2023-11-21 14:04

Copyrighted Image by: Reuters. The dollar continued its downtrend on Tuesday as traders awaited the Federal Reserve's October meeting minutes and US Existing Home Sales data. The anticipation follows Monday's market sentiment that saw a weakened USD across major currencies, with the USD Index falling below August lows to under 104.00, influenced by a drop in US Treasury yields below 4.4%. The Canadian dollar is also in focus, with projections suggesting a decrease in the Canadian October CPI to an annual rate of 3.2%, down from September's rate of 3.8%. This potential decline comes ahead of the release of Canadian inflation statistics, where the USD/CAD pair traded just above the 1.3700 mark. Meanwhile, the Australian dollar saw strong gains against the US dollar, nearing early August highs around 0.6600. This came after the Reserve Bank of Australia's discussions on interest rate hikes to counter inflation threats. In Europe, comments from a European Central Bank Governing Council member hinted at stable future interest rates, which pushed the EUR/USD pair modestly above 1.0950. Concurrently, the GBP/USD pair climbed past a two-month high of over 1.2540, and the USD/JPY approached mid-September lows around 147.50. Investors are closely monitoring these currency movements as they reflect broader economic trends and central bank policies affecting global markets. https://www.investing.com/news/forex-news/wall-street-optimism-leads-to-a-weaker-dollar-and-higher-major-currencies-93CH-3240209

2023-11-21 13:54

Copyrighted Image by: Reuters. LONDON - The Pound Sterling gained strength following comments from the Bank of England (BoE) Governor Andrew Bailey, who addressed the Treasury Select Committee (TSC) on the Monetary Policy Report (MPR) today. In his remarks, Bailey pointed out a slight decrease in inflation that was not anticipated, suggesting that the year might end with inflation rates slightly below projections. This development comes amid signs of a softening labor market and wage growth that remains above the inflation target but appears to be decelerating. Despite these observations, Governor Bailey advised against altering interest rates at this time. He underscored the necessity of vigilance due to potential upside risks. These include persistent inefficiencies within the labor market and geopolitical tensions in the Middle East that could disrupt oil prices. The markets reacted positively to Bailey's speech, with the GBP/USD exchange rate rising to 1.2540, marking a 0.30% increase. This uptick occurred even as Bailey expressed reservations about the market's tendency to focus heavily on recent data releases, which might lead to underestimating enduring inflationary pressures. He reiterated the central bank's commitment to achieving its 2% inflation target. Investors and analysts will be closely monitoring these developments as they assess the potential impact on future monetary policy decisions by the BoE and their implications for currency valuations and economic stability in the United Kingdom. https://www.investing.com/news/forex-news/pound-sterling-rises-as-boe-governor-signals-inflation-dip-93CH-3240193

2023-11-21 13:48

Copyrighted Image by: Reuters. The Euro dipped against the Japanese Yen in early European trading today as investors sought the safety of the Yen due to a lack of significant market drivers. The EUR/JPY pair was trading around 161.83, marking a 0.29% decline from its previous position. Market participants are closely monitoring the upcoming speech by European Central Bank President Christine Lagarde for indications that could sway market sentiment. The currency pair's movement has been further influenced by comments from ECB member François Villeroy de Galhau, who emphasized the need to maintain current interest rates, pushing back against any expectations of rate cuts. Despite a bearish Relative Strength Index (RSI) signal, other technical indicators hint at potential bullish momentum if the pair remains above certain key levels. Traders are watching the 100-hour Exponential Moving Averages (EMAs) closely, which is considered an important support level at 161.60. On the flip side, immediate resistance is identified at the 50-hour EMA, which stands at 161.46. Investors and traders are now awaiting more concrete signals from ECB officials that could provide clearer direction on the future path of monetary policy and its impact on currency valuations. https://www.investing.com/news/forex-news/euro-declines-against-yen-amid-safehaven-demand-ecb-rate-outlook-93CH-3240192

2023-11-21 13:45

Copyrighted Image by: Reuters. Ethereum has recently launched Blast, a Layer 2 network featuring an EVM-compatible layer-2 optimistic rollup technology. The platform, currently in an invite-only phase, has drawn over $20 million in investments from ether and stablecoins, with a mainnet release scheduled for February 2024. The project has generated significant interest in the cryptocurrency community for its potential to provide yields from Ethereum staking and real-world assets protocols. Investors can earn up to 4% yield on ETH and 5% on USDC, with substantial backing from Paradigm and Standard Crypto. Lido has already secured over $19 million in staked ether, offering a promising annual yield of up to 4%. Additionally, $150,000 in DAI stablecoins is prepared for deployment, and USDB, an auto-rebasing stablecoin linked to MakerDAO's T-Bill protocol earnings, has been introduced. Blast's strategy includes rewarding users with Blast Points for referrals prior to the mainnet launch. These points will be redeemable starting in May after the network goes live. The announcement of the mainnet launch and the referral program led to a surge in BLUR’s market value to $0.35888 today. Despite the initial success and investment interest, some industry experts have voiced concerns over Blast's long-term viability. Critics like T3chman and Tytan have likened the structure of Blast to Ponzi schemes due to its reliance on rewards tokens post-launch. Adam Cochran of Cinneamhain Ventures pointed out a lack of clear exit strategy even though funds are being allocated into Lido and Maker protocols for yield accruals. Sisyphus noted limitations of the bridge due to multi-sig control without live L2 operations. In spite of these criticisms, Roquerre of Blur fame has secured a substantial $40 million in funding aimed at fostering NFT-centric DApp growth on Blast. Standard Crypto VC acknowledged limitations related to Total Value Locked (TVL) but emphasized Blast’s potential revenue models such as yield percentages or gas fee reimbursements for generating DApps. This strategic expansion contributed to a 12% increase in BLUR’s market price. The development of Blast is part of a broader trend within the crypto ecosystem towards Layer 2 solutions that aim to improve scalability and reduce costs while maintaining security. With its upcoming mainnet launch and the backing of significant investors, Blast is positioned as a noteworthy addition to the Ethereum network's infrastructure. https://www.investing.com/news/cryptocurrency-news/ethereums-new-layer-2-network-blast-attracts-20-million-investment-93CH-3240180

2023-11-21 12:32

Copyrighted Image by: Reuters. The USD Index (DXY) is experiencing downward pressure, nearing the key 103.00 support level as market sentiment shifts in favor of possible interest rate cuts by the Federal Reserve by spring 2024. This bearish trend is highlighted by the index's dip below the crucial 200-day Simple Moving Average (SMA), which is currently at 103.61, aligning with a decrease in US Treasury yields. Investors are keenly awaiting further economic insights from the release of November's Federal Open Market Committee (FOMC) Minutes, as well as data on Existing Home Sales and the Chicago Fed National Activity Index. While anticipations of a softer monetary policy stance in light of disinflationary trends and a cooling employment sector are imposing challenges, the dollar is finding some support from the persistent strength of the US economy and firm statements from certain Federal Reserve officials. With a packed economic calendar this week, additional indicators including MBA Mortgage Applications, Durable Goods Orders, Initial Jobless Claims, Final Michigan Consumer Sentiment, and S&P Global Flash Manufacturing/Services PMIs will be closely monitored. Amidst these developments, there is ongoing speculation about whether the DXY will challenge the significant psychological threshold at 100.00. https://www.investing.com/news/forex-news/usd-index-struggles-as-fed-rate-cut-expectations-mount-93CH-3240070

2023-11-21 12:23

Gold prices on the Multi Commodity Exchange (MCX) in India saw an uptick today, with a significant increase to ₹61,088 per ten grams, marking a rise of ₹304 from Monday's closing price. The upward trend in gold was mirrored in futures contracts as well, with Gold futures climbing slightly to ₹60,956, up from Monday’s close of ₹60,657. In contrast, Silver futures experienced a marginal decrease, settling at ₹72,788 per kilogram compared to the previous rate. The movements in precious metals come against a backdrop of global economic sentiments influenced by a weakening US Dollar and speculation of a more dovish Federal Reserve policy stance. The Comex Gold market has been propelled forward by these expectations. According to forecasts from the CME’s Fedwatch tool, there is approximately a one in three chance that the Federal Reserve will start cutting interest rates as early as March next year, with substantial easing anticipated by the end of 2023. Further influencing market dynamics are the lower-than-expected US bond yields, which are currently below the Fed fund rates. This discrepancy has fueled discussions about potential monetary relaxation in the near future. Adding to the global economic narrative are China's commitments to enhanced fiscal measures aimed at economic revival. These measures are spearheaded by initiatives from Finance Minister Lan Fo’an. However, cautionary tones have also been sounded by Richmond Fed President Thomas Barkin, who has warned against underestimating the persistence of inflation which may necessitate sustained high-interest rates. https://www.investing.com/news/commodities-news/gold-prices-in-india-rise-amid-speculation-of-us-federal-reserve-policy-easing-93CH-3240043