2023-11-24 05:22

Copyrighted Image by: Reuters. In today's Asian market session, gold prices exhibited narrow trading as investors processed the latest cues from the Federal Reserve and anticipated the release of flash US PMI data. The precious metal found immediate support in the range of $1,989-$1,988, with additional backing from the 200-day Simple Moving Average (SMA) near $1,940. This cautious trading follows a modest rise on Thursday, where gold edged higher but did not surpass the critical threshold of $2,000 per ounce. The upward movement was partly attributed to dovish expectations for future Federal Reserve interest rate hikes after an October inflation report suggested a weakening in the U.S. dollar's strength. Despite facing resistance just below $2,000, daily chart oscillators have remained positive. The market's hesitation comes in the wake of hawkish minutes from Tuesday's FOMC meeting, which tempered some investors' expectations for imminent rate reductions. This has added to the complexity of predicting gold's short-term price movements. Central banks' record purchases of gold last year were also spotlighted as a testament to the metal's enduring status as a reserve asset during times of economic uncertainty. This backdrop of robust institutional demand underscores gold's appeal as a haven asset amid global financial volatility. https://www.investing.com/news/commodities-news/gold-holds-steady-as-investors-weigh-fed-signals-and-await-us-pmi-data-93CH-3242358

2023-11-24 04:19

Copyrighted Image by: Reuters. Investing.com-- Asian currencies kept to a tight range on Friday, while the dollar moved little as a U.S. market holiday made for scant trading, although focus now turned to key business activity readings due later in the day. Most regional currencies were set for some weekly gains amid growing conviction that the Federal Reserve was done raising interest rates. This notion had put the dollar at near three-month lows at the beginning of the week. But the greenback saw some strength in recent sessions, following strong U.S. labor data and some hawkish signals from the minutes of the Fed’s recent meeting. Weak purchasing managers index (PMI) readings from the euro zone and Japan provided negative cues to regional markets, as the outlook for the global economy weakened. Trading volumes were also muted on account of a U.S. holiday. In Asia, the Chinese yuan fell 0.1%, but remained within sight of a four-month high after a series of strong daily midpoint fixes by the People’s Bank of China. Markets were also awaiting PMI readings from China next week, amid persistent concerns over a sluggish economic rebound. The yuan was up 0.8% this week- its fourth straight week of gains as it extended a rebound from an over one-year low. The Japanese yen rose 0.1%, as data showed that consumer inflation grew slightly less than expected in October. The reading, coupled with weak PMI data for November, give the Bank of Japan more headroom to maintain its ultra-dovish policy. The Australian dollar was flat but was headed for a 0.7% weekly gain following somewhat hawkish signals on inflation from the Reserve Bank. The South Korean won fell 0.3% and was set for a 0.7% weekly decline. The Indian rupee traded sideways after hitting a record low earlier in the week, as the country’s growing trade deficit largely offset relief from weakness in the dollar. Among Southeast Asian currencies, the Singapore dollar was muted even as recent data showed that inflation in the island state picked up in October, growing more than expected. Dollar subdued after Thanksgiving holiday, PMIs on tap The dollar index and dollar index futures moved little in Asian trade on Friday, after U.S. markets were closed in the prior session for Thanksgiving. The greenback rebounded mildly from a near three-month low this week, as markets second-guessed expectations for when the Fed planned to begin trimming interest rates. The minutes of the central bank’s late-October meeting showed policymakers largely supporting a higher-for-longer outlook for rates, given some recent resilience in the U.S. economy. PMI data due later in the day is expected to provide more cues on that front. But U.S. manufacturing activity is expected to have slipped back into contraction after a brief rise in October. https://www.investing.com/news/forex-news/asia-fx-muted-dollar-subdued-with-us-pmis-in-sight-3242333

2023-11-24 03:56

The global beef market is experiencing a notable divergence, with North American cattle markets displaying resilience while southern hemisphere countries face significant price drops, according to the latest Rabobank Beef Quarterly Report. The report highlights a stable price environment in the United States and a 3% increase in Canada between June and October, contrasting sharply with the southern hemisphere's steep declines. In Australia, beef prices have plummeted by 28%, with New Zealand and Brazil also experiencing downturns. Despite these countries ramping up production, it hasn't been sufficient to compensate for reduced outputs in Europe and the US. New Zealand did witness a temporary price surge due to a decrease in slaughters as the season approached its low months, with North Island bull prices peaking at $6.15/kg on October 27 before slipping back to $5.95/kg. September's beef export data painted a picture of contraction with a year-on-year decline of 5% across the board. China's reduced consumer demand has led to a significant volume drop of 30%, while the US has seen its exports increase by 35%, buoyed by strong domestic consumption. Looking ahead, global beef production is forecasted to shrink by another 1% through the next year. The US, in particular, is preparing for further production cuts estimated at 4.5%, which will amplify its net-import position as domestic consumption also falls by 3%. The post-covid landscape has seen growth in beef consumption stall, especially across Asian markets where buyer caution persists despite economic recoveries. This trend is expected to continue into the coming year. However, despite less than 1% of worldwide imports being affected by Middle Eastern unrests, global beef trade remains relatively stable. Mexico has emerged alongside Australia and New Zealand as one of the main beneficiaries during these shifting market conditions. Rabobank senior analysts emphasized that stability is still present in global beef trade despite these regional variances and challenges. https://www.investing.com/news/commodities-news/global-beef-market-sees-divergence-as-north-america-holds-steady-southern-hemisphere-falters-93CH-3242327

2023-11-24 03:09

Copyrighted Image by: Reuters. The New Zealand dollar (NZD) sustained its upward momentum against the US dollar (USD) today, maintaining its position in the mid-0.6000s for the second consecutive day. This steady climb is underpinned by New Zealand's third-quarter retail sales data, which defied expectations by remaining flat, contrasting with an anticipated decline of 0.8%. Adding to the NZD's strength, retail sales excluding vehicles saw a notable increase of 1%, significantly outperforming the forecasted 1.5% contraction. Earlier this week, the NZD/USD pair hit its highest point since August 10, although it has not managed to break above this peak since then. The slight uptick in the USD has curbed further gains for the NZD/USD pair, which continues to trade within a precise four-day-old range. Investors are now looking ahead to several key events that could influence the currency pair's trajectory. Next week's Reserve Bank of New Zealand (RBNZ) meeting is highly anticipated, as market participants seek clarity on future monetary policy. Additionally, today's release of US Purchasing Managers' Index (PMI) figures is expected to provide further direction. The sentiment in the market has also been shaped by recent minutes from the Federal Open Market Committee (FOMC), which conveyed a hawkish tone. This was further bolstered by reports on Wednesday indicating a robust US labor market and an uptick in consumer sentiment. Speculation about a potential Federal Reserve interest rate cut by May 2024 is being incorporated into forecasts, signaling that investors are adjusting their long-term strategies based on these expectations. As market players await today's early North American session for possible PMI-driven volatility, caution is advised due to investment risks that could cause potential emotional distress among investors. https://www.investing.com/news/forex-news/nzdusd-continues-upward-trend-amid-positive-new-zealand-retail-data-93CH-3242318

2023-11-24 03:05

Copyrighted Image by: Reuters. ISLAMABAD - Pakistan's foreign exchange reserves have witnessed a significant decline, with the State Bank of Pakistan (SBP) reporting a substantial drop in central bank forex reserves. The SBP's reserves fell by $217 million, reaching a new low of $7.180 billion as of November 17, largely due to ongoing debt repayments and challenges in the external financing environment. This decrease comes despite previous financial support including a $3 billion IMF stand-by arrangement received in July and aid from Saudi Arabia and UAE. The total national reserves, which include commercial banks' holdings, were down by $233 million, standing at $12.302 billion after commercial banks' reserves decreased by $17 million to $5.122 billion. The reduction in reserves is attributed to increased import payments and a lack of fresh inflows, prompting Pakistan to face volatile financial dynamics and reassess its future investment strategies under economic pressures. The country is also grappling with an expanding current account deficit, driven by heightened import volumes in October. However, there is an anticipation of financial relief on the horizon for Islamabad. The IMF executive board is expected to approve a crucial tranche worth $700 million under its stand-by arrangement in early December following a positive initial review. This potential funding boost is part of an anticipated injection of close to $1.2 billion from international financial institutions such as the World Bank and Asian Development Bank ahead of the new year. Additional monetary assistance from Gulf partners is also projected. In light of these developments, Roshan Digital Account deposits have surpassed the $7 billion mark, buoyed by ongoing contributions from overseas Pakistanis even after a slowdown following an increase in NPC rates. Despite the current account challenges, experts maintain that fiscal deficits should remain within manageable limits due to the expected inflow of foreign funds and continued support from the IMF. https://www.investing.com/news/forex-news/pakistans-forex-reserves-dip-to-72-billion-amid-debt-repayments-93CH-3242317

2023-11-24 02:01

Copyrighted Image by: Reuters In the span of just two days before its public launch, Blast's new Ethereum layer 2 project has seen a surge in deposits, reaching $310 million. This influx of capital is attributed to the attractive liquidity migration incentives and yields of up to 5% on staked assets, leveraging MakerDAO's protocols. The project, which includes a decentralized marketplace, has tapped into the growing demand for high-yield DeFi opportunities. The initial success of Blast's venture is evident from its ability to attract significant deposits during its closed beta phase, which requires an invite link to access. This early adoption signals a strong product-market fit and suggests potential for widespread impact as it prepares for a public launch. An airdrop is also planned for contributors to the ecosystem, further bolstering investor interest. Despite the strong start and backing by prominent investors such as Paradigm and eGirl Capital, the project has not been without its detractors. Some industry observers have raised concerns over the security of Blast Bridge's operations and its dependence on Lido's liquid-staking protocol. Criticism has also been aimed at the platform's use of an unverified chain managed by anonymous developers with a multisig setup. Additionally, the points system employed by Blast Bridge has drawn comparisons to a Ponzi scheme due to the inability to access funds before activation. As this Ethereum layer 2 project moves towards its public unveiling, it will be critical for Blast to address these security and operational concerns to maintain market confidence and build upon its early momentum. InvestingPro Insights The excitement surrounding Blast's Ethereum layer 2 project is palpable, as evidenced by the significant $310 million in deposits during its closed beta phase. This enthusiasm is mirrored in the broader market, where investors are keenly eyeing companies with strong growth prospects. According to real-time data from InvestingPro, the market has shown a notable appetite for high-growth potential, with the PEG Ratio (Price/Earnings to Growth Ratio) for the last twelve months as of Q3 2023 standing at 1.04. This figure suggests that investors are pricing companies nearly in line with their earnings growth projections, indicating a balanced view of value to growth. InvestingPro Tips highlight that companies with robust revenue growth, like the 10.32% increase seen in the last twelve months as of Q3 2023, are often at the forefront of investor interest. This is further supported by the Quarterly Revenue Growth of 12.57% for Q3 2023. Additionally, a solid Gross Profit Margin of 46.24% for the same period underscores the efficiency with which these firms are translating sales into profits, a key metric that savvy investors watch closely. For those seeking to delve deeper into such financial nuances, InvestingPro offers an extensive list of additional tips, with the current subscription now on a special Black Friday sale featuring a discount of up to 55%. Subscribers can access a comprehensive suite of tips, with many more listed on InvestingPro, providing valuable insights that could help in making informed investment decisions. https://www.investing.com/news/cryptocurrency-news/blasts-ethereum-venture-attracts-310m-faces-security-scrutiny-93CH-3242305