2023-11-22 06:56

Copyrighted Image by: Reuters. The Mexican peso showed resilience in the Asian session today, trading near 17.2000 against the US dollar, which found itself under pressure despite an index position of 103.60. The greenback's challenges come in the wake of Tuesday's Federal Open Market Committee (FOMC) meeting minutes, which suggested further interest rate hikes could be on the horizon if inflation targets are not met. Investors are closely monitoring a slate of economic data releases and central bank communications for clues on future monetary policy. In Mexico, retail sales figures set to be released today are expected to show growth, while Thursday's inflation data is anticipated to reveal a slight increase in the overall Consumer Price Index (CPI) but a decrease in the core CPI. These reports follow the Bank of Mexico's (Banxico) recent decision to hold interest rates steady, a move that will be further explained in the upcoming release of detailed minutes, including any language adjustments that may hint at the duration of current monetary policies. In the United States, market participants await the release of weekly jobless claims and consumer sentiment surveys due today, which could provide additional guidance on the health of the economy. The US Treasury yields have seen an increase, with the 10-year note hitting 4.41% and the 2-year note reaching 4.88%, reflecting market expectations for future interest rate movements. Mexico's economic growth is also under scrutiny as estimates suggest a 2.9% expansion year-over-year in October. This performance is likely to influence future policy decisions by Banxico and could impact currency and market dynamics in the region. https://www.investing.com/news/forex-news/mexican-peso-strengthens-against-dollar-after-fomc-minutes-93CH-3240707

2023-11-22 06:37

The GBP/JPY currency pair is experiencing tight trading just shy of the 186.00 mark today, after recovering from a recent low of 184.45. This movement comes as traders anticipate potential shifts in the Bank of Japan's (BoJ) policies, given that inflation has persistently exceeded targets. The pound's resilience is also attributed to comments made by Bank of England (BoE) Governor Andrew Bailey on Tuesday during a Treasury Select Committee session, which suggested that additional rate hikes are still under consideration. Bailey's hawkish stance has lent support to the British pound, maintaining its strength despite a lack of significant financial updates from the UK. Traders of the GBP/JPY pair are weighing mixed signals from central banks, leading to cautious trading activity. The BoE's readiness to continue adjusting interest rates to tackle inflation contrasts with the market's anticipation regarding the BoJ's policy direction amid sustained inflationary pressures. This cautious atmosphere among traders reflects a broader trend of heightened sensitivity to central bank communications in forex markets, where statements from officials can significantly sway currency valuations. As such, investors and analysts alike are closely monitoring developments from both the BoE and BoJ for further indications of how monetary policies might evolve in response to ongoing economic challenges. https://www.investing.com/news/forex-news/pound-holds-gains-against-yen-on-boe-hawkish-stance-and-boj-policy-watch-93CH-3240703

2023-11-22 06:18

Copyrighted Image by: Reuters. Grayscale Investments is advancing in its effort to convert its Bitcoin Trust (GBTC) into a spot exchange-traded fund (ETF), following a series of strategic moves and discussions with the U.S. Securities and Exchange Commission (SEC). The cryptocurrency asset manager engaged in talks with SEC staff on Sunday, focusing on the application of NYSE Arca Rule 8.201-E, a key step in the process. On Monday, Grayscale announced a significant partnership with BNY Mellon (NYSE:BK) for operations related to GBTC, signaling further progress. This followed their October 19 S-3 Form Registration, which indicated plans to list GBTC on NYSE Arca, a potential precursor to the trust's transition to an ETF. Amidst the competitive landscape with major asset managers like BlackRock (NYSE:BLK) and Fidelity also in the race for ETF approval, industry analysts have expressed optimism on social media about Grayscale's chances of SEC approval by January. The SEC acknowledged these developments in a memo released today, pointing out the discussions with Grayscale concerning GBTC's listing under NYSE Arca Rule 8.201-E. This comes after Grayscale achieved a legal victory that required the SEC to reconsider their initial rejection of the spot ETF proposal. Grayscale has also challenged the SEC over what they perceive as unequal regulatory treatment compared to previously approved futures-based ETFs, which included surveillance agreements. These latest developments represent a significant step forward for Grayscale and its efforts to offer investors a spot Bitcoin ETF, an investment product that could potentially provide more direct exposure to Bitcoin compared to futures-based alternatives. The partnership with BNY Mellon as transfer agent enhances the operational readiness of GBTC for potential uplisting and ETF conversion, marking another milestone in the evolving landscape of cryptocurrency investment vehicles. https://www.investing.com/news/cryptocurrency-news/grayscale-moves-closer-to-bitcoin-etf-with-sec-discussions-and-bny-mellon-partnership-93CH-3240697

2023-11-22 05:57

Copyrighted Image by: Reuters. Gold prices dipped below the $2,000 mark today as minutes from the Federal Reserve's latest meeting signaled a readiness to continue aggressive measures against inflation if necessary. This hawkish stance has prompted investors to exercise caution, despite some support for gold stemming from a weakened dollar after its recent rebound. The Federal Open Market Committee (FOMC) minutes released on Tuesday hinted at a potential plateau in interest rate hikes, with market speculation about possible rate cuts commencing as early as May next year. This speculation has kept the USD's movements in check, even though it has recovered from its lows at the end of August against major currencies. Despite failing to maintain its position above $2,000, gold is receiving mixed technical signals. Positive oscillators suggest there could be room for cautious optimism if gold can breach immediate resistance levels. Support is currently found between $1,991 and $1,990, with a risk of further declines toward weekly lows near $1,965 and critical zones around $1,938-1,939 as indicated by Simple Moving Average (SMA) benchmarks. In other market movements, October's US Existing Home Sales dropped to a new low at a seasonally adjusted annual rate of just under four million units, indicating a cooling housing market. Meanwhile, geopolitical tensions in the Middle East have remained subdued following an agreement between Israel and Hamas on hostage/prisoner exchanges and short-term ceasefires. Additionally, US precision strikes on Iran-backed facilities in Iraq had a minimal impact on market sentiment or gold’s status as a safe-haven asset. Investors are now looking ahead to upcoming US economic data releases for further guidance on market direction. These include Initial Weekly Jobless Claims and Durable Goods Orders. The revised Michigan Consumer Sentiment Index will also be closely watched to gauge consumer confidence amid prevailing economic challenges. https://www.investing.com/news/commodities-news/gold-prices-fall-below-2000-amid-hawkish-fed-signals-93CH-3240686

2023-11-22 05:38

The cryptocurrency market experienced notable fluctuations yesterday as investors reacted to anticipated enforcement actions from the US Department of Justice. Bitcoin briefly dropped to $36,200, while Ethereum fell to $1,950 before both cryptocurrencies made a swift recovery. Amidst these market movements, a prominent crypto investor, often referred to as a "whale," demonstrated strategic trading acumen. The whale seized the opportunity presented by the market's volatility, purchasing a significant amount of Ethereum. Lookonchain, a blockchain analytics platform, reported that the investor bought 2,824 ETH for $5.53 million from the cryptocurrency exchange Binance. Additionally, the whale acquired 6 million BLUR tokens, worth $2.28 million, from FalconX, a digital asset trading platform. These BLUR tokens were earmarked for staking, a process where holders can earn rewards by supporting the network. This activity by the whale was identified as swing trading, a strategy that involves taking advantage of price movements within a short time frame. The whale's actions coincided with the broader market's response to potential regulatory scrutiny. After their initial dip, both Bitcoin and Ethereum recovered some ground. Ethereum managed to climb back up to trade at $1,982 following its earlier decline. The resilience of these leading cryptocurrencies indicates a robustness in the market despite regulatory uncertainties. https://www.investing.com/news/cryptocurrency-news/bitcoin-and-ethereum-recover-after-brief-dip-on-regulatory-concerns-93CH-3240680

2023-11-22 05:22

Copyrighted Image by: Reuters. Investing.com-- Gold prices steadied in Asian trade on Wednesday after briefly touching key highs as the prospect of no more rate hikes by the Federal Reserve spurred continued flows into the yellow metal. But a rally in gold prices now appeared to have cooled, as the minutes of the Fed’s late-October meeting, released on Tuesday, showed the bank sticking to its higher-for-longer outlook on interest rates. While markets remained convinced that the Fed will raise rates no further, the Fed minutes spurred some doubts over when the central bank will begin trimming rates. CME Group’s Fedwatch tool showed traders reconsidering expectations of a March 2024 rate cut. Spot gold was flat at $1,999.39 an ounce, while gold futures expiring in December steadied at $2,000.65 an ounce by 00:21 ET (05:21 GMT). Futures had risen as high as $2,009.80 an ounce on Tuesday, before cutting some gains after the Fed minutes. Fed rate cut outlook uncertain as minutes reiterate higher-for-longer outlook Gold saw a series of strong gains in recent sessions, as weak U.S. labor and inflation data spurred increased bets that the Fed was done raising interest rates. But the outlook for the yellow metal remained uncertain, especially given that the Fed likely plans to keep rates higher for longer. The central bank has signaled that rates will remain above 5% until at least end-2024. The prospect of higher-for-longer rates bodes poorly for gold, given that rising rates push up the opportunity cost of investing in the yellow metal. This notion had battered gold over the past year, as the Fed embarked on one of its most aggressive rate hike cycles. Higher rates are also expected to keep gold gains limited in the coming months, or at least until the Fed signals a clear plan to begin loosening policy. The dollar paused a recent losing streak on Wednesday, and recovered slightly from near three-month lows, which also pressured gold prices. Still, the yellow metal was trading up nearly 10% so far in 2023, aided by some safe haven demand as global economic conditions worsened. Copper dips from two-month high, more China, supply cues awaited Among industrial metals, copper prices fell from two-month highs on Wednesday as traders awaited more economic cues from top importer China. Copper futures fell 0.4% to $3.7897 a pound. While media reports said that Beijing was planning to roll out more stimulus measures, particularly for the property sector, traders were now awaiting actual moves from the Chinese government. Traders were also watching for any more disruptions in global copper supply, following major mine closures in Peru and Panama, which are expected to tighten markets in the coming months. https://www.investing.com/news/commodities-news/gold-prices-touch-2000-as-markets-weigh-fed-rate-outlook-3240669