2023-10-30 08:37

Copyrighted Image by: Reuters Investing.com - The U.S. dollar edged higher in early European trade Monday, retaining last week’s strength at the start of a week that includes several central bank meetings, most importantly by the Federal Reserve, as well as a slew of important economic data releases. At 03:20 ET (08:40 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 106.445. The index gained around 1% last week. Federal Reserve meets this week The U.S. dollar has been on the front foot of late, helped by signs of U.S. economic strength, even after a prolonged period of interest rate hikes by the Federal Reserve. U.S. consumer spending surged in September, while the U.S. economy grew at its fastest pace in nearly two years in the third quarter. Fed policymakers meet this week, with the central bank expected to keep rates on hold when the decision is announced on Wednesday, However, traders are apprehensive that these strong numbers will mean that they signal higher-for-longer rates as they continue to move fret about overheated inflation. Yen gets reprieve ahead of BOJ meeting USD/JPY fell 0.1% to 149.50, with the yen getting a slight reprieve after the pair rose to a one-year high of 150.78 last week. The focus was squarely on the conclusion of a BOJ meeting on Tuesday, where the central bank is expected to potentially announce further changes to its yield curve control policy, as it grapples with high inflation and a severely weakened yen. Recent data showed a growing resurgence in Japanese consumer inflation, which could push the BOJ into indicating plans to scale back its ultra-loose policy. Euro slips after German, Spanish inflation data EUR/USD fell 0.1% to 1.0554, with the single currency retreating after data showed inflation falling in the eurozone, just a few days after the European Central Bank ended the longest streak of interest rate rises in its 25-year history last week, leaving its main policy rate at 4%. Data released early Monday showed that consumer prices rose 3.1% in October on an annual basis in the state of North Rhine Westphalia, Germany’s most populous state, a drop from 4.2% the prior month. Additionally, Spanish CPI rose 0.3% on the month in October, below the 0.6% expected, and climbed 3.5% on an annual basis, below the expected 3.8%. BOE seen on hold GBP/USD fell 0.2% to 1.2094, with the Bank of England also holding a policy meeting later in the week. The central bank is widely expected to keep interest rates on hold despite growing worries about a recession, with its inflation rate at 6.7% in September, the highest among the world's major economies. Elsewhere, AUD/USD rose 0.3% to 0.6352, NZD/USD rose 0.1% to 0.5820, and USD/CNY edged higher to 7.3185, with markets waiting for key Chinese purchasing managers index data due on Tuesday. https://www.investing.com/news/forex-news/dollar-edges-higher-ahead-of-crucial-fed-meeting-3213202

2023-10-30 08:19

In a strategic move to boost Asia-Pacific cryptocurrency adoption, Zodia Custody, supported by Standard Chartered (OTC:SCBFF), Northern Trust (NASDAQ:NTRS), and SBI Holdings, is set to introduce its robust crypto storage solutions in Hong Kong. The expansion is part of Zodia's broader strategy that includes Japan, Singapore, and Australia. Julian Sawyer, CEO of Zodia, noted that institutional clients are the primary drivers of demand in Hong Kong. The local authorities view digital assets as the future and are keen on positioning Hong Kong as a thriving hub in this burgeoning industry. This progressive stance towards digital assets comes despite China's ban on bitcoin trading and mining. The Hong Kong Securities and Futures Commission (SFC) recently introduced a regulatory framework for digital assets. The guidelines mandate exchanges to operate within a regulated framework. Only two firms - OSL Digital and Hash Blockchain - have so far secured licenses from the SFC to provide services in Hong Kong. Zodia is currently in negotiations with the SFC and the Hong Kong Monetary Authority for potential regulatory approval. Once approved, Zodia will initially serve Hong Kong clients with a select range of crypto assets. This new regulatory regime has attracted interest from major players in the crypto industry. Crypto giants including Binance-backed HKVAEX and OKX are considering establishing their institutions in the region. These developments underline the growing interest from institutional players in the region's digital asset market, which is seen as a positive sign for the future of cryptocurrency adoption in Asia-Pacific. https://www.investing.com/news/cryptocurrency-news/zodia-custody-expands-crypto-services-to-hong-kong-amid-growing-institutional-demand-93CH-3213173

2023-10-30 06:30

Copyrighted Image by: Reuters Gold prices have surpassed the $2,000 mark, driven by increased demand for safe-haven assets amid escalating geopolitical tensions in the Middle East and ahead of the Federal Open Market Committee (FOMC) meeting. This development comes as US Treasury yields have retreated from recent peaks but remain elevated, with the 10-year bond yield reaching a level not seen since 2007 at 5.02%. The surge in US government debt returns has bolstered the strength of the US Dollar, resulting in an appreciation of both USD and gold. Gold, however, which does not bear interest, typically experiences selling pressure when the US Dollar and Treasury yields rise. Despite these factors and US real yields hitting a 15-year high of over 2.60%, gold prices have shown resilience. The precious metal continues to hold its ground, demonstrating its value in times of uncertainty and market volatility. https://www.investing.com/news/commodities-news/gold-prices-break-2000-amid-geopolitical-tensions-and-fomc-anticipation-93CH-3213094

2023-10-30 04:40

Copyrighted Image by: Reuters. Investing.com-- Gold prices fell slightly on Monday, but remained above the key $2,000 level as uncertainty over the Israel-Hamas war kept safe haven demand elevated before a Federal Reserve meeting this week. The yellow metal hit a 5-½ month high last week as continued uncertainty over the Middle Eastern conflict kept investors biased towards traditional safe havens. Israel had over the weekend launched a ground assault on Gaza, with markets waiting to see if any other Arab powers would join the conflict. But further gains in gold were somewhat held back by a stronger dollar, as markets positioned for a Federal Reserve meeting this week. The greenback firmed slightly on Monday, as did Treasury yields. Spot gold fell 0.2% to $2,002.22 an ounce, while gold futures expiring in December steadied at $2,011.70 an ounce by 00:22 ET (04:22 GMT). Both instruments remained close to their highest level since mid-May. Fed meeting, data deluge awaited Markets were now focused squarely on the conclusion of a two-day Fed meeting on Wednesday, where the central bank is widely expected to keep interest rates on hold. But traders expect the Fed to reiterate its stance on higher-for-longer rates, especially as recent data showed that inflation had picked up again, while economic growth remained resilient. Fed officials have still left the door open for at least one more rate hike this year. Nonfarm payrolls data, due on Friday, is expected to factor into this outlook. Strength in the U.S. economy also gives the Fed more headroom to keep rates higher. Higher rates bode poorly for gold, given that they increase the opportunity cost of investing in the yellow metal. This notion had battered gold prices over the past year, as global interest rates rose. Rate decisions from the Bank of Japan and Bank of England are also due this week. Copper rises on China PMI hopes Among industrial metals, copper prices rose slightly on Monday in anticipation of key economic data from China this week. Copper futures rose 0.3% to $3.6508 a pound, and were close to a three-week high. Chinese purchasing managers index data is due on Tuesday, and is expected to show more improvement in manufacturing activity in the world’s largest copper importer. But gains in copper are still likely to be limited, as anticipation of the Fed meeting keeps risk appetite weak. https://www.investing.com/news/commodities-news/gold-prices-hold-above-2000-as-fed-meeting-approaches-3212969

2023-10-30 03:47

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies moved little on Monday, while the dollar steadied as traders hunkered down before a string of central bank meetings this week, most notably the Federal Reserve and Bank of Japan. Persistent concerns over the Israel-Hamas war remained in play, as Israel launched a large-scale ground assault on Gaza. But signs of no immediate escalation in the conflict offered some relief to risk-driven markets. The dollar index and dollar index futures firmed slightly in Asian trade, retaining most of their gains from last week as markets remained largely apprehensive of a Fed interest rate decision on Wednesday. The central bank is set to keep rates on hold, but is likely to signal higher-for-longer rates as it continues to move against overheated inflation. Higher U.S. rates bodes poorly for Asian currencies, as the gap between risky and low-risk yields narrows. U.S. Treasury yields also advanced on Monday, remaining within sight of recent peaks. Most Asian currencies stuck to a flat-to-low range as sentiment remained frail. The Australian dollar was among the few outliers for the day, rising nearly 0.4% as data showed a stronger-than-expected jump in retail sales through September. The reading factors into higher inflation expectations, and furthers bets that the Reserve Bank of Australia will hike interest rates when it meets next week. Japanese yen steady below 150, hawkish BOJ in focus The Japanese yen firmed slightly on Monday, moving below the 150 level after sinking to a one-year low last week. Focus was squarely on the conclusion of a BOJ meeting on Tuesday, where the central bank is expected to potentially announce further changes to its yield curve control policy, as it grapples with high inflation and a severely weakened yen. Recent data showed a growing resurgence in Japanese consumer inflation, which traders bet could push the BOJ into scaling back its ultra-loose policy. Analysts also see an end to the bank’s negative interest rates in 2024. Any hawkish moves by the BOJ are expected to benefit the yen, which is one of the worst-performing Asian currencies this year. Markets were also watching for any intervention by the Japanese government in currency markets, to support the yen. Among other currencies, China’s yuan was flat on Monday, with markets waiting for key purchasing managers index data due on Tuesday. The reading is expected to show some improvement in Asia’s largest economy. The Indian rupee rose 0.2%, tracking a decline in oil prices, while the South Korean won and the Taiwan dollar also added 0.2% each. Beyond the Fed and the BOJ, the Bank of England is also set to decide on interest rates this week. https://www.investing.com/news/forex-news/asia-fx-muted-dollar-steadies-with-fed-boj-meetings-in-sight-3212905

2023-10-30 01:30

Copyrighted Image by: Reuters. Investing.com - Crude prices tumbled almost 4% on Monday as the market looked beyond the war in the Middle East to focus on what the Federal Reserve might do or say at its interest rate decision on Wednesday. Concerns over how U.S. jobs numbers for October will turn out on Friday also kept oil traders on the edge. New York-traded West Texas Intermediate, or WTI, crude for December delivery, settled at $82.31, down $3.23, or 3.8%. The US crude benchmark has been in yo-yo mode for a week now, rising or falling more than 2% in a session, as the Israel-Hamas war raging on the Palestinian territory of Gaza had markets on the tenterhooks. Last week, WTI finished down 3.6% and is due to finish October down almost 10% as things stand. UK-origin Brent crude for December delivery settled at $87.45, down $3.03, or 3.4%. Last week, the global crude benchmark fell nearly 2%. It is on track to end October down 9%. It would be remiss to say traders aren’t on the lookout for headlines on the war in the Middle East, after Israel launched at the weekend its much-anticipated ground assault on Gaza. Israeli troops and tanks attacked Gaza's main northern city from the east and west of the Palestinian enclave on Monday, Reuters reported. No disruption to oil traffic in the Middle East But without any disruption to the oil traffic moving in waters around the battle zone, it was hard to maintain a war premium risk for crude just on grounds of proximity, said those in the know. "There is a propensity for market users in all their guises to have at least some oil length going into the weekends and when the fear of conflict spread shows no validation come the early hours of Monday mornings' openings, that fear hedge is ordinarily unwound," John Evans of oil broker PVM said in comments carried by Reuters. CMC Markets (LON:CMCX) analyst Tina Teng concurred, saying: "Despite an escalation in the Hamas-Israel war, the ground invasion was widely expected. The weekend playout signals no further expansion into a wider regional war, which caused a retreat in oil prices." The Fed is widely expected to keep rates on hold this week. But officials have still kept the door open for one more rate hike this year, especially following several hotter-than-expected inflation readings. The dollar steadied on Monday, retaining recent gains and weakening international demand for crude, which is priced in the US currency. The key piece of economic data this week will, however, be Friday’s non-farm payrolls report for October. After a blockbuster 336,000 jobs were added in September, economists are expecting more moderate jobs growth of 182,000, which is still consistent with a robust labor market. The unemployment rate is expected to remain at 3.8%, while wage growth is expected to ease to 4% year-on-year, which would mark a post-pandemic period low, and could help bolster the Fed’s view that price pressures are easing and that it doesn't need to raise interest rates any further, relieving pressure on economic activity in the largest oil consumer in the world. Ahead of Friday’s data, market participants will be looking at data on third-quarter employment costs on Tuesday for signs that wage growth is moderating. But before the Fed meeting, markets are also awaiting key purchasing managers index data from China, which is set to shed more light on business activity in the world’s biggest oil importer. China’s economy has shown some signs of stabilizing in recent months after seeing a sharp decline in growth this year. The country’s aviation regulator recently said it will increase domestic flights to 34% above pre-pandemic levels- a positive sign for oil demand, although air travel still makes up a small portion of the China’s overall fuel consumption. The Bank of Japan is also set to meet on Tuesday, with traders pricing in a potential policy shift in the bank as it grapples with rising inflation. https://www.investing.com/news/commodities-news/oil-down-almost-4-surrendering-war-premium-amid-fed-focus-3212846