2023-10-25 04:06

Investing.com-- Most Asian currencies fell slightly on Wednesday as strong overnight data boosted the dollar, while the Australian dollar rose sharply as a strong inflation reading fueled expectations for an interest rate hike in November. The Australian dollar jumped 0.5% as data showed consumer price index inflation grew slightly more than expected in the third quarter. The reading came just a few days after Reserve Bank of Australia Governor Michele Bullock warned that sticky inflation could elicit more interest rate hikes. This saw markets begin pricing in the possibility of a rate hike when the bank meets on November 7. ANZ analysts now expect a 25 basis point hike in November, compared to earlier expectations of a hike in December. The prospect of a rate hike bodes well for the Australian dollar, which recently sank to 2023 lows amid concerns over slowing economic growth in the country. Optimism over China- Australia’s biggest trading partner- also aided the Australian dollar, as Beijing announced a 1 trillion yuan ($1=3.3122 yuan) bond issuance to fuel infrastructure development. The move is expected to fuel increased commodity demand in China, particularly for metals. China’s yuan weakened after the announcement, coming close to a one-year low, given that the bond issuance will also ramp up the country’s already elevated debt levels. Among other Asian units, the South Korean won lost 0.3% as data showed consumer confidence deteriorated in October. The Indian rupee fell 0.1%, but saw some relief as oil prices tumbled this week. The Japanese yen moved little, remaining within sight of the 150 level which traders believe will attract intervention in currency markets by the government. The Bank of Japan recently intervened in bond markets to tame overheated yields, which also put more pressure on the yen. The currency has been hit hard by a widening gap between local and U.S. interest rates, and is among the worst-performing Asian units this year. Dollar steadies with more economic cues, Fed meeting in focus The dollar index and dollar index futures fell slightly in Asian trade, but were sitting on strong overnight gains after data showed that U.S. business activity unexpectedly grew in October. The readings pointed to continued resilience in the U.S. economy, which in turn gives the Federal Reserve more headroom to keep raising interest rates. Fed Chair Jerome Powell is set to speak at a conference later in the day, after he had last week reiterated that U.S. rates will remain higher for longer. Third-quarter gross domestic product data is due on Thursday, and is expected to provide more cues on the world’s largest economy. Economic strength gives the Fed more headroom to keep rates higher. Still, the central bank is widely expected to keep rates on hold when it meets next week. https://www.investing.com/news/forex-news/asia-fx-muted-as-pmis-boost-dollar-aussie-rises-on-rate-hike-bets-3207792

2023-10-25 03:11

Copyrighted Image by: Reuters Bitcoin's value has experienced a significant surge, reaching a 17-month high of over $35,200. This marked a nearly $5,000 increase in a single day, contributing to the total cryptocurrency market value exceeding $1.24 trillion. Trading volume is nearing the $100 billion mark as anticipation for a Bitcoin ETF continues to grow. These developments were highlighted by Material Indicators in a social media post, which pointed out that an $87 million buying wall helped overcome market resistance and led to an R/S reversal. This surge followed Bitcoin breaking its previous resistance of $32,000 on Tuesday, where it peaked at $35,000. Despite the bullish trend, CryptoBullet issued a warning to traders about the potential risk of late longs being wiped out by market makers. The firm identified an abnormality in funding rates as indicative of a bull market structure, suggesting that the cryptocurrency rally led by Bitcoin should persist. Meanwhile, Bitcoin's dominance rose to 54%, easing investors' concerns about a prolonged bearish trend and large dumps. However, worries about a potential bull trap persist. In the midst of these fluctuations, alternative cryptocurrency Steem showcased its potential with a 25% gain, surpassing Bitcoin's 12% increase. This has led to strong recommendations for investment in Steem. James Stanley underscored the inverse correlation between DXY and BTC, predicting that the upcoming Personal Consumption Expenditures (PCE) data due on October 26, 2023 could significantly affect BTC's value. https://www.investing.com/news/cryptocurrency-news/bitcoins-value-surges-market-anticipations-in-view-93CH-3207780

2023-10-25 01:35

Copyrighted Image by: Reuters. Investing.com-- Oil prices fell slightly on Wednesday, extending sharp losses after a swathe of weak economic readings raised concerns over demand, although other data showed a sustained decline in U.S. inventories. The prospect of a deescalation in the Israel-Hamas war also stymied bets that the conflict will disrupt Middle Eastern oil supply, as multiple reports suggested that Israel had delayed a planned ground assault on Gaza. Crude prices fell about 2% on Tuesday as weak data from the euro zone pointed to deteriorating economic conditions in the region, which could in turn stymie oil demand. The weak data largely overshadowed positive purchasing managers’ index readings from the U.S., while other data also showed that U.S. inventories likely shrank further in the past week. Brent oil futures fell 0.1% to $87.98 a barrel, while West Texas Intermediate crude futures fell 0.2% to $83.56 a barrel by 20:58 ET (00:58 GMT). Both contracts were close to a two-week low. US inventories unexpectedly shrink- API Data from the American Petroleum Institute (API) showed that U.S. inventories shrank more than 2 million barrels (mb) in the week to October 20, ducking expectations for a build of 1.6 mb. The reading indicated that steady exports and domestic fuel consumption were keeping U.S. supplies tight, with fuel demand remaining strong even after the end of the summer season. The API data usually heralds a similar trend in government data on inventories, which is due later on Wednesday. The decline in inventories comes amid tightening global supplies, following deep supply cuts by Saudi Arabia and Russia earlier this year. The inventory data was preceded by strong PMI readings, which showed that both U.S. manufacturing and services activity unexpectedly grew in October. But the pace of growth remained languid. Still, the dollar benefited from the improved data, which also weighed on oil prices. A stronger dollar makes U.S. crude more expensive for international buyers. European recession fears rock oil markets Weak PMI data from the euro zone, released on Tuesday, was a key source of anxiety for oil markets this week as traders feared a recession in the region will dent oil demand. Germany- the region’s biggest economy- is already in a recession, with Tuesday’s reading indicating no signs of improvement. The weak data came just a few days before a European Central Bank meeting, where the bank is widely expected to keep interest rates on hold. Beyond the ECB, markets were also on edge over a Federal Reserve meeting next week. https://www.investing.com/news/commodities-news/oil-prices-nurse-steep-losses-as-demand-fears-outweigh-tight-supplies-3207768

2023-10-25 01:35

Copyrighted Image by: Reuters. Investing.com - Crude prices rose for the first time in four days, with global benchmark Brent recapturing key $90 per barrel pricing, as traders braced for the possibility of contagion from the Israel-Hamas war that could disrupt oil traffic in the Middle East — despite little evidence of such impact. The rebound came despite a surprise tick up in stockpiles of both crude oil and gasoline in the United States last week. New York-traded West Texas Intermediate, or WTI, crude for December delivery, settled at $85.39, up $1.65, or 2% on the day. WTI had fallen just over 6% in three prior days. UK-origin Brent crude for December delivery settled at $90.13, down up $2.06, or 2.3%. Brent was down nearly 5% over three prior sessions. On the Israel-Hamas war front, Israeli forces battled on four fronts on Wednesday, striking targets in Gaza, the West Bank, Lebanon and Syria. “It’s really hard to assign an appropriate war risk premium to crude now because the Middle East oil traffic hasn’t really been impacted by this conflict,” said John Kilduff, partner at New York energy hedge fund Again Capital. “Yet, concerns of a contagion remain, thus the reversion to risk on a day like this, when the market should probably be lower because of the build in US crude stocks.” Surprise build in US crude oil, gasoline stocks US crude oil stocks rose above the consensus of Wall Street analysts, with an unexpected rise at the federal level and at the storage hub tied to the delivery of contracts traded on the New York Mercantile Exchange, a government report showed Wednesday. The build in crude inventories for the week ended Oct. 20 came after a drop in exports, the Weekly Petroleum Status Report of the Energy Information Administration, or EIA, showed. The US crude inventory balance rose by 1.372 million barrels during the week ended October 20, according to the EIA, versus analysts' consensus for a drop of 0.45M barrels. The build contrasted with the 4.491 million draw in the prior week to October 13, which was helped by a spike in exports. Last week, crude oil exports fell to 4.833M barrels per day from a prior 5.301M. Aside from the build in crude stockpiles at the federal level, there was also a rise of 0.213M barrels specifically at the Cushing, Oklahoma storage hub which serves as delivery point for US West Texas Intermediate crude futures traded on the New York Mercantile Exchange. Cushing storage levels have dropped drastically this year, prompting concerns they might reach such critical lows to complicate operations at the storage hub. In the prior week, the storage hub saw a net outflow of 1.005M barrels. Higher stockpiles were noted in gasoline, the premier US fuel product, while distillates — a raw material for diesel and heating fuel — saw draws. On the gasoline inventory front, there was a build of 0.156M barrels versus the prior draw of 2.371M and analysts’ consensus for a decline of 1.266M. Automotive fuel gasoline is the No. 1 U.S. fuel product. With distillate stockpiles, there was a drop of 1.686M barrels on top of the prior week’s deficit of 3.185M and analysts’ consensus for a drop of 1.75M. Distillates are refined into heating oil, diesel for trucks, buses, trains and ships and fuel for jets. https://www.investing.com/news/commodities-news/oil-up-after-3day-drop-as-some-warrisk-premium-creeps-back-in-3207768

2023-10-24 21:53

Ethereum's price trajectory continues to ascend, with the cryptocurrency recently breaking through a significant resistance barrier at $1649. Analysts at Coinotag have noted that if Ethereum can sustain daily closures above the critical resistance of $1743, it could potentially aim for a $2100 target. In the shorter term, Ethereum is striving to maintain its upward momentum, provided it stays above the $1649 mark. If it dips below this level but manages to bounce back, analysts suggest a new target of $1778 could be within reach. However, despite the positive outlook, Coinotag analysts also caution investors of potential retreats. If Ethereum fails to uphold the $1649 level, it could fall back into the range of $1602–$1584. Previously, they had indicated that a fall below $1538 might trigger a slide down to the support range of $1448–$1370. This caution is not without precedent. Prior to the recent surge, strong buying reactions led to a reversal after Ethereum had threatened to dip below the $1538 level. This resulted in over 10% gains for investors. However, failure to conquer the resistance at $1743 could prompt a retracement back to the level of $1538 or even a further fall into the support zone of $1448–$1370. The current market dynamics underscore the volatile nature of cryptocurrencies and emphasize the necessity for investors to stay abreast of market trends and predictions. As Ethereum continues its upward journey, all eyes will be on whether it can sustain these levels and reach its potential targets. https://www.investing.com/news/cryptocurrency-news/ethereum-eyes-2100-target-analysts-warn-of-potential-pullback-93CH-3207721

2023-10-24 20:40

Copyrighted Image by: Reuters Bitcoin's price surged to $35,000 on Tuesday, marking a year-to-date rally of 107% and a monthly increase of 28%. The peak is the highest since May 2022, driven by anticipation of spot Exchange-Traded Fund (ETF) approval. The surge led to bearish crypto traders suffering losses of approximately $178 million within one day, according to a CoinDesk report. The cryptocurrency later stabilized around $34,200 after an 11.5% surge on Tuesday. Bitcoin's value slightly fell to around $34,440 by midday in New York. Data from CoinGlass indicated that Monday saw $400 million in crypto liquidations, with Bitcoin futures contributing half. Major crypto exchanges Binance, Huobi, and OKX each had $50 million in liquidations. Spot bitcoin ETF applications by financial giants BlackRock (NYSE:BLK), Fidelity, and VanEck to the Securities and Exchange Commission (SEC) have buoyed the optimism in the crypto market. Grayscale Investment's legal victory against the SEC's effort to block its bitcoin trust conversion into a spot bitcoin ETF further fueled this optimism. The listing of "iShares Bitcoin Trust" on the Depository Trust and Clearing Corporation website indicates impending ETF trading. A spot ETF would create a tradeable item tied to Bitcoin's current price, allowing more investors to participate without owning Bitcoin directly. Despite concerns about Bitcoin's volatility and potential market manipulation, the SEC has shown restraint in its response. Analysts are predicting that SEC approval could push bitcoin prices to a staggering $180,000 before the cryptocurrency's scheduled halving in April 2024. The SEC's decision not to appeal against Grayscale's court ruling further supports this optimism. Crypto advocate billionaire Mike Novogratz predicts spot ETF approval this year, which could significantly benefit Coinbase (NASDAQ:COIN) Global. The company reported a Q2 revenue of $707.9 million, and the ETF approval could boost its performance further. Riot Platforms and Marathon Digital (NASDAQ:MARA) Holdings, each with a market cap of $2.17 billion, have outperformed Bitcoin this year. Riot has diversified its operations across Bitcoin Mining, Data Center Hosting, and Engineering, using a unique Power and Demand Response Credits strategy for a 5.2% YoY growth with $76.7 million in revenue in Q2 2023. Despite the Federal Reserve's interest rate hikes suppressing prices, the Bitcoin ETF hype continues to fuel the market. https://www.investing.com/news/cryptocurrency-news/bitcoin-etf-anticipation-drives-price-surge-and-crypto-market-optimism-93CH-3207652