2023-11-15 08:07

NEW YORK - In a notable move within the cryptocurrency sector, OKX, a prominent digital asset exchange, has leveraged Polygon's Chain Development Kit (CDK) to launch its own ZK-powered Layer 2 network named X1 (@X1_Network). Announced on Monday, X1 aims to integrate the extensive user base of over 50 million OKX customers with the broader Ethereum ecosystem. This strategic initiative is designed to enhance access to liquidity across various CDK chains and capitalize on Ethereum's robust security infrastructure. The introduction of X1 has had an immediate impact on the market, particularly benefiting MATIC, Polygon's native token. Today, MATIC observed a significant increase in its value, with a daily rise of 2.86% and a weekly surge of 27%. This growth reflects the positive sentiment surrounding the enhanced connectivity and scalability that X1 promises to bring to the Ethereum network. Despite this growth, crypto intelligence tracker Santiment has provided data suggesting that MATIC may have reached a local peak. The Network Realized Profit/Loss (NPL) indicator, which measures the daily network-level return on investment, identified spikes between November 3 and today. These spikes coincide with MATIC's price rally to $0.94 on Binance. Additionally, the 30-day Market Value to Realized Value (MVRV) metric for MATIC hints at profit-taking behavior among traders who previously purchased the token. Both indicators point toward a potential bearish trend in the near future. The developments around OKX's X1 network represent a significant step in bridging traditional cryptocurrency exchanges with decentralized finance (DeFi) platforms. By utilizing Polygon's advanced technology, OKX is positioning itself at the forefront of Layer 2 scaling solutions, which are essential for improving transaction speeds and reducing costs within the Ethereum network. The resulting expansion in accessibility is likely to further establish Ethereum as a pivotal ecosystem in the blockchain space. https://www.investing.com/news/cryptocurrency-news/matic-price-climbs-following-okxs-launch-of-x1-network-using-polygon-technology-93CH-3234578

2023-11-15 08:05

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar edged higher in early European trade Wednesday, attempting a rebound after the previous session’s sharp losses as cooling U.S. inflation raised expectations that the Federal Reserve has reached the end of its monetary tightening cycle. At 03:05 ET (08:05 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, rose 0.1% to 104.057, not far from Tuesday's two-month low of 103.98. Weak U.S. CPI hit dollar hard The dollar was hit hard on Tuesday after data showed that U.S. consumer prices were unchanged in October, while the annual figure climbed 3.2% - below expectations - after rising 3.7% in September. Sticky inflation has been a key point of contention for the Fed in maintaining its hawkish stance, especially after inflation rose more than expected in August and September. In fact, Fed officials were keen to maintain a hawkish stance ahead of this release, resulting in the downside surprise having a significant impact on the dollar as traders priced out any chance of another hike this year, turning their attention to when the Fed might start cutting rates. “We still think that the decisive blow to 'de-throne' the dollar will have to be given by a turn lower in activity data, which can make markets feel comfortable with pricing in more rate cuts,” said analysts at ING, in a note. “So, we will be looking with some interest at retail sales figures.” Data on U.S. retail sales for October are due out later in the session, and analysts expect a drop of 0.3% from the month before, when retail sales rose 0.7%. Sterling weakens as U.K inflation drops In Europe, GBP/USD fell 0.2% to 1.2475, dropping from levels last seen in September, after British inflation cooled by more than expected in October, offering some relief to the Bank of England. U.K. CPI plunged to 4.6% on an annual basis in October, a sharp drop from 6.7% in September - the smallest increase in two years. The Bank of England recently paused its rate-hiking cycle which had seen its key interest rate climb to 5.25%, the highest level since the 2008 financial crisis. However, officials have been keen to stress that it is nowhere near cutting interest rates, even as the economy approaches recessionary territory. EUR/USD fell 0.1% to 1.0867, after climbing to its highest level since August on Tuesday, ahead of the latest eurozone industrial production release, which is expected to show a sharp drop in September. Growth data released on Tuesday showed that the eurozone economy contracted marginally quarter-on-quarter in the third quarter, underlining expectations of a technical recession if the fourth quarter turns out equally weak. That said, ECB President Christine Lagarde last week said that rates will stay restrictive at least for several quarters as inflation remains elevated. Yen’s recovery stymied by weak growth data In Asia, USD/JPY rose 0.2% to 150.66, with the Japanese yen’s recovery from its one-year low hampered by weaker-than-expected gross domestic product data. Data on Wednesday showed that Japan’s GDP shrank much more than expected in the third quarter, as sticky inflation and a weak yen dented private spending. USD/CNY fell 0.2% to 7.2398, with the yuan boosted by government data showing that Chinese industrial production and retail sales grew more than expected in October, indicating that recent stimulus measures from Beijing were bolstering some facets of the economy. https://www.investing.com/news/forex-news/dollar-attempts-rebound-after-inflationinduced-losses-sterling-weakens-3234568

2023-11-15 07:12

Copyrighted Image by: Reuters. Precious metals, including gold, experienced a notable surge on Tuesday as the U.S. consumer price index (CPI) for October showed inflation pressures easing more than expected, raising market speculation about a less aggressive Federal Reserve stance on interest rates. The CPI remained unchanged from the previous month and saw a minor annual increase of 3.2%, according to the Bureau of Labor Statistics. This softer inflation data has led to a significant decrease in the value of the dollar and Treasury yields, diminishing the likelihood of another imminent rate hike by the Federal Reserve. As a result, gold futures on the COMEX division rose by $16.30 to close at $1,966.50 per ounce. Spot gold in New York also climbed by 1.1% to $1,967.54 an ounce, marking the highest intraday increase since October 27. The optimism extended to base metals as well, with copper prices on the London Metal Exchange (LME) increasing by 1.1% to $8,255 a metric ton. High interest rates typically dampen demand for base metals from critical sectors like construction and manufacturing while reducing their investment appeal. Swaps traders are now pricing in two Federal Reserve rate cuts by July next year, a shift from just one anticipated cut before the inflation report was released. However, Wall Street banks remain divided over how quickly policy easing might occur in 2024. The market's reaction was further influenced by comments from various officials and analysts. Federal Reserve Vice Chair Philip Jefferson emphasized the need for more forceful action due to high inflation uncertainty while speaking at a Zurich conference. The broader impact was seen across stock markets, with major indexes such as the Dow Jones, S&P 500 Index, and Nasdaq Composite Index all closing higher. European markets followed suit, buoyed by the U.S. inflation data. The news also brought comfort ahead of a meeting between US President Joe Biden and Chinese leader Xi Jinping, which is seen as a positive sign amidst global economic uncertainty. Additionally, precious metals like silver and platinum for December and January delivery respectively saw increases as well. This general uptick in precious metal prices aligns with the slight decrease in small-business optimism reported by the National Federation of Independent Business for October, reflecting cautious economic sentiment among small businesses amid inflationary concerns. While inflation is slowing down and remains above the Fed's two-percent target, Fed Chairman Jerome Powell and other officials have signaled readiness to hike rates again if necessary. The recent developments have also sparked discussions about a possible "soft landing" for the economy. In related commodities news, Brent North Sea crude and West Texas Intermediate prices showed stability despite ongoing concerns about high British interest rates sparked by UK wages rising faster than inflation. In contrast, a sharp fall is expected in British annual inflation. The drop in inflationary pressures also led to gains for raw material producers and marked what could be the end of the Federal Reserve's rate-hike cycle according to some Wall Street strategists. In mining news, Teck Resources (NYSE:TECK)' sale of its coal assets to Glencore (OTC:GLNCY) marked the biggest mining deal of the year, ending a lengthy saga that had been closely watched by investors and industry observers alike. https://www.investing.com/news/commodities-news/gold-and-copper-prices-rally-as-us-inflation-data-softens-93CH-3234549

2023-11-15 07:03

At the recent Singapore FinTech Festival, Umar Farooq, JPMorgan's Global Head of Financial Institution Payments, provided insights into the future of JPM Coin, the bank's blockchain-based payment system. In his remarks, Farooq predicted a significant increase in the daily transaction volume of JPM Coin, expecting it to surge from its current $1 billion to $10 billion within one to two years. JPM Coin stands as a notable live blockchain application among leading banks and is designed to help wholesale clients conduct transactions in dollars and euros through a private blockchain network. While blockchain technology is celebrated for enabling instant and cost-effective payments, its current usage within JPMorgan represents only a tiny portion of the bank's total daily US dollar transactions, which amount to an impressive $10 trillion. The potential scalability of blockchain compared to traditional payment systems has yet to be fully established. However, Farooq's forecast suggests a growing confidence in the technology's capacity to handle a larger volume of financial transactions. As JPMorgan continues to explore the capabilities of JPM Coin, industry observers will be watching closely to see if blockchain can indeed meet the high demands of modern finance. In a discussion with Bloomberg Television’s Haslinda Amin Today at the Festival, Farooq highlighted the dynamic infrastructure provided by tokenized money. Onyx, JPMorgan's blockchain-based payment system offers a programmable payments feature for wholesale clients using JPM Coin. This week, Siemens leveraged this feature to address funding gaps. Naveen Mallela, head of coin systems at Onyx, revealed the programmability of JPM Coin has facilitated real-time treasury operations by automating financial obligations like overdue payments and margin calls. This marks a significant milestone in the industry and embodies the transformative potential of blockchain technology in finance. https://www.investing.com/news/cryptocurrency-news/jpm-coin-daily-transactions-projected-to-hit-10-billion-93CH-3234546

2023-11-15 06:48

Copyrighted Image by: Reuters. Citi, a global financial services firm, has announced a partnership with the Monetary Authority of Singapore (MAS) to develop an innovative blockchain-based solution for foreign exchange (FX) transactions. The initiative, part of Project Guardian, aims to enhance the cross-border trading process by providing real-time FX price quotes and recording trade executions for any fiat currency pair on a blockchain. On Tuesday, under Project Guardian, Citi launched an application that enables real-time spot FX trades, initially with USD/SGD but adaptable to other fiat pairs. This new application provides further depth to the project's capabilities and increases its potential scope of impact in the financial industry. The new platform is designed to ensure immutable record-keeping and compliance with financial regulations while offering global liquidity, pricing, and risk management. According to Citi, this technology will improve both the pre-trade and execution stages of the trade life cycle. The system leverages oracles for bilateral messaging and supports best execution analysis on a single platform. This collaboration has garnered support from other financial institutions as well. T. Rowe Price Associates emphasized the need for user-friendly institutional-grade execution, while Fidelity International highlighted the transformative potential of distributed ledger technology for the finance industry. The Avalanche blockchain underpins the system, tasked with capturing price quotes and trade confirmations, which is crucial for maintaining financial stability and integrity. The application also incorporates Request For Stream (RFS), allowing real-time post-trade analysis on a single platform while recording price quotes and trade confirmations specific to each counterparty. This ensures that all transactions adhere to institutional compliance. Citi, with its extensive range of financial products and services available in nearly 160 countries, continues to lead in wealth management innovation through strategic partnerships like this one with MAS. https://www.investing.com/news/forex-news/citi-partners-with-mas-for-blockchainbased-fx-solution-93CH-3234547

2023-11-15 06:40

Copyrighted Image by: Reuters. Asian currencies, including the Indian rupee, saw a significant upswing on Wednesday as U.S. consumer price data released the previous day fueled market expectations for a potential Federal Reserve interest rate cut by May 2024. The unchanged consumer prices and the smallest annual rise in underlying inflation in two years have cooled expectations for earlier rate hikes, leading to a buoyant mood across Asian markets. The Indian rupee traded notably stronger against the U.S. dollar, reaching 83.0750 from Tuesday's 83.3350, marking its best performance in nearly six months. This surge came amidst a broader rally in Asian currencies prompted by the latest U.S. inflation report that suggested a slowing labor market. In response to the inflation data, U.S. Treasury yields fell with the 2-year yield nearing 4.80% and the 10-year yield at 4.44%. This decline in yields led to an increase in forward premiums, reflecting growing anticipation of a softer monetary policy stance from the Fed. The dollar index, which tracks the greenback against a basket of other major currencies, weakened to around 104, indicating a shift in investor sentiment towards riskier assets. Financial experts are closely monitoring these developments. ABN Amro released a note indicating that the inflation data could be favorable for the Federal Reserve and might even bring forward the timing of rate cuts. Meanwhile, Amit Pabari of CR Forex suggested that if the USD/INR pair falls below 82.95 during early trading hours, it could potentially push towards 82.50. Additionally, the 1-year implied yield rose by 6 basis points to 1.57%, mirroring the fall in U.S yields and underscoring the changing expectations for Fed policy in the coming year. Investors and market analysts will continue to watch for any further signs that could confirm a shift in the central bank's approach to managing inflation and interest rates. https://www.investing.com/news/forex-news/asian-currencies-rally-as-us-inflation-data-fuels-rate-cut-expectations-93CH-3234528