2024-01-22 15:09

Copyrighted Image by: Reuters. TOKYO - In the financial markets today, currency stability was the theme as investors positioned themselves ahead of key central bank meetings in Japan and Europe. The Japanese yen saw a notable uptick, trading at 147.74 to the dollar, as the market anticipates the Bank of Japan's upcoming policy meeting. The expectation is that the bank will maintain its negative interest rates, a stance that has gained further support following the recent earthquake in Japan. The dollar index, which measures the greenback against a basket of major currencies, remained relatively unchanged at 103.24. Meanwhile, the euro experienced a slight decline, trading at $1.0888, and the British pound edged higher, reaching $1.27095. Investors have also recalibrated their expectations for the U.S. Federal Reserve's next interest rate move. Initially, a rate cut was anticipated as early as March, but strong U.S. economic data has shifted this forecast to May. This suggests that the Fed may take a more cautious approach to altering its monetary policy, despite previous anticipation of a rate reduction. Attention is also turning to the European Central Bank (ECB), which is set to discuss its own monetary policy on Thursday. With the global supply chain facing disruptions, notably those affecting trade routes through the Red Sea, the ECB may find itself balancing the need to support economic growth with the pressures of external trade challenges. These disruptions have led to a reassessment of the timeline for a potential rate cut by the ECB, as the central bank weighs the impact of these issues on the broader economic landscape. https://www.investing.com/news/forex-news/yen-strengthens-ahead-of-bank-of-japan-meeting-markets-await-central-bank-decisions-93CH-3279791

2024-01-22 12:24

JANUARY 2024 - Ethereum is advancing its scalability and cost-efficiency with significant upgrades and Layer 2 solutions. The Goerli testnet has recently introduced the Dencun upgrade, which is a pivotal development in Ethereum's journey towards improved scalability. This upgrade encompasses EIP-4844 and is designed to pave the way for proto-danksharding and blob transactions, which are expected to significantly reduce Layer 2 fees. In parallel, Arbitrum, a product of Offchain Labs, is making use of Optimistic Rollups to enhance transaction processing. By handling transactions off-chain and then summarizing them on-chain, Arbitrum aims to boost throughput and security, reflecting a concerted effort to refine Ethereum's network functionality. These innovations are seen as vital to supporting the expanding realm of decentralized finance. https://www.investing.com/news/cryptocurrency-news/ethereum-advances-scalability-with-goerli-testnet-dencun-upgrade-93CH-3279547

2024-01-22 11:15

Copyrighted Image by: Reuters. LONDON - The British Pound (GBP) and the Australian Dollar (AUD) are steadying as investors and traders anticipate the release of crucial economic indicators scheduled for Wednesday. Market participants are closely monitoring the upcoming data to gauge the economic health of the UK and Australia, which could significantly influence the direction of these currencies. The GBP/AUD exchange rate has remained relatively stable recently, despite concerns of a potential technical recession in the UK and ongoing geopolitical tensions that have broadly impacted market sentiment. In the UK, the focus is on the upcoming Purchasing Managers' Index (PMI) reports. The services sector PMI is expected to indicate an expansion, which could lend some support to the Sterling if the data aligns with forecasts. However, there is a contrasting expectation for the manufacturing sector, where a contraction is anticipated. The mixed outlook for these sectors underscores the challenges facing the UK economy as it navigates a complex economic landscape. Meanwhile, the Australian Dollar's movements have been somewhat restrained, with China's economic policy signals being a key factor. As Australia's largest trading partner, any economic policy changes in China can have a significant impact on the Australian economy and its currency. Additionally, shifts in business confidence within Australia could also play a role in the AUD's performance, making the upcoming indicators important for investors watching the currency. Traders and analysts alike are keeping a close eye on these developments, understanding that the forthcoming economic data will likely provide a clearer picture of the economic trajectory for both the UK and Australia, which in turn will influence the GBP/AUD exchange rate dynamics. https://www.investing.com/news/forex-news/sterling-and-australian-dollar-brace-for-economic-data-release-93CH-3279362

2024-01-22 10:06

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar drifted lower in early European trading Monday, at the start of a week that includes key U.S. growth and inflation data as well as the first major central bank meetings of the new year. At 04:00 ET (09:00 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 102.984, retreating from recent one-month highs. Dollar drifts lower ahead of key data The greenback ended last week on the up as signs of resilience in the U.S. economy prompted traders to rein in expectations of early interest rate cuts by the Federal Reserve. However, the new week has started with traders banking some profits ahead of the release later in the week of fourth-quarter growth numbers as well as a key U.S. inflation reading. The government is scheduled to release data on fourth quarter GDP on Thursday, which is expected to come in at 2.0% after a 4.9% increase in the prior quarter. “Our macro team forecasts above-consensus fourth quarter GDP,” said analysts at ING, in a note. “This could see the market further pare back Federal Reserve easing expectations this year. The market currently attaches a 43% chance of a cut in March and an easing cycle this year now worth 115bp.” December's personal consumption expenditures data is also due on Thursday, and comes after the consumer price index increased 2.6% in the 12 months to November and monthly prices fell for the first time in more than three and a half years. ECB meeting looms large In Europe, EUR/USD traded largely unchanged at 1.0896, as the attention turns to the European Central Bank’s policy-setting meeting on Thursday. The ECB is certain to keep rates steady, having stopped hikes in October, but investors will be carefully studying the associated comments from President Christine Lagarde as they look for interest rate cuts later in the year. Traders are currently looking for cuts to possibly start as early as April, but Lagarde is likely to continue signalling it is too early to discuss rate cuts, especially as she, along with a number of her colleagues, have consistently downplayed expectations for early rate cuts. “Our baseline view sees EUR/USD hanging around these 1.09 levels as the ECB tries to re-position for a data-dependent approach for future policy,” added ING. Wednesday sees the release of flash Purchasing Managers' Index readings for the eurozone, and are expected to show that business activity remains in contraction territory. GBP/USD traded largely unchanged at 1.2700, with sterling remaining supported despite Friday’s weak retail sales release. U.K. inflation unexpectedly accelerated in December, data released last week showed, implying that the central bank will be slower to cut rates than its peers. BOJ meeting in focus In Asia, USD/JPY edged lower to 148.12, with traders cautiously awaiting the conclusion of a Bank of Japan meeting overnight, where the central bank is widely expected to maintain negative interest rates and its yield curve control mechanisms. The devastating earthquake at the beginning of the year is expected to add to softening inflation and sluggish wage growth as reasons the BOJ will maintain its ultra-easy monetary policy, at least for now. USD/CNY traded just higher at 7.1956, after the People’s Bank of China held its benchmark loan prime rate at record lows on Sunday. The central bank has limited headroom to loosen policy further, as it struggles to strike a balance between supporting an economic recovery and preventing more yuan weakness. https://www.investing.com/news/forex-news/dollar-edges-lower-ahead-of-key-data-ecb-meeting-looms-large-3279286

2024-01-22 08:12

Copyrighted Image by: Reuters. NEW YORK - The U.S. Securities and Exchange Commission (SEC) is currently reviewing applications from two major exchange operators, Nasdaq and Cboe Global Markets (NYSE:CBOE), to introduce options trading for Bitcoin-related exchange-traded funds (ETFs). Nasdaq has submitted a proposal to list options for BlackRock (NYSE:BLK)'s Bitcoin trust, IBIT. Meanwhile, Cboe Global Markets is aiming to launch options on various Bitcoin-related exchange-traded products. The move by both exchanges indicates a growing interest in providing traditional investors with regulated avenues for gaining exposure to the cryptocurrency market. As the review process is underway, market analysts are anticipating that the SEC could grant approval for these new offerings as early as late February. However, they also caution that the decision may be pushed back as far as September 21, depending on the regulatory body's assessment. The SEC has set a public comment period of 21 days for stakeholders and members of the public to provide their input on the proposed Bitcoin ETF options. This period is a standard regulatory procedure allowing for transparency and public participation in the decision-making process. The outcome of the SEC's review is eagerly awaited by investors and the cryptocurrency community, as it could potentially open up new opportunities for investment and broaden the acceptance of cryptocurrencies in the financial markets. https://www.investing.com/news/cryptocurrency-news/nasdaq-and-cboe-seek-sec-approval-for-bitcoin-etf-options-trading-93CH-3279201

2024-01-22 05:56

Copyrighted Image by: Reuters Investing.com-- Gold prices fell in Asian trade on Monday amid increasing bets that the Federal Reserve will keep interest rates higher for longer, although some safe-haven demand and near-term dollar weakness kept the yellow metal above key levels. Bullion prices were hit with a heavy dose of profit-taking in January as traders unwound bets that the Fed will begin cutting interest rates by as soon as March 2024. This unwinding came to a head late last week when the yellow metal fell close to breaking below the $2,000 an ounce level. But gold found strong support at that level, aided chiefly by increased safe-haven demand in the face of a worsening conflict in the Middle East. Some near-term profit-taking in the dollar, which fell from an over one-month low on Monday, also aided bullion prices. But gold remained under pressure from the prospect of higher-for-longer U.S. rates. Spot gold fell 0.3% to $2,022.91 an ounce, while gold futures expiring in February fell 0.2% to $2,024.30 an ounce by 00:31 ET (05:31 GMT). Markets reverse March rate-cut bets, Fed now expected to hold The CME Fedwatch tool showed on Monday that traders were now pricing in a greater chance that the Fed will keep rates steady in March, as opposed to initial expectations for a cut. The tool showed a 52.9% chance for the Fed to keep rates steady, up sharply from a 19% chance seen last week. Traders were also pricing in a 46.2% chance for a 25 basis point cut, down sharply from a 76.3% chance seen a week ago. The shift in expectations came amid a chorus of Fed officials stating that it was too early for the central bank to consider rate cuts, especially as inflation remained sticky. The central bank is also widely expected to keep rates on hold when it meets next week. But before that, a string of key U.S. economic readings are due this week. Fourth-quarter GDP data is due on Thursday, while PCE price index data- which is the Fed’s preferred inflation gauge- is due on Friday. Both readings are widely expected to factor into the Fed’s plans for rates this year. While gold is expected to eventually benefit from the Fed’s rate cuts, the timing and scale of the potential cuts remains uncertain. Copper edges lower, China outlook remains weak Among industrial metals, copper prices fell slightly on Monday, and retained a bulk of their losses made so far in January. Copper futures expiring in March fell 0.4% to $3.7752 a pound, and were down 3% so far in January. The red metal was battered by growing doubts over an economic recovery in top importer China, after the country clocked underwhelming GDP figures for the fourth quarter. Sentiment towards China showed little sign of improvement on Monday, after the People’s Bank of China kept its benchmark lending rates at record lows, signaling that it had limited headroom to loosen policy further and support growth. Beyond China, a slew of purchasing managers index readings from several major economies are on tap this week, and are expected to show sustained weakness in business activity. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVSPRO2024 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-edge-lower-in-face-of-higherforlonger-rates-3279123