2023-10-31 04:50

In recent discussions with Paul Tudor Jones, Stanley Druckenmiller, the founder of Duquesne Capital Management, has shown an optimistic outlook toward Bitcoin's potential as a secure store of value. He equated Bitcoin and gold, despite currently only owning the latter. This comes after his past ownership and subsequent liquidation of Bitcoin due to restrictions imposed by central banks. Druckenmiller also recognized the potential of blockchain technology, predicting that a ledger-based system could eventually replace the U.S. dollar as the global reserve currency. He further compared Ethereum to "Myspace before Facebook (NASDAQ:META)," suggesting that Ethereum might eventually dominate over Bitcoin. Despite his bullish stance on Bitcoin, it is worth noting that the cryptocurrency has faced criticism from other prominent figures such as Warren Buffet and Charlie Munger, who have referred to it as "rat poison." Druckenmiller's firm has boasted an average annual return of 30% from 1981 to 2010. At the time of reporting, Bitcoin was valued at $34,237.44. https://www.investing.com/news/cryptocurrency-news/stanley-druckenmiller-sees-bitcoin-and-gold-as-secure-stores-of-value-predicts-ethereums-dominance-93CH-3214590

2023-10-31 04:37

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies fell on Tuesday as Chinese economic data showed an unexpected decline in business activity, while the Japanese yen tumbled after the Bank of Japan maintained its ultra-dovish course. Investors also remained largely on edge before the conclusion of a Federal Reserve meeting on Wednesday. The dollar index and dollar index futures both strengthened slightly in Asian trade after logging some overnight losses. But the greenback still retained a bulk of recent gains, with focus squarely on the Fed. While the central bank is expected to keep rates on hold, it is also likely to reiterate its higher-for-longer stance on interest rates- a scenario that bodes well for the dollar and poorly for risk-driven Asian currencies. Yen tumbles as BOJ maintains dovish course The Japanese yen slid 0.6%, crossing 150 once again after the BOJ kept interest rates negative, and only made minimal changes to its yield curve control (YCC) policy. The central bank said it will allow some more flexibility in its YCC, potentially letting bond yields move above their 1% cap. But this largely disappointed markets hoping for a more aggressive move by the BOJ. Benchmark 10-year yields trimmed some gains after the move, and fell further away from the 1% ceiling. Weak economic data also weighed on the yen, after readings on both industrial production and retail sales disappointed for September. The BOJ also forecast higher inflation and worsening economic conditions in the coming years, and that it will continue with its pace of quantitative easing in the near-term. Chinese yuan inches lower on weak PMIs The Chinese yuan fell slightly as headwinds from disappointing data were somewhat offset by a stronger daily midpoint fix by the People’s Bank of China. Purchasing managers index data showed that China’s manufacturing sector contracted in October, while growth in the non-manufacturing sector slowed substantially. The readings indicated that recent government stimulus measures had provided only limited relief to the economy, and that more support was needed. Activity was also hit by worsening economic conditions in China’s biggest trading partners. The Australian dollar and South Korean won, both of which are heavily exposed to China, sank 0.5% after the PMI reading. Most Southeast Asian units also clocked heavy losses, with the Singapore dollar losing 0.2%. The Indian rupee was among the few outliers for the day, trading flat as pressure from the dollar was offset by a decline in oil prices, which benefited the rupee. Still, it remained close to record lows. https://www.investing.com/news/forex-news/asia-fx-spooked-by-weak-chinese-pmi-yen-slides-on-dovish-boj-3214576

2023-10-31 02:58

Copyrighted Image by: Reuters. Bitcoin's recent rally has seen a surge in both institutional and retail investor activities, with the cryptocurrency stabilizing near $34K after reaching its highest value since May 2022 of over $35K. This marks a significant 107% year-to-date increase, fueled by anticipation around spot exchange-traded funds (ETFs) and a rise in safe haven demand. Last week, Bitcoin transactions exceeding $100K, typically associated with 'whale' investors, reached a year-to-date high of 23,400. This increased activity coincides with the filing of Blackrock (NYSE:BLK)'s ETF application and is believed to have amplified interest in Bitcoin among whales and institutions, according to data from IntoTheBlock. The Securities and Exchange Commission (SEC) is expected to approve several spot-based ETFs next year. This development could potentially push Bitcoin's market value to $42K or beyond. Meanwhile, Deutsche Digital Assets' data indicates that retail investor activity is also on the rise. The onchain activity index for small entities reached a new annual high of 1.5 last week, suggesting an increased participation from small investors. This surge in both institutional and retail participation underscores the growing interest in Bitcoin as it continues its upward trajectory. The anticipated approval of several spot-based ETFs next year could further stimulate this activity and potentially push Bitcoin's market value to new heights. https://www.investing.com/news/cryptocurrency-news/bitcoins-surge-to-35k-sparks-uptick-in-whale-and-retail-activity-93CH-3214567

2023-10-31 00:38

Copyrighted Image by: Reuters. Investing.com-- Oil prices rose slightly in Asian trade on Tuesday after plummeting nearly 3% in the prior session amid easing concerns over Middle East supplies and growing anticipation of the Federal Reserve, although weak economic data from China weighed on sentiment. Crude prices logged heavy losses as no immediate escalation in the Israel-Hamas war saw traders pricing in a lower risk premium over the conflict. The outbreak of the war had spurred some fears that it could draw in other Middle Eastern powers and disrupt oil supplies in the region- fears which are yet to be realized. But traders remained wary of any new developments in the war, especially as Israel launched a massive ground offensive on Gaza. Traders chose to lock-in recent profits, hunkering down before a string of key economic events this week, most notably a Fed decision on interest rates this Wednesday. Brent oil futures rose 0.1% to $86.66 a barrel, while West Texas Intermediate crude futures rose 0.5% to $82.69 a barrel by 21:52 ET (01:52 GMT). Both contracts lost between 2% and 3% on Monday, following a similar loss over the past week. China PMIs disappoint as manufacturing activity shrinks Key purchasing managers index (PMI) data from world no.1 oil importer China showed that manufacturing activity unexpectedly shrank in October, while non-manufacturing growth slowed substantially. The reading indicated that despite a slew of stimulus measures from Beijing, business activity was struggling to pick up amid worsening local and overseas demand for Chinese goods. The data also raised more questions over just how much more Chinese oil consumption will increase this year, given the steadily worsening economic conditions. Chinese oil and gas giant Sinopec (OTC:SHIIY) recently said that China’s fuel demand had likely peaked this year, and was set to taper off amid increased demand for electric vehicles. Chinese officials have rolled out a string of spending measures in recent months, and are also set for a massive 1 trillion yuan ($140 billion) bond issuance in the fourth quarter to increase infrastructure spending. Fed meeting, rate outlook in focus Oil markets were also largely risk-averse before the conclusion of a Fed meeting on Wednesday. While the central bank is expected to keep interest rates unchanged, it is also expected to reiterate that rates will remain higher for longer. Such a scenario is expected to weigh on economic growth in the coming months, and is expected to potentially stymie oil demand as monetary conditions tighten across the globe. Strength in the dollar- as markets positioned for the Fed meeting- also weighed on oil prices in recent sessions. Before the Fed, the Bank of Japan is also set to meet on Tuesday, and could potentially tighten monetary policy. https://www.investing.com/news/commodities-news/oil-prices-rise-after-bruising-losses-fed-key-china-data-awaited-3214551

2023-10-31 00:38

Copyrighted Image by: Reuters. Investing.com - Crude prices fell hard for a second day in a row and looked poised to end October with double-digit losses as oil bulls who rushed to hedge against the Israel-Hamas war discovered to their disappointment that the rest of the market wasn’t prepared to assign a war risk premium to a trade simply unaffected by the conflict. Weaker-than-anticipated factory activity in top crude importer China added to the gloom of the market. New York-traded West Texas Intermediate, or WTI, crude for December delivery, settled at $81.02 per barrel, down $1.29, or 1.6% on the day, adding to Monday’s 3.8% slump. Aside from its more than 5% drop on the week, the US crude benchmark looked likely to finish the current month down as much as 11%. That would be its worst performance since May, just before the announcement of Saudi-Russian production cuts that led to four straight months of rally in oil. UK-origin Brent crude’s most-active January contract was at $85.16, down $1.19, or 1.4%, by 15:00 Eastern US Time (19:00 Greenwich Mean Time). Brent was also down almost 11% on the month in what appeared to be its worst month since August 2022. After last week’s stumble, oil began this week deeper in the red as traders looked beyond the war in the Middle East to concerns over what the Federal Reserve could do at its interest rate decision on Wednesday. “It is interesting crude prices have given up the bulk of their gains since Hamas attacked Israel which suggests either the geopolitical risk-premium has sharply reduced or global economic concerns have increased, perhaps a combination of the two,” said Craig Erlam, analyst at online trading platform OANDA. The Fed is expected to hold interest rates unchanged after 11 hikes between March 2022 and July this year that boosted the base US lending rate from just 0.25% to 5.5%. But the central bank still has another meeting in December where it could still do another raise. Data showed on Tuesday that US labor costs increased solidly in the third quarter amid strong wage growth while house price inflation accelerated in August, the latest signs that the Fed could keep interest rates high for some time. On top of the wage inflation report, the Fed will get an even more influential reading on US jobs and wages when October’s non-farm payrolls report is released on Friday. In China, manufacturing activity unexpectedly shrank in October, while non-manufacturing growth slowed substantially. The reading indicated that despite a slew of stimulus measures from Beijing, business activity was struggling to recover and raised more questions over just how much more Chinese oil consumption will increase this year, given the steadily worsening economic conditions. https://www.investing.com/news/commodities-news/oil-down-2nd-day-in-row-poised-for-huge-october-loss-3214551

2023-10-31 00:06

Copyrighted Image by: Reuters. The GBP/AUD exchange rate experienced a downturn today, impacted by strong Australian retail data and concerns about the UK economy. This follows last week's dip in the currency pair due to disappointing UK labor market indicators and anticipation of a rate hike by the Reserve Bank of Australia (RBA). Australia's robust retail data, indicative of solid consumer spending despite high inflation and interest rates, bolstered the Australian Dollar (AUD). Taylor Nugent from National Australia Bank (OTC:NABZY) suggested that this could lead the RBA to sustain its tightening policies. The British Pound (GBP), on the other hand, struggled due to a dearth of data, sparking investor apprehension about the UK economy and diminishing expectations for a Bank of England (BoE) rate hike. The BoE's consumer credit report indicated a deceleration in public borrowing, which might aid the UK economy's recovery. However, Sterling remained low due to factors such as the Israel-Hamas conflict and overall market sentiment. Anticipation of a pause in BoE's tightening cycle, a future hawkish speech from RBA Assistant Governor Brad Jones, and recent hawkish indications from the RBA suggesting another interest rate hike could further influence the GBP/AUD exchange rate. The performance of AUD may also be affected by October’s manufacturing Purchasing Managers' Index (PMI). Given its riskier nature compared to Sterling, AUD may weaken if the market mood turns sour. Last week saw the GBP/AUD exchange rate reach a five-week high amidst an anxious market mood, only to face pressure due to contractions in the UK's manufacturing and service sectors. A high inflation reading midweek in Australia pushed AUD to a three-week high against GBP. This momentum was momentarily weakened by RBA Governor Michele Bullock's indifferent stance on the inflation surge until Westpac forecasted a November RBA rate hike, restoring AUD's strength. Simultaneously, the Confederation of British Industry’s (CBI) distributive trades survey revealed the worst October reading since 2017 for UK sales data, further dampening GBP. Key events to watch include the BoE interest rate decision and Australia's September trade surplus, both of which could cause AUD fluctuations. Additionally, a dovish decision by the Federal Reserve could alter the market mood and subsequently impact AUD. https://www.investing.com/news/forex-news/gbpaud-exchange-rate-dips-amid-strong-australian-retail-data-and-uk-economic-concerns-93CH-3214539