gold rose 0.1% to $2,015.36 an ounce, while gold futures expiring in February steadied at $2,015.20 an ounce by 00:38 ET (05:38 GMT). Futures prices falling below the spot rate indicated that traders expected a near-term decline in gold prices. US GDP, inflation data in focus before Fed meeting Market focus turned squarely towards key fourth-quarter GDP data due later on Thursday, which is expected to show some cooling in growth. But the U.S. economy is also expected to remain well ahead of its peers in the developed world. PCE price index data- the Fed’s preferred inflation gauge- is due on Friday, and is likely to show inflation remained sticky in December. Resilience in the U.S. economy and sticky inflation give the Fed more headroom to keep rates higher for longer- a warning that was voiced by several Fed officials earlier in January. Their warnings, coupled with strong inflation and labor market readings, saw traders steadily unwind bets that the Fed could begin cutting rates by as soon as March 2024. This trend saw gold prices mark a weak start to 2024. High rates increase the opportunity cost of buying bullion and diminish the yellow metal’s appeal. While gold is expected to eventually benefit from U.S. rate cuts this year, the potential timing of the cuts remains uncertain. Copper at 3-week high as China doles out more stimulus Among industrial metals, copper futures expiring in March fell 0.2% to $3.8678 a pound, but remained close to a three-week high hit on Wednesday. Sentiment towards the red metal was boosted by China’s central bank unexpectedly cutting its reserve requirement ratio for local banks, which is expected to release nearly $140 billion of liquidity into the economy. The People’s Bank also loosened lending requirements for the commodity-heavy property sector, and said it had more measures in the pipeline to foster a Chinese economic recovery. The moves helped ease concerns over weakening demand in the world’s largest copper importer- which were a key weight on prices of the red metal over the past year. But the demand outlook for copper remained uncertain, especially in the face of a potential downturn in the electric vehicle market. EV maker Tesla Inc (NASDAQ:TSLA) clocked weaker-than-expected fourth-quarter earnings and flagged weaker sales growth in 2024. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/commodities-news/gold-prices-skittish-before-gdp-data-copper-upbeat-on-china-stimulus-3282433

2024-01-25 04:33

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies fell slightly on Thursday, but were sitting on strong gains following more stimulus measures from China, while the dollar nursed some losses ahead of key fourth-quarter GDP data due later in the day. Sentiment towards regional currencies was aided by an unexpected cut to China’s RRR rate, which heralds more liquidity in the Chinese economy to spur growth. The People’s Bank of China also flagged more stimulus measures in the coming months to help support an economic recovery. The Chinese yuan fell 0.1%, given that increased liquidity presents more headwinds. But the currency still rebounded from recent lows on hopes of improved Chinese economic prospects. The PBOC also supported the yuan with a series of strong daily midpoints. Near-term optimism over China buoyed sentiment towards broader Asian currencies, particularly those with exposure to China. The Australian dollar rose slightly on Thursday after paring a bulk of its weekly losses. The South Korean won fell 0.3% even as data showed the economy grew more than expected in the fourth quarter. But the pace of growth still remained underwhelming. The Singapore dollar was flat on Thursday after paring all of its losses earlier in the week, while the Taiwan dollar rose 0.1%. The Japanese yen fell 0.1% after rising sharply earlier this week. Gains in the yen came as Bank of Japan Governor Kazuo Ueda offered more signals on a potential pivot away from negative interest rates- which were a key pain point for the yen over the past two years. Ueda said that the BOJ’s pivot will be largely dependent on the path of inflation, which turned market focus squarely to upcoming consumer price index readings from Tokyo, due on Friday. Dollar steadies near 1-week low before GDP, inflation and Fed cues The dollar index and dollar index futures rose slightly in Asian trade on Thursday, but were sitting close to a one-week low amid increased uncertainty before a barrage of signals on the U.S. economy and interest rates. Fourth-quarter gross domestic product data due later on Thursday is expected to show some cooling in growth. But U.S. economic growth is still expected to remain well ahead of its developed world peers. PCE price index data- the Federal Reserve’s preferred inflation gauge- is due on Friday, and is expected to show inflation remained sticky in December. Economic resilience and sticky inflation give the Fed more impetus to keep rates higher for longer. The data comes just days before the Fed’s first meeting of 2024, which will be closely watched for any cues on when the central bank will begin trimming interest rates. The dollar recently shot up to six-week highs amid growing conviction that rate cuts will come later, rather than earlier, in 2024. This trend saw most Asian currencies mark a weak start to 2024. The CME Fedwatch tool showed traders pricing in a 55.6% chance the Fed will leave rates unchanged in March. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/forex-news/asia-fx-steady-amid-china-stimulus-cheer-dollar-muted-before-gdp-data-3282398

2024-01-25 01:20

Copyrighted Image by: Reuters. Investing.com-- Oil prices rose in Asian trade on Thursday, extending gains to near one-month highs following stimulus measures from top importer China, although anticipation of key U.S. economic readings kept traders on edge. Prices were also encouraged by a series of strong purchasing managers index readings from the U.S. and UK, which showed an improvement in business activity through early-January, offering positive cues for crude demand. The recent gains put oil prices close to their highest levels since late-December, with Brent now trading back above $80 a barrel. Oil prices were also trading positive for 2024 after a rough start to the year. The People’s Bank of China on Wednesday unexpectedly cut reserve requirements for local banks, freeing up more liquidity in another attempt to foster economic growth. The move ramped up hopes over an economic rebound in the world’s largest oil importer, which was grappling with weak growth through 2023. Data showing a massive drawdown in U.S. oil inventories also aided oil prices, especially as severe cold weather conditions disrupted crude production in the country. But this notion was offset by a sustained build in gasoline inventories, as cold weather also dissuaded travel. Brent oil futures expiring in March rose 0.3% to $80.30 a barrel, while West Texas Intermediate crude futures rose 0.4% to $75.27 a barrel by 20:03 ET (01:03 GMT). Both contracts were close to levels last seen in late-December. U.S. production disruptions added to concerns over tighter supplies in the coming months, especially as a conflict in the Middle East showed little signs of stopping. U.S.-led forces carried out more strikes on the Iran-aligned Houthi group in Yemen, while the Israel-Hamas war raged on. A softer dollar also aided oil prices, as traders locked-in recent profits in the greenback after it surged to six-week highs. But the dollar steadied on Thursday, in anticipation of several key U.S. economic cues, as well as a Federal Reserve meeting next week. US Q4 GDP, more interest rate cues awaited Focus now was largely on fourth-quarter U.S. gross domestic product data, due later on Thursday, for more cues on the world’s largest fuel consumer. The data is expected to show some cooling in growth, as the effects of high interest rates are baked into the economy. PCE price index data- the Fed’s preferred inflation gauge, is due on Friday, and is expected to show that inflation remained sticky in December, giving the bank more impetus to keep rates higher for longer. The readings come just days before the Fed’s first meeting of 2024, where the central bank is widely expected to keep rates at 23-year highs. Fears of softening demand- amid easing economic growth and high interest rates- were a key point of concern for oil markets through 2023, limiting gains from any supply reductions. This notion is likely to persist, amid waning bets on early interest rate cuts from the Fed. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/commodities-news/oil-prices-near-1mth-high-on-demand-hopes-us-gdp-awaited-3282379

2024-01-25 01:20

Copyrighted Image by: Reuters. Investing.com -- Oil prices settled at eight-week highs on Thursday as stronger U.S. economic data eased worries about slowing global growth, boosting the demand outlook just a day after China rolled out monetary policy stimulus to prop up its economy. By 14:30 ET (19.30 GMT), the U.S. crude futures settled 3% higher at $77.36 a barrel, the highest since Nov. 30, and the Brent contract climbed 3% to $82.43 a barrel. U.S. economy grows more than expected in Q4 to allay crude demand concerns The U.S. economy grew at a faster than anticipated rate in the fourth quarter, according to data released earlier Thursday, further easing worries that slowing global growth will derail demand. The more sanguine economic growth picture in the U.S. comes on the heels of fresh optimism on China growth after People’s Bank of China on Wednesday unexpectedly cut reserve requirements for local banks, freeing up more liquidity in another attempt to foster economic growth in the world’s largest oil importer. The fresh stimulus from China fueled expectations that Chinese authorities "will consider a package of measures to stabilise the slumping equity market," ANZ Research said in a recent note. Middle East tensions continue to offer support, but may soon run out of road amid hopes for potential Gaza truce Tensions also remain raised in the Middle East, as the war between Israel and Hamas in Gaza rages on and Iran-backed Houthi militants continue to threaten shipping in the Red Sea, a crucial artery for shipping between Europe and Asia. But the risk of supply disruptions "emanating from the Israel-Hamas war are also easing," ANZ Research added, as talks of ceasefire in Gaza intensify, with "Arab nations working on an initiative that could offer Israel further normalisation of relations with Arab states." But there still remain fundamental hurdles between Israel and Hamas that need to be worked out for a longer-term ceasefire. Upgrade your decision-making with InvestingPro+! Using discount code “INVEST2024” receive an additional 10% off the InvestingPro+ yearly subscription. Click here and don't forget the discount code. https://www.investing.com/news/commodities-news/oil-prices-settle-at-8week-highs-as-stronger-us-growth-lifts-demand-outlook-3282379

2024-01-24 10:09

SAN FRANCISCO - In a significant move for the blockchain industry, Chainlink Automation has been integrated into Coinbase (NASDAQ:COIN)'s Base L2 network. This strategic partnership is set to reduce transaction costs for developers by as much as 90%, marking a substantial step forward in making blockchain development more accessible and cost-effective. The collaboration between Chainlink and Coinbase is not just about lowering costs. It also aims to enhance the scalability of smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. By integrating Chainlink Automation into the Base L2 network, developers are now equipped with advanced tools to create and manage decentralized applications (dApps) more efficiently. One of the key features that this integration brings to the table is Chainlink's Data Feeds. These feeds provide reliable and tamper-proof data for smart contracts, enabling them to interact with real-world information in a secure and dependable manner. Furthermore, the partnership fosters cross-chain interoperability, which is the ability for different blockchain networks to communicate and share information. This is crucial for the widespread adoption and functionality of dApps across various blockchain platforms. The integration of Chainlink Automation into Coinbase's Base L2 network is a testament to the ongoing efforts to streamline blockchain technology for wider use and to propel the development of the Web3 space. By providing developers with the tools to build dApps with lower transaction costs and enhanced capabilities, this partnership is paving the way for the next generation of decentralized applications and services. https://www.investing.com/news/cryptocurrency-news/chainlink-automation-joins-coinbases-base-l2-to-cut-developer-costs-93CH-3281414