2023-11-22 08:54
The Chinese Yuan is gaining strength, partly due to a softer US Dollar and improving diplomatic ties between the United States and China. Analysts from Commerzbank (ETR:CBKG) have indicated that while a retreating Dollar could bolster the Yuan's value, the currency pair is unlikely to fall below the 7-to-USD threshold soon. China is taking assertive steps to bolster its housing market and assist property developers with their financing needs. This move also aims to tackle local government debt challenges and enhance infrastructure investment. These measures are designed to ensure a stable growth trajectory for the economy by focusing on stabilization rather than rapid expansion. However, diverging monetary policies between the Federal Reserve (Fed) and the People's Bank of China (PBoC) are expected to sustain the existing interest rate differences between the two nations. This situation continues to play a significant role in the dynamics of the Yuan compared to the Dollar. https://www.investing.com/news/forex-news/yuan-strengthens-amid-uschina-relations-thaw-weaker-dollar-93CH-3240833
2023-11-22 08:39
Copyrighted Image by: Reuters Crypto analyst Rekt Capital has issued a warning about a potential steep decline in Bitcoin's value in the lead-up to the cryptocurrency's next halving event in April 2024. Drawing on historical patterns observed during the 2016 halving period, the analyst suggested that Bitcoin could experience a post-pre-halving rally drop similar to what happened in 2016. The analyst, who commands the attention of over 370K followers, pointed out that if Bitcoin follows the trajectory of the past halving cycle, its value could plummet by as much as 40%. This would mean that Bitcoin, which is currently trading at $37,341, could see its price fall to around $22,500. The prediction is based on the behavior of Bitcoin's price during previous halving events, which occur approximately every four years and reduce the rewards miners receive for adding new blocks to the blockchain by half. The upcoming halving is expected to decrease miner rewards again, potentially impacting the supply and demand dynamics of Bitcoin. Investors and traders are keeping a close eye on these forecasts as they have historically been associated with significant price volatility. Rekt Capital has encouraged followers to subscribe for email alerts to stay informed about future predictions and updates on cryptocurrency market movements. https://www.investing.com/news/cryptocurrency-news/bitcoin-may-face-a-40-drop-as-halving-approaches-analyst-warns-93CH-3240798
2023-11-22 08:32
Copyrighted Image by: Reuters. The cryptocurrency market is abuzz with anticipation as the U.S. Securities and Exchange Commission (SEC) considers the approval of several Bitcoin exchange-traded funds (ETFs), which could potentially boost Bitcoin prices and foster greater market adoption. Amidst a backdrop of heightened regulatory focus on the crypto industry, investors and executives alike are calling for more robust regulations to maintain sector integrity. On Wednesday, the crypto community's attention has been riveted on the SEC, as three Bitcoin ETFs, including the ProShares Short Bitcoin ETF, remain under review after previous rejections by the commission earlier this month. The market has seen elevated on-chain activity, with Bitcoin's on-chain transaction volume (OTV) climbing from $3.7 billion to $4.1 billion on Tuesday, driven by expectations that new ETF approvals could expand investment opportunities and enhance demand for Bitcoin derivatives. The potential endorsement of spot ETFs, designed to mirror market indices through direct investments in securities, is seen as a pivotal step towards integrating Bitcoin into the global financial system. Approval of these financial products is expected not only to validate cryptocurrencies but also to provide a regulated and structured framework that could attract traditional investors. This wave of optimism comes at a time when the crypto industry is under close watch by regulators worldwide. The sector has faced increased scrutiny following high-profile incidents such as the FTX scandal and subsequent legal actions against prominent figures like Sam Bankman-Fried. These events have underscored the vulnerabilities within the digital asset space and have led to calls for tighter controls. Echoing this sentiment, Nigel Green, CEO of deVere Group, has advocated for stringent regulations that align with established financial practices while preserving the innovative essence of cryptocurrencies. His stance reflects a broader industry push for a regulated environment that can foster trust among participants and support sustainable growth in the crypto market. https://www.investing.com/news/cryptocurrency-news/crypto-market-awaits-sec-decision-on-bitcoin-etfs-amid-regulatory-scrutiny-93CH-3240789
2023-11-22 08:26
Copyrighted Image by: Reuters. The New Zealand dollar fell back from its recent peak against the US dollar during the European session today, as a rise in US Treasury yields and a strengthening dollar index applied downward pressure on the currency pair. Today, the NZD/USD pair moved down from its three-month high of 0.6086 to around 0.6030. This decline coincided with an uptick in US Treasury yields, with the 10-year yield reaching 4.41% and the 2-year yield hitting 4.88%. Moreover, the US Dollar Index (DXY), which measures the dollar's strength against a basket of currencies, edged closer to 103.70, lending support to the greenback's value. The downward shift for the New Zealand dollar follows Tuesday's release of hawkish minutes from the Federal Open Market Committee (FOMC). The minutes highlighted a readiness to continue monetary tightening should inflation remain above target levels. This stance has reinforced expectations for persisting strength in the US dollar as higher interest rates typically attract investors looking for better returns. In contrast to these developments, New Zealand's economic data provided some positive news with a narrower trade balance deficit reported for October. The deficit shrank to $-14.81 billion from September’s $-15.41 billion, aided by an increase in exports to $5.40 billion and a decrease in imports to $7.11 billion. The improved trade figures reflect a boost in economic activity, which is partly due to China's upbeat economic outlook. As a key trading partner, China's economic health has positive implications for New Zealand's currency. Looking ahead, markets are anticipating further economic indicators that could influence currency movements. Later today, the United States is set to publish jobless claims and Michigan Consumer Sentiment figures, which offer insights into the labor market and consumer attitudes, respectively. Additionally, traders will be eyeing New Zealand’s Q3 Retail Sales data, expected this Friday, with forecasts suggesting an improvement that could lend some support to the NZD. Investors and analysts will be closely monitoring these upcoming releases for signs of economic resilience or weakness that could sway central bank policies and consequently affect currency valuations. https://www.investing.com/news/forex-news/nzdusd-retreats-from-threemonth-high-amid-us-dollar-strength-93CH-3240781
2023-11-22 08:26
Copyrighted Image by: Investing.com Grayscale Investments has been actively engaging with the U.S. Securities and Exchange Commission (SEC) to discuss the potential transition of its Bitcoin Trust into a spot exchange-traded fund (ETF), according to recent updates. The dialogue, which took place on Sunday, centered on leveraging NYSE Arca Rule 8.201-E for listing Grayscale Bitcoin Trust (GBTC) shares. ETF specialist James Seyffart, on Tuesday, shed light on the conversations between Grayscale and the SEC. He also mentioned that other entities like Hashdex and Franklin Templeton are involved in discussions aimed at creating spot ETFs. Following a directive from the District of Columbia Circuit Court for the SEC to reconsider their petition, Grayscale reviewed NYSE Arca’s proposed rule change in an official memorandum exchange today. Seyffart expressed optimism regarding the approval of spot Bitcoin ETFs, anticipating a favorable outcome as early as January. He is keeping interested parties informed through Telegram about ongoing developments in this matter. The push for converting Grayscale's Bitcoin Trust into an ETF comes amid growing interest in cryptocurrency investment vehicles that offer traditional market investors exposure to digital assets without direct ownership. Approval of such a product would mark a significant milestone for the crypto industry, potentially paving the way for broader acceptance and integration into mainstream investment portfolios. https://www.investing.com/news/cryptocurrency-news/grayscale-engages-sec-in-talks-to-convert-bitcoin-trust-into-etf-93CH-3240780
2023-11-22 08:16
Copyrighted Image by: Reuters The Canadian dollar remains steady at the crucial 1.3700 level despite recent data showing softer inflation in Canada, which suggests that the Bank of Canada (BoC) may adopt a more dovish approach. Investors are closely monitoring BoC Governor Tiff Macklem's scheduled speech today, which could provide further insights into the central bank's future rate decisions. Analysts anticipate a potential total rate cut of approximately 80 basis points by December 2024, with easing policies expected to start between April and June. The Federal Reserve's latest minutes did not reveal any major new developments but highlighted a slowing economy in the United States. Upcoming reports on durable goods orders and consumer sentiment are expected to place additional pressure on the US dollar (USD). These economic indicators will be closely watched as they could influence the Federal Reserve's monetary policy direction. Market participants are also looking ahead to this weekend's OPEC+ meeting, where decisions on whether to extend production cuts will be critical for the Canadian dollar's trajectory. As Canada is a major oil exporter, the outcome of the OPEC+ meeting could significantly impact the currency. Technical analysis indicates that the USD/CAD pair is testing key channel support levels. If these levels do not hold, it could lead to increased strength in the Canadian dollar. Resistance levels are established at 1.3899 and 1.3800, while support can be found at the psychological mark of 1.3700 and near the significant 50-day moving average, which is currently at 1.3668. The Relative Strength Index (RSI) suggests market indecision as traders await important economic announcements that could shape currency movements. https://www.investing.com/news/forex-news/canadian-dollar-holds-firm-amid-expectations-of-boc-policy-shift-93CH-3240782
