2024-01-18 05:22

Copyrighted Image by: Reuters Investing.com-- Gold prices rose slightly on Thursday, steadying from a sharp tumble this week as strong U.S. data spurred increasing doubts over early interest rate cuts by the Federal Reserve. The yellow metal wiped out most gains made through December, and came close to breaking below the coveted $2,000 an ounce level as the dollar and Treasury yields rebounded this week. Increased military action in the Middle East also did little to spur safe haven demand for gold, with traders instead pivoting into the dollar on the prospect of higher-for-longer U.S. rates. Still, gold prices found some support around the $2,000 an ounce level, and saw a mild recovery on Thursday. Spot gold rose 0.1% to $2,008.89 an ounce, while gold futures expiring in February rose 0.2% t o$2,010.40 an ounce by 23:56 ET (04:56 GMT). Both instruments were trading down nearly 2% each for this week. March rate-cut bets recede after strong retail sales data The dollar shot up to a one-month highs, while Treasury yields saw extended gains after retail sales data for December read stronger than expected. The data lent further credence to recent comments from Fed officials that resilience in the U.S. economy will see the central bank keep rates higher for longer. This notion saw traders further scale back bets that the bank will begin trimming interest rates by as soon as March 2024, according to the CME Fedwatch tool. Traders are pricing in a 59.8% chance of a 25 basis point cut in March, down from 67.3% seen last week. Higher rates dent the appeal of gold by pushing up the opportunity cost of investing in the yellow metal. While gold had seen some relief in December, briefly hitting record highs amid bets on early interest rate cuts, the outlook for the yellow metal now turns uncertain in the face of higher-for-longer rates. Copper prices at 1-mth low as China sentiment worsens Among industrial metals, copper price steadied on Thursday after logging sharp losses this week, amid worsening sentiment towards China and pressure from the dollar. Copper futures expiring in March fell 0.1% to $3.7395 a pound, and were trading close to their weakest levels since early-December. The red metal clocked heavy losses after top importer China posted weaker-than-expected GDP figures for the fourth quarter, spurring increased concerns that softening economic conditions in the country will dent its appetite for copper. The outlook for copper was also dulled by weaker forecasts for electric vehicle sales this year. Increased EV demand was initially pegged to be a key driver of copper prices in the coming years. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVSPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/commodities-news/gold-prices-see-support-at-2000-as-march-cut-doubts-spark-steep-losses-3276855

2024-01-18 04:13

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies moved little on Thursday after clocking steep losses in the prior session, while the dollar fell slightly from a one-month high as strong U.S. retail sales data spurred more doubts over early rate cuts by the Federal Reserve. Sentiment towards Asian markets remained weak following softer-than-expected Chinese gross domestic product data, which showed the region’s largest economy struggling with a sluggish post-COVID recovery. The Chinese yuan was flat after sinking to its lowest level in nearly two months. But further losses in the currency were limited by a stronger-than-expected midpoint fix by the People’s Bank of China. Still, the outlook for the yuan remained dour, as the PBOC grappled with sluggish growth and limited headroom to keep supporting the currency. Concerns over China weighed on most Asian currencies, given the country’s dominance as a trading hub for the region. The Australian dollar rose 0.3% on Thursday after sinking to an over one-month low in the prior session. Labor data showed Australian employment unexpectedly fell in December, although the broader labor market still remained relatively tight. The Singapore dollar- which also has major trade exposure to China- rose slightly after hitting a two-month low on Wednesday, while the Taiwan dollar steadied near a two-month low. The Japanese yen steadied at a 1-½ month low ahead of key consumer price index (CPI) data due on Friday, which is expected to show a sustained decline in inflation. The reading is expected to provide the Bank of Japan with little impetus to begin tightening its ultra-loose policy, which bodes poorly for the yen. The yen was among the worst-performing Asian currencies in 2023, with a widening gulf between U.S. and Japanese interest rates acting as a key point of pressure. This trend is now likely to continue in the near-term, as traders further trimmed expectations for early interest rate cuts by the Fed. The South Korean won rose 0.1% from a 2-1/2 month low, while the Indian rupee hovered near record lows. Dollar steadies near one-month high as early rate cut bets wane The dollar index and dollar index futures fell between 0.1% and 0.2% in Asian trade, after clocking a strong rebound earlier this week. Retail sales data for December read stronger than expected, giving further credence to recent comments from Fed officials that the bank will keep rates higher for longer. The retail sales data came after stronger CPI inflation and nonfarm payrolls readings for December. Strength in the U.S. economy gives the Fed more headroom to keep rates higher for longer. The data also saw traders further scale back bets on a March rate cut by the Fed, according to the CME Fedwatch tool. Traders are now pricing in a 61.8% chance for a 25 basis point cut in March, down from a 67.3% chance seen a week ago. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVSPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/forex-news/asia-fx-muted-dollar-near-1mth-high-amid-doubts-over-early-rate-cuts-3276838

2024-01-18 01:40

Copyrighted Image by: Reuters. Investing.com -- Oil prices settled higher Thursday, as larger-than-expected draw in U.S. crude supplies and easing worries about the demand outlook helped spur bullish bets. By 14:30 ET (19.30 GMT), the U.S. crude futures traded 2.1% higher at $74.08 a barrel and the Brent contract rose 1.5% to $79.03 a barrel. Crude inventories in downward surprise, but gasoline, distillates stockpiles jump Inventories of U.S. crude fell by roughly 2.5M barrels in the week ended Jan.12, exceeding expectations of a draw of 331,000 barrels. Gasoline inventories, one of the products that crude is refined into, rose by roughly 3.1M barrels against expectations for an increase of about 2.2M barrels while distillate stockpiles rose by by about 2.4M barrels, compared to expectations of a rise of 880,000 barrels. IEA predicts demand growth in 2024 The International Energy Agency stated in its monthly report that it now expects oil demand to grow by 1.24 million barrels per day in 2024, up 180,000 bpd from its previous projection. The agency cited improved economic growth and lower crude prices in the fourth quarter. This followed an even more bullish report from the Organisation of Petroleum Exporting Countries, released on Wednesday. The cartel stuck to its forecast for demand growth of 2.25 million barrels per day for 2024. At the same time, extreme winter conditions in parts of the U.S. are set to hit production. The oil producing state of North Dakota said on Wednesday that severely cold weather would see output fall by over 50% - a trend that is likely to dent overall U.S. production, which hit record highs over the past two months. The more sanguine outlook helped eased worries that a weakening global economy would dent demand at a time when ongoing Middle East conflict continued to threaten supplies. Military action continues in Middle East Traders continue to monitor the military action in the Middle East, and the prospect of supply disruptions from the oil-rich region. Attacks by Yemen-based Houthi militants against ships in the Red Sea have forced many companies to divert cargoes around Africa, adding to journey times and costs. https://www.investing.com/news/commodities-news/oil-prices-edge-higher-amid-mixed-us-cues-red-sea-strikes-continue-3276785

2024-01-17 23:28

Copyrighted Image by: Reuters. By Ketki Saxena Investing.com -- The Canadian Dollar continued to weaken against its US counterpart today, rising treasury yields, rising risk aversion, and hotter-than-expected retail sales boosted the safe-haven greenback. However, the Canadian dollar continued to see some gains against most major currencies, even as a dip in crude and metal prices following weak Chinese data pressured the commodity-linked loonie. Low-impact inflation data from Canada also helped assuage some fears after yesterday’s hotter-than-expected core Canadian CPI read. Canada’s Raw Material Price Index fell 4.9% in December, well below the forecast for a 1.6% decline. Canadian Industrial Product Prices also declined in December, falling 1.5% vs. the forecast of -0.7%. US data meanwhile came in hotter than expected, with retail sales up 0.6% in December, vs market forecasts for a 0.4% gain. With the US domestic economy showing repeated signs of strength, traders have been paring back bets for early rate cuts from the Fed, boosting the US Dollar across the board. Analysts at Scotiabank (TSX:BNS) believe that “If markets continue to reprice March Fed risks, the USD is likely to remain well-supported.” ING analysts concur that “Incoming US data should continue to be a key driver for CAD in the crosses, given its high correlation with US economic sentiment.” Up next for the USDCAD pair, all eyes will be on the Bank of Canada’s meeting next week. Analysts at ING note that the “residual resilience in US data may be offset by a more dovish BoC… we see a high chance that it will follow the Fed in signaling rate cuts by year-end, thus dropping its tightening bias.” However, they “Remain unexcited about CAD’s prospects”. On a technical level for the pair, Scotiabank analysts note that "Solidly bullish intraday and daily trend strength signals suggest the USD rebound, signaled by bullish price action around the turn of the year, has further to run still” “Above 1.3540/1.3550, USD gains are liable to run on to the low/mid-1.36 range." https://www.investing.com/news/forex-news/scotiabank-ing-bearish-on-loonie-as-canadian-dollar-loses-further-ground-vs-usd-3276759

2024-01-17 23:03

Copyrighted Image by: Reuters WASHINGTON - In a series of security breaches, prominent cryptocurrency-related social media accounts have been compromised, leading to the spread of false information and causing disturbances in the market. On today, Rocket Pool (NASDAQ:POOL) X's social media channels fell victim to a cyber attack, where false claims about asset transfers were made, citing non-existent vulnerabilities in smart contracts. In a separate incident, the U.S. Securities and Exchange Commission's (SEC) Twitter account was also hacked today. The attackers posted incorrect announcements regarding the approval of a Bitcoin ETF, which briefly stirred the market before the misinformation was corrected. Adding to the wave of cyber threats, the Twitter account of Ethereum co-founder Vitalik Buterin was hacked today. The security breach was used to promote a phishing link, disguised as an Ethereum update, potentially putting followers at risk of financial loss. These security lapses have raised concerns over the vulnerability of social media accounts associated with cryptocurrencies. The SEC's incident, in particular, highlighted the lack of two-factor authentication, a basic security measure, on their Twitter account. https://www.investing.com/news/cryptocurrency-news/crypto-social-media-accounts-hacked-spreading-misinformation-93CH-3276750

2024-01-17 22:50

Copyrighted Image by: Reuters NEW YORK - Cryptocurrency trading firm QCP Capital has projected that Ethereum (ETH) may outshine Bitcoin (BTC) in the medium term. This outlook is based on market anticipation of a U.S.-approved Ethereum spot Exchange-Traded Fund (ETF), a development that could follow the recent approval of a Bitcoin spot ETF. The trading pair "ETH/BTC" has experienced significant volatility, recently reaching a peak surpassing 0.06 BTC. QCP Capital suggests that Ethereum's value could see a substantial increase, potentially bringing its market capitalization near the $750 billion mark, if it emulates Bitcoin's valuation trajectory after the latter received ETF approval. The growing interest from institutional investors in cryptocurrencies is underscored by major investments from entities such as ARK Invest. Additionally, the financial giant BlackRock (NYSE:BLK) has submitted applications for an Ethereum spot ETF, indicating a broader acceptance of digital assets among traditional investment firms. While the prospects for Ethereum appear promising, the Securities and Exchange Commission (SEC) may not make a decision on an Ethereum ETF until after the U.S. presidential election in November. https://www.investing.com/news/cryptocurrency-news/ethereum-forecast-to-outperform-bitcoin-with-potential-etf-approval-93CH-3276745