2023-11-22 18:14

Copyrighted Image by: Reuters. The oil market is on alert for a possible decline to $74 per barrel as recent developments suggest a shift in the supply-demand dynamic. Following the release of the Federal Reserve's minutes which indicated a consensus on maintaining interest rates, the US dollar has strengthened. Meanwhile, the American Petroleum Institute (API) reported a substantial increase in US crude inventories, with a jump of over 9 million barrels as of Tuesday. Today, the Energy Information Administration (EIA) is set to release its crude stockpile change report, with expectations pointing to a minor build. Additionally, natural gas storage change figures and Baker Hughes's oil rig count update are also due today, potentially influencing market sentiment. On Tuesday, Morgan Stanley provided insights into the oil market's trajectory, suggesting that Brent crude could stabilize around $85 per barrel. This forecast is based on OPEC's ongoing production curtailments and an expected steady demand for OPEC oil at approximately 28.3 million barrels per day until at least 2024. The firm also anticipates Saudi Arabia may extend its production cuts beyond the official quota. Adding to market uncertainty, OPEC Plus has postponed its policy meeting from November 26 to November 30, causing Brent crude to dip below $80. Despite a notable reduction in U.S. output and an overall cut of over five million barrels per day by OPEC Plus members, Morgan Stanley projects that non-OPEC supply growth will match the slowing demand increase anticipated in the coming year. Current prices show West Texas Intermediate (WTI) trading at $77.36 and Brent at $82.03 per barrel. Technical analysis suggests that there is resistance near $80 and support around $74, with market participants closely monitoring the potential for OPEC+ intervention should prices continue to fall. https://www.investing.com/news/commodities-news/oil-prices-face-potential-drop-as-ceasefire-and-inventory-data-weigh-93CH-3241590

2023-11-22 18:06

Copyrighted Image by: Reuters. The price of spot gold experienced a notable fluctuation today, briefly surpassing the significant $2,000 threshold before slipping below this mark. The initial climb took gold to $2,006.48, but the momentum was short-lived as shifts in investor sentiment occurred in response to recent US economic data. Key indicators contributing to the change in market mood included a report of decreasing jobless claims, which hit a five-week low at 209,000, suggesting a tighter labor market. Additionally, Treasury yields exhibited fluctuations that typically influence the direction of non-yielding bullion. Adding to the mix was the University of Michigan's inflation expectation report, which highlighted that consumers anticipate an inflation rate of around 3.2% over the next five years. This projection is closely monitored as it can impact the Federal Reserve's interest rate decisions and reflects the persistent concern over inflation becoming entrenched if expectations remain elevated. Despite the pullback in gold prices to below $1,990, near the 50-hour Simple Moving Average (SMA), and facing resistance at the $2,000 level, gold has maintained a substantial gain from its recent lows. The precious metal's value is still over 3% higher than its recent trough, finding support from the 200-day SMA at roughly $1,931. Investors continue to monitor these economic indicators closely as they assess the potential for future rate cuts by the Federal Reserve and gauge the overall health of the economy. The interplay between job market strength, consumer expectations on inflation, and Treasury yield movements will remain critical factors influencing gold prices in the near term. https://www.investing.com/news/commodities-news/gold-prices-retreat-from-2000-peak-after-us-economic-data-93CH-3241589

2023-11-22 18:00

Copyrighted Image by: Reuters. The leading African cryptocurrency exchange, VALR, has introduced innovative financial instruments to its platform, including Bitcoin and Tether (USDT) perpetual futures paired with the South African Rand (ZAR). These additions, which include the BTC/USDT pair, are significant for traders as they don't have an expiry date and offer up to five times leverage. COO Gianluca Sacco praised the platform's integrated trading ecosystem that combines spot, margin, and futures markets using a single collateral source. This development follows the exchange's success in spot margin trading and a collaboration with Visa (NYSE:V). VALR's growth is further underscored by its recent European regulatory approval and its pursuit of licenses in Mauritius and Dubai, having already received a preliminary nod from the Virtual Asset Regulatory Authority (VARA) in Dubai. Founded in 2018, VALR has achieved over $10 billion in trade volume and boasts a solid client base with more than 500,000 retail customers and over 900 institutional partners. The exchange has also secured $55 million in equity funding from prominent investors like Coinbase (NASDAQ:COIN) Ventures and Pantera Capital. Operating under VALR DAM Proprietary Limited, it is authorized by Prime Asset Managers in South Africa and is looking forward to expanding its services through mobile app support. CEO Farzam Ehsani has highlighted positive institutional feedback, positioning VALR as a strong contender on the global exchange stage. https://www.investing.com/news/cryptocurrency-news/valr-leads-african-crypto-market-with-new-futures-and-leverage-options-93CH-3241587

2023-11-22 17:27

Copyrighted Image by: Reuters. The GBP/USD currency pair took a sharp dive today, reaching a level of 1.2456, which represents about a 0.63% decrease. This movement is largely attributed to recent U.S. economic data suggesting that inflationary pressures remain and the economy may be deliberately slowing down as part of the Federal Reserve's broader strategy. The University of Michigan reported an increase in near-term inflation expectations to approximately 4.5%, which stands in stark contrast to the lower consumer sentiment that was recorded at just above sixty-one points on the index. In the UK, Chancellor Jeremy Hunt has highlighted austerity measures with a focus on reducing debt and achieving an inflation target collaboratively set by his office and the Bank of England. The target is expected to be around two percent by the end of 2025 according to projections by the Office for Budget Responsibility (OBR). The OBR has also revised its GDP growth forecasts downward since March, now anticipating only around a 0.7% growth, which is slightly higher than the 0.6% growth projected for last year. https://www.investing.com/news/forex-news/pound-falls-as-us-inflation-data-weighs-on-gbpusd-93CH-3241577

2023-11-22 17:22

Copyrighted Image by: Reuters In the wake of Binance's substantial penalty from the Department of Justice and the stepping down of its CEO, Changpeng Zhao, Coinbase (NASDAQ:COIN)'s Brian Armstrong has underscored the importance of compliance and economic freedom as foundational principles for his company. Since its inception in 2012, Coinbase has consistently focused on adhering to regulations by obtaining the necessary licenses and building a robust legal team. Armstrong believes that operating within the law is critical, even if it means slower product development. He sees the recent turmoil as an opportunity to encourage the establishment of clear-cut regulations in the United States, aiming to diminish dependence on unregulated international platforms. His commitment to following US regulations is unwavering, and he places his confidence in the democratic process to maintain economic freedom within the cryptocurrency industry. Yesterday, Armstrong endorsed his company’s regulatory compliance after competitor Binance admitted criminal responsibility. Highlighting his aim for Coinbase to be a generational entity and emphasizing trust in their brand, Armstrong detailed their efforts in obtaining necessary licenses and establishing a strong legal framework, accepting slower progress as a trade-off for adherence to the law. Also yesterday, the Department of Justice announced Binance’s admission of guilt regarding Bank Secrecy Act violations and operating without money transmitter licenses. Armstrong criticized ambiguous American regulations that he feels push investors towards offshore unregulated exchanges but hoped that Binance’s situation might lead to more definitive guidelines. Armstrong referenced SEC objections during the Celsius restructuring case as an example of unclear regulation contributing to a majority of crypto transactions moving offshore. Despite facing an SEC lawsuit over alleged securities law violations today, Coinbase stands clear of accusations related to money transmission or Bank Secrecy Act violations. The recent events have highlighted the contrasting approaches of major players in the crypto space towards regulation and compliance. Armstrong's remarks over these past two days reflect a strategic stance that prioritizes long-term stability and legitimacy over rapid expansion, signaling Coinbase's dedication to aligning with US regulatory frameworks. https://www.investing.com/news/cryptocurrency-news/coinbase-ceo-stresses-compliance-amid-binances-doj-fine-93CH-3241574

2023-11-22 17:09

Copyrighted Image by: Reuters. The U.S. dollar gained strength against the euro today, with the EUR/USD pair declining to approximately 1.0865. This movement came in response to a combination of economic data releases and Federal Reserve signals. Today's data showed U.S. jobless claims unexpectedly fell for the week ending November 18th, with only 209,000 initial claims reported, defying analysts' expectations of 225,000. The robust jobless claims data suggests that the U.S. labor market remains resilient despite broader economic uncertainties. In contrast, October's Durable Goods Orders experienced a significant decline, dropping by 5.4% which exceeded forecasts and reversed the previous month's gain of 4.6%. Despite this decrease indicating potential softness in investment, the dollar's advance was evident in the DXY index, which rose to around 104.10. Adding to the dollar's momentum were the minutes from the Federal Reserve's Federal Open Market Committee (FOMC), which highlighted ongoing concerns about persistent inflation. The minutes suggested that the Fed might continue to pursue aggressive monetary policies to combat inflationary pressures. https://www.investing.com/news/forex-news/dollar-strengthens-as-jobless-claims-fall-durable-goods-orders-drop-93CH-3241561