2023-11-22 10:37

The USD/CAD currency pair maintained its strength during today's European session, holding firmly above the significant pivot point of 1.3700. This robustness is attributed to a combination of factors including the strength in the European session and subdued crude oil prices impacting the Canadian dollar (CAD). Additionally, softer Canadian Consumer Price Index (CPI) data has led to reduced expectations for rate hikes by the Bank of Canada (BoC), while a modest uplift in the US dollar followed the release of minutes from the Federal Open Market Committee (FOMC), which seemed to inspire a recovery. Yesterday, the release of disappointing Canadian inflation figures weakened CAD's outlook and diminished expectations for additional BoC rate hikes. The softer CPI data is a key element influencing market sentiment, as it suggests less aggressive monetary policy in the near term. From a technical analysis standpoint, USD/CAD is showing signs of support at an ascending trend line that aligns with negative daily chart oscillators around the crucial pivot of the 50-day Simple Moving Average (SMA) at approximately 1.3670-1.3665. A decisive move below this level could indicate bearish intent heading towards a key Fibonacci zone at about 1.3580-1.3575. Conversely, resistance near a weekly high around 1.3750 poses a challenge to upward movements, with yearly peaks near 1.3900 serving as a notable barrier. https://www.investing.com/news/forex-news/usdcad-remains-strong-above-pivotal-13700-mark-93CH-3240988

2023-11-22 10:32

Copyrighted Image by: Reuters In a sweeping resolution with the U.S. Department of Justice (DOJ), cryptocurrency exchange Binance has agreed to delist trading pairs and prepare for a full withdrawal from the United States market. This decision, which came to light on Tuesday, involves a substantial penalty of $4.3 billion. Adding to the company's woes, Changpeng Zhao (CZ), the CEO of Binance, has stepped down from his management role as part of his guilty plea on charges of operating without a license and conspiracy. CZ is facing an individual fine of $50 million and could serve up to 18 months in prison, with sentencing scheduled for February 23, although there is a possibility of postponement. Despite relinquishing his management duties, CZ retains his ownership stake in the company. As he departs from his role at Binance, CZ expressed his desire to move past this challenging period. To ensure future compliance, a five-year watchdog will oversee the company's operations, and the Treasury will have full access to Binance's data. The legal settlement marks a significant shift in the regulatory landscape for cryptocurrency exchanges operating within the U.S. and may have far-reaching implications for the industry. https://www.investing.com/news/cryptocurrency-news/binance-agrees-to-43-billion-penalty-and-us-exit-cz-steps-down-93CH-3240981

2023-11-22 10:28

Copyrighted Image by: Reuters. The cryptocurrency market is witnessing volatility as XRP, the fifth-largest digital currency by market capitalization, experienced a downturn to $0.591 today. The drop followed speculative discussions on the X platform, sparked by a user post suggesting a potential Q1 2024 listing of XRP by Robinhood (NASDAQ:HOOD). However, despite tracking its performance, Robinhood has not confirmed any plans to support XRP trading, maintaining caution due to ongoing regulatory scrutiny. This latest dip in XRP's value comes in the wake of a broader crypto market downturn on Tuesday, with Bitcoin's sharp decline affecting the valuation of various digital assets. Earlier this year in June, Robinhood had removed several cryptocurrencies from its platform, including SOL, MATIC, and ADA, following risk assessments by the U.S. Securities and Exchange Commission (SEC). The trading platform's current hesitation appears to be influenced by the regulatory landscape and past SEC actions. Adding to the caution is the unresolved legal battle between the SEC and Ripple Labs, the company behind XRP. Although a July 13 ruling stated that XRP is not a security, the litigation remains ongoing with remedies proceedings yet to be concluded. This leaves room for potential SEC appeals which could impact future listings and trading features for XRP on platforms like Robinhood. https://www.investing.com/news/cryptocurrency-news/robinhood-refrains-from-listing-xrp-amid-regulatory-uncertainty-93CH-3240975

2023-11-22 09:11

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar edged higher in early European trade Wednesday, but remained near recent lows after the release of the minutes of the Federal Reserve’s last meeting. At 04:10 ET (09:10 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, rose 0.2% to 103.689, just above the 2-1/2-month low of 103.17 seen on Tuesday. The index is down about 3% so far in November and on course for its worst monthly performance in a year. Fed minutes fail to significantly change sentiment Tuesday’s Fed minutes showed the central bank would proceed "carefully" and that "all participants judged it appropriate to maintain" the current rate setting, casting doubt over when the central bank will begin trimming interest rates. That said, the Fed officials also indicated they would only raise interest rates if progress in controlling inflation faltered, suggesting more tightening is unlikely anytime soon. “Federal Reserve minutes once again reiterated the cautious approach to interest rates, which did not excite the markets much,” said analysts at ING, in a note. Thursday’s Thanksgiving holiday means that the weekly jobless claims data are brought forward a day, and joins durable goods data for October and the latest readings of consumer confidence on the economic data slate later Wednesday. “We tend to think it is a little too early to expect the dollar bear trend to run a lot further just yet. That will require some substantially weaker US data or the Fed formally taking an additional rate hike off the table,” ING added. Euro, sterling fall from recent highs In Europe, EUR/USD fell 0.2% to 1.0886, with the euro handing back some of its recent gains after rising to its highest against the dollar since mid-August. A sharp fall in eurozone inflation has given rise to speculation that rate cuts are just around the corner, but European Central Bank President Christine Lagarde was keen to express caution, in a speech on Tuesday. "This is not the time to start declaring victory," Lagarde said in a speech in Berlin. "We need to remain focused on bringing inflation back to our target, and not rush to premature conclusions based on short-term developments." GBP/USD fell 0.2% to 1.2511, not far from a two-month high of 1.2558 touched overnight. U.K. Chancellor Jeremy Hunt is set to release the annual Autumn Statement later in the session, and press reports have suggested he will announce tax cuts intended to bolster the country’s weak growth outlook after the U.K. economy flatlined in the third quarter. USD/SEK rose 0.3% to 10.4998 ahead of the latest policy-setting meeting by Sweden's central bank. The market remains undecided over whether the Riksbank will hike, but a steady decision would likely be taken as the end of the hiking cycle and put the Swedish crown under pressure. Asian currencies retreat In Asia, USD/CNY rose 0.2% to 7.1496, with the yuan handing back some of its recent gains on the back of a series of stronger-than-expected midpoint fixes from the People’s Bank of China, as well as reports that Beijing was planning to roll out more stimulus measures. USD/JPY traded 0.6% higher at 149.25, with the yen retreating after hitting its strongest level in three months versus the dollar, with the outlook still clouded by uncertainty over a dovish Bank of Japan, which has so far signaled few changes to its ultra-loose stance. https://www.investing.com/news/forex-news/dollar-bounces-off-lows-after-fed-minutes-sterling-looks-to--autumn-statement-3240849

2023-11-22 09:10

Copyrighted Image by: Reuters. The GBP/CAD exchange rate surged to an eleven-week peak, reaching CA$1.7220 on Tuesday, following hawkish comments from Bank of England (BoE) officials and expectations of tax cuts. BoE Governor Andrew Bailey, during his testimony to the Treasury Select Committee, cautioned about the persistent risks of high-level inflation, while Monetary Policy Committee (MPC) member Catherine L. Mann projected ongoing wage and price pressures into 2024. On the same day, Canada reported a marginal increase in consumer prices by 0.1% for October. However, headline inflation unexpectedly dropped to 3.1%, with core inflation decreasing slightly to 2.7%. Despite a significant annual decrease in gasoline prices by 7.8%, the core rate excluding gasoline stood at 3.6%. In response to these figures, Scotiabank analysts anticipate a subdued reaction from the Canadian dollar but expect limited depreciation due to the high core prices supporting a relatively hawkish stance from the Bank of Canada. Adding to economic measures, the Canadian government presented a fiscal update that included C$15 billion allocated for new rental housing construction loans over the next decade and a C$1-billion fund aimed at increasing affordable housing availability. Analysts are closely monitoring the potential impact of these developments on currency movements. Simon Harvey from Monex Europe noted that the BoE maintains flexibility for future rate hikes to manage inflation effectively. Meanwhile, James Moberly from Goldman Sachs highlighted that conservative fiscal measures are expected at the Autumn Statement but did not rule out larger tax cuts in the upcoming Spring Budget. As Sterling's trajectory remains subject to potential shifts following Chancellor Hunt’s Autumn Statement and Bank of Canada Governor Tiff Macklem’s address—which may signal an end to interest rate increases—market participants are bracing for further volatility in the GBP/CAD exchange rate. https://www.investing.com/news/forex-news/sterling-climbs-to-elevenweek-high-against-canadian-dollar-on-boe-remarks-93CH-3240844

2023-11-22 09:02

Copyrighted Image by: Reuters The USD has shown particular weakness against the Japanese yen during this week's trading sessions, while anticipation builds for key economic reports ahead of the Thanksgiving holiday. The US Dollar Index saw minor gains following a slump on Monday, with the Federal Reserve's October meeting minutes revealing that additional tightening could be on the horizon if inflation remains stubbornly high. Investors are now looking forward to today's release of Durable Goods Orders and Initial Jobless Claims data from the US, as well as the European Consumer Confidence Index for November. These reports are expected to provide further insight into the global economic outlook as central banks grapple with inflationary pressures. In currency markets, the EUR/USD pair managed to stay above the 1.0900 level despite a downturn on Tuesday. European Central Bank President Christine Lagarde has reiterated concerns over persistent inflation, which continues to challenge policymakers. The British pound has seen a notable rise, reaching highs not seen since early September, pushing past the 1.2550 mark before finding stability. This surge comes as British Finance Minister Jeremy Hunt prepares to deliver the Autumn Budget statement against a backdrop of efforts to stabilize the currency. In Asia, Japan's economic sentiment has deteriorated due to reduced demand affecting capital and consumer spending. The USD/JPY pair, however, has made a comeback, approaching the 149.00 range after experiencing a significant dip earlier in the week. Meanwhile, gold prices have once again breached the $2,000 threshold. The XAU/USD pair has reached this milestone for the second time since early November, reflecting investors' appetite for safe-haven assets amid ongoing economic uncertainty. China's growth projections for next year have been set at 4.5% to 5%, with a cautious monetary policy expected in light of concerns about interest rate gaps with Western countries. These insights suggest that global financial markets remain attuned to the delicate balance between fostering growth and containing inflation. https://www.investing.com/news/forex-news/dollar-weakens-against-yen-gold-surpasses-2000-as-markets-eye-economic-reports-93CH-3240839