2024-02-20 12:11

Copyrighted Image by: Reuters. CME Group (CME) to Launch Micro Euro-denominated Bitcoin and Ether Futures on March 18 CME Group, the world's leading derivatives marketplace, today announced it plans to further expand its cryptocurrency derivatives offering with the addition of Micro Bitcoin Euro and Micro Ether Euro futures on March 18, pending regulatory review. "Global investors have sought more precise tools to manage their risk as interest for bitcoin and ether grows. As such, we have seen a four-fold increase in volume in our USD-denominated Micro Bitcoin and Micro Ether futures," said Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group. "The launch of these new Micro Euro-denominated contracts will provide clients with additional products to more efficiently hedge bitcoin and ether exposure in the second-highest traded fiat behind U.S. dollar-based contracts. Year-to-date, 24% of Bitcoin and Ether futures volume at CME Group has been transacted from the EMEA region, and we continue to develop additional tools for clients there to hedge their crypto portfolios and express or take a view on potential market moves." Designed to match their U.S. dollar-denominated counterparts, Micro Bitcoin Euro and Micro Ether Euro futures contracts will be sized at one-tenth of their respective underlying cryptocurrencies. These new futures contracts will be listed on and subject to the rules of CME. "TP ICAP will support this market-defining crypto derivative from CME Group by providing block facilitation services to this product. Our global Digital Assets business has been providing price discovery and execution services on CME Group's (NASDAQ:CME) suite of crypto derivatives since the start of 2020, leveraging TP ICAP's strengths in connecting market participants as the foundation for our Digital Assets proposition," said Sam Newman, Digital Assets Head of Broking at TP ICAP. "Interest in crypto derivatives has seen huge worldwide growth in recent years and these new euro-denominated micro futures contracts will help further expand the accessibility and utility of crypto derivatives, particularly within Europe." CME Group's Cryptocurrency product suite continues to provide consistent liquidity, volume, and open interest for clients seeking to hedge their risk or gain exposure to the asset class. January was a record month in terms of average daily volume (71K contracts) across all Cryptocurrency products. In addition, average daily open interest for Bitcoin and Ether futures reached all-time highs for the month (23.5K contracts and 6K contracts, respectively). Micro Bitcoin and Micro Ether futures also saw a trading surge, with average daily volumes growing 43% versus December 2023. https://www.investing.com/news/cryptocurrency-news/cme-group-to-launch-micro-eurodenominated-bitcoin-and-ether-futures-on-march-18-432SI-3308291

2024-02-20 09:05

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar slipped lower in early European trade Tuesday, but remains close to recent highs given the prospects of higher-for-longer U.S. interest rates, while the euro faces a wages test later in the session. At 04:45 ET (09:45 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 104.082. Dollar quiet ahead of Fed minutes The greenback has edged lower Tuesday with U.S. traders set to return after Monday’s Presidents’ Day holiday, but remained close to three-month highs amid mounting expectations that the Federal Reserve will delay the start of its rate-cutting cycle to the start of the summer compared with the expected March at the beginning of the year. Data released last week showed both U.S. producer prices and consumer prices increased more than expected in January, while Fed official Mary Daly stated on Friday that there is still "more work to do" to bring inflation back down to the U.S. central bank's 2% target. The U.S. economic data calendar is largely empty Tuesday, likely resulting in quiet trading ahead of the release of the minutes of the Fed meeting from last month, scheduled for Wednesday. “The view that the U.S. data will turn at some point, the Federal Reserve will cut, and the dollar will decline remains a consensus one (and often translates into selling USD rallies),” said analysts at ING, in a note. “We favor a strong dollar in the near term as U.S. data remains supportive, but this looks increasingly to be the perfect recipe for range-bound trading.” Euro awaits ECB wage data In Europe, EUR/USD traded 0.2% higher at 1.0795, helped data showing the eurozone's current account in a larger than expected surplus in December, pointing to economic recovery. Traders are now keenly awaiting the release of regional fourth-quarter negotiated wages data, due later in the session, given the importance Europe's central bank has placed on wage growth as it attempts to contain inflation. “This wage indicator had been on a steady rise since mid-2022, and a decline, even if contained, should be welcomed by the ECB,” ING added. GBP/USD traded 0.1% higher at 1.2605, in quiet trading ahead of the release of the monthly surveys of business activity later this week. The PMI data is expected to show that British business activity is improving, led by a surge in service-sector activity to its fastest pace since last May. This follows Friday’s data which showed U.K. retail sales grew at their fastest pace in nearly three years in January. China cuts key rate, yen remains weak In Asia, USD/CNY traded largely unchanged at 7.1983, helped by a strong daily midpoint fix after the People’s Bank of China cut its benchmark five-year loan prime rate by a bigger-than-expected 25 basis points to 3.95%, a record low. The move provided little cheer to Asian markets as it also underscored increasing government anxiety over an economic slowdown in Asia's biggest economy. USD/JPY rose 0.1% to 150.31, with the yen weakening past the 150 level as the prospect of a slow exit from the Bank of Japan’s ultra-dovish monetary stance put pressure on the Japanese currency. Breaks above 150 have attracted government intervention in the past, with officials also offering verbal warnings on any such moves last week. https://www.investing.com/news/forex-news/dollar-drifts-lower-euro-edges-higher-ahead-of-key-wages-data-3307906

2024-02-20 04:51

Copyrighted Image by: Reuters. Investing.com-- Gold prices kept to a tight range in Asian trade on Tuesday amid persistent concerns over higher-for-longer interest rates, while a U.S. market holiday also made for scant immediate trading cues. The yellow metal had found some support at the $2,000 an ounce level, recovering sharply from a two-month low over the past two sessions. But the recovery still put gold comfortably within a $2,000-$2,050 trading range established through most of 2024. Spot gold prices rose 0.1% to $2,019.17 an ounce, while gold futures expiring in April steadied at $2,030.20 an ounce by 23:34 ET (04:34 GMT). While increased geopolitical ructions in the Middle East and between Russia and Ukraine offered gold some support in recent sessions, bigger gains in the yellow metal have been largely held back by the prospect of higher for longer U.S. interest rates. Traders began steadily pricing out chances of early interest rate cuts by the Fed after a series of hotter-than-expected U.S. inflation readings for January, while several Fed officials also warned against bets on early rate cuts. Higher rates bode poorly for non-yielding assets such as gold, given that they increase the opportunity cost of investing in the yellow metal. Still, analysts at Citi said gold could soar to $3,000 an ounce by 2025, especially if central banks increase their bullion purchases, inflation turns sluggish and if the global economy enters a deep recession in the coming year. But the near-term outlook for gold remained uncertain, while other precious metals also weakened. Platinum futures fell 0.4% to $903.10 an ounce, while silver futures fell 0.1% to $23.023 an ounce. Copper takes little cheer from China rate cut Among industrial metals, copper prices fell slightly on Tuesday, taking little support from a bigger-than-expected benchmark interest rate cut in top importer China. Copper futures expiring in March fell 0.1% to $3.8087 a pound. The People’s Bank of China cut its benchmark five-year loan prime rate by a bigger-than-expected 25 basis points to 3.95%, as it moved to further loosen monetary conditions and shore up an economic recovery. But investors doubted whether the move would substantially aid the Chinese economy, given that Chinese interest rates have been at record lows for nearly two years. Beyond fears of economic weakness in the world’s largest copper importer, the UK and Japan both entered a recession in late-2023, ramping up concerns over slowing global economic growth, which is likely to stymie copper demand. https://www.investing.com/news/commodities-news/gold-prices-tread-water-as-rate-cut-woes-persist-3307683

2024-02-20 04:21

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies crept lower on Tuesday amid persistent concerns over a slowing Chinese economic recovery and higher-for-longer U.S. interest rates, while the dollar edged up and remained near three-month highs. The People’s Bank of China cut its benchmark five-year loan prime rate by a bigger-than-expected 25 basis points to 3.95%, a record low. But the move provided little cheer to Asian markets, given that it also underscored increasing government anxiety over an economic slowdown in Asia's biggest economy. The yuan fell slightly after the move, although bigger losses in the currency were held back by a stronger-than-expected midpoint fix from the PBOC. Still, the yuan remained close to its weakest level in three months, and was also close to breaking above the 7.2 level to the dollar. Broader Asian currencies were still reeling from a string of stronger-than-expected U.S. inflation readings from last week, which put the dollar within sight of a three-month high. But the greenback saw few cues for movement from a U.S. holiday on Monday. The dollar index and dollar index futures both rose 0.1% each in Asian trade, buoyed by the prospect of higher-for-longer U.S. interest rates in 2024. The Japanese yen was among the worst-hit by recent fears of higher U.S. rates, with the currency weakening past the 150 level on Tuesday. The prospect of a slow exit from the Bank of Japan’s ultra-dovish monetary stance also put pressure on the yen. Still, the yen found some support around 150 as traders watched for any potential intervention in currency markets by the Japanese government. Breaks above 150 have attracted government intervention in the past, with officials also offering verbal warnings on any such moves last week. The Australian dollar fell 0.1%, even as the minutes of the Reserve Bank of Australia’s February meeting showed the bank still remained inclined towards hiking interest rates further to curb sticky inflation. But the RBA also said that it was prepared to loosen monetary conditions swiftly if the Australian economy cooled too quickly due to pressure from high rates. The RBA had kept rates steady at 4.35% earlier in February, but had struck an unexpectedly hawkish tone- which offered some support to the Aussie. Among other Asian currencies, the Singapore dollar fell 0.1%, while the South Korean won fell 0.3%. The Indian rupee firmed slightly below the 83 level, but still remained vulnerable. https://www.investing.com/news/forex-news/asia-fx-creeps-lower-dollar-firm-as-china-rate-cut-gives-little-support-3307660

2024-02-20 02:36

Copyrighted Image by: Reuters. Investing.com-- Oil prices settled lower Tuesday, as investors weighed worries about weaker demand against rising geopolitical conditions in the Middle East that threaten to potentially disrupt supplies. By 14:30 ET (19:30 GMT), the U.S. crude futures settled 1.3% lower at $78.18 a barrel and the Brent contract dropped 1.4% to $82.43 a barrel. Middle East tensions continue anew Middle East tensions escalated further following a fresh attack on a UK commercial vessel in the Red Sea and ongoing fighting between Israel and Hamas in the Gaza strip. The U.S. has called for a temporary ceasefire in the war, and has also said that it opposes a major ground offensive by its ally Israel in the city of Rafah. That said, Israel still appears set to march into Rafah, a move that would sharply worsen the humanitarian crisis in Gaza. Fears of increased supply disruptions have been the biggest driving force for oil prices in recent weeks, although prices are still trading well below highs hit in early-2022. Concerns over slowing demand also saw crude prices clock a 10% decline through 2023. China-led demand concerns continue Demand worries, led by softer economic growth in China, continued as the People's Bank of China unexpectedly cut its key five-year loan prime rate on Tuesday, though held its one-year medium-term lending facility, a key lending rate, steady at 2.5%. The move to stay pat on rates kept concerns about sluggish economic growth in China, the second largest consumer of crude oil just as other global economies are also showing signs of struggle as the UK and Japan slipped into recession in Q4. That said, prices remained underpinned by persistent concerns over supply disruptions in the Middle East, as the Yemeni Houthis continued to clash with U.S. forces, while the Israel-Hamas war raged on. https://www.investing.com/news/commodities-news/oil-prices-muted-as-markets-weigh-demand-fears-geopolitical-disruptions-3307651

2024-02-19 08:54

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar edged lower in early European trade Monday, handing back some of its recent gains in holiday-affected trade ahead of the release of the latest Fed minutes for clues of the outlook for U.S. interest rates. At 04:00 ET (09:00 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 104.067, remaining close to three-month highs. Dollar consolidates after recent gains The Presidents’ Day holiday in the U.S. has limited activity in the foreign exchange markets Monday, and traders have used the opportunity to back some recent dollar gains. The greenback registered gains last week, its fifth successive positive week, after data showed both U.S. producer prices and consumer prices increased more than expected in January, raising the prospects of the Federal Reserve pushing back the start of its rate-cutting cycle to the start of summer compared with March at the beginning of the year. The main focus this week will be on the minutes of the Fed meeting from last month, scheduled for Wednesday, while several Fed officials, including Christopher Waller and Raphael Bostic, are also due to speak this week. Euro edges higher; ECB wage data in focus In Europe, EUR/USD traded 0.1% higher at 1.0783, trading in a tight range as traders await Tuesday’s ECB survey of negotiated wage rates, and then the release of the flash PMIs for February on Thursday. The ECB's wage data will be of importance given how much policymakers have warned about high wage growth, even though it is a well known lagging indicator. “The issue will be how much, if at all, negotiated wages slowed from the prior survey of around 4.7% year-on-year,” said analysts at ING, in a note. “Here, a high figure could raise expectations that the broader wage release in late April will also come in on the high side and finally wipe out the chances (now priced at 36%) that the ECB will cut rates in April.” GBP/USD traded 0.2% higher at 1.2622, with sterling helped by the slight dollar weakness as well as the spillover from Friday’s data showing U.K. retail sales grew at their fastest pace in nearly three years in January. Yen remains close to key level In Asia, USD/JPY fell 0.2% to 149.94, flitting around the physiologically-important 150 level as traders remained wary of any potential government action in currency markets. The yen had tumbled to three-month lows over the past week amid growing conviction that the Bank of Japan will be slow in tightening its ultra-loose monetary policy. Pressure from the prospect of higher-for-longer U.S. interest rates also weighed. USD/CNY edged 0.1% higher to 7.1986, remaining in sight of a three-month low, although further losses were limited by a strong daily midpoint fix from the People’s Bank of China. The central bank is also widely expected to keep its benchmark loan prime rate unchanged on Tuesday, leaving the rate at record lows. https://www.investing.com/news/forex-news/dollar-edges-lower-consolidating-ahead-of-fed-minutes-3307344