2024-01-16 01:13

Copyrighted Image by: Reuters. Investing.com -- Oil prices settled lower in a volatile trading session on Tuesday as investors weighed ongoing Middle East that threaten supplies through the key Red Sea region and a stronger dollar amid easing expectations for sooner rather than later rate cut. At 14:30 ET (19:30 GMT), the U.S. crude futures settled 0.4% lower at $72.40 a barrel and the Brent contract fell 0.3% to $77.95 a barrel. Middle East tensions keep supply fears elevated Tensions remain elevated in the Middle East in the wake of the strikes by the United States and Britain against the Houthi group in Yemen, in retaliation for attacks by the Iran-backed group on shipping in the Red Sea. Fearing a step in attacks from the Houthi group in the Red Sea, Shell (LON:SHEL) suspended all shipments through the Red Sea indefinitely, the Wall Street Journal reported. Additionally, Iran said on Tuesday it had launched ballistic missiles at targets in Iraq and Syria in defence of its sovereignty and to counter terrorism. This followed Tehran seizing a tanker with Iraqi crude destined for Turkey on Thursday. More oil tankers are now shunning the southern Red Sea, taking a longer (and more expensive) route to Asia which is indirectly tightening the market by forcing up oil stocks on water by 35 million barrels, according to Citi analysts. Dollar strength pegs back oil The dollar stages its biggest rally since March to keep a lid on prices as Treasury yields jumped after Federal Reserve Governor Christopher Waller said there was no need for the central bank to cut rates quickly as the economy remains in good shape. "In many previous cycles [...] the FOMC cut rates reactively and did so quickly and often by large amounts," Waller said Tuesday. "[H]owever, with economic activity and labor markets in good shape and inflation coming down gradually to 2 percent, I see no reason to move as quickly or cut as rapidly as in the past," he added. A stronger dollar makes oil, priced in the U.S. dollars, more expensive for foreign buyers. That weighs on demand, which is already under pressure amid concerns about a slowdown in the global economy. Wavering global demand limits upside Crude demand concerns remained in focus amid growing fears that global economic conditions will deteriorate further this year. The German economy is likely to grow by only 0.3% in 2024, said the country’s BDI industry association, suggesting the eurozone as a whole, a key consumer of energy, will barely register growth this year. "The economy is at a standstill in Germany. Compared to most other major industrialised countries, our country is falling further behind," said BDI president Siegfried Russwurm. "We don't see any chance of a rapid recovery in 2024." Wednesday sees the release of Chinese fourth-quarter gross domestic product data, with traders looking to see whether the world’s largest oil importer will match the government’s 5% annual growth target. Additionally, retail sales and industrial production data for December are also due in the U.S. on Wednesday. https://www.investing.com/news/commodities-news/oil-prices-tread-water-in-anticipation-of-middle-east-cues-economic-data-3274531

2024-01-15 09:34

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar traded in a muted fashion in early European trade Monday, with a U.S. holiday limiting activity as traders consider the chances of early rate cuts by the Federal Reserve. At 04:35 ET (09:35 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 102.242, at the start of the Martin Luther King Jr. Day holiday. Dollar faces quiet week U.S. producer prices unexpectedly fell in December, according to data released Friday, prompting traders to increase their bets that the Federal Reserve will start cutting interest rates early this year. Market pricing now points to a 78% chance that the U.S. central bank will begin easing rates in March, as compared to a 68% chance a week ago, according to the CME FedWatch tool. The U.S. data calendar is pretty quiet this week, with the main focus being Wednesday’s retail sales. This will be closely watched for indications that consumer spending - a major driver of economic growth - is remaining resilient in the face of elevated interest rates. Retail sales are expected to have risen 0.4% in December, after a 0.3% increase in November. “We suspect that the data may prove insufficient to trigger a USD rebound for now; the consensus view of a dollar decline later this year seems to be making investors keen to sell dollar rallies,” said analysts at ING, in a note. Investors will also have the chance to hear from several Fed officials including Fed Governor Christoper Waller as well as Atlanta Fed President Raphael Bostic and San Francisco Fed head Mary Daly. Euro edges higher despite German GDP contraction In Europe, EUR/USD edged higher to 1.0953, despite data showing the German economy, the largest in the eurozone, contracted by 0.3% in the final quarter of last year and shrank by the same amount over the full-year 2023. "Overall economic development faltered in Germany in 2023 in an environment that continues to be marked by multiple crises", said Ruth Brand, president of the Federal Statistics Office earlier Monday. Still, despite this weakness, recent inflation data broadly confirmed current thinking at the European Central Bank, meaning interest rate cuts are not a near-term topic of debate, chief ECB economist Philip Lane said on Friday. Eurozone inflation rose to 2.9% in December, from 2.4% in November. GBP/USD fell 0.1% to 1.2738 ahead of a busy week for U.K. economic data, including unemployment numbers on Tuesday, CPI on Wednesday and retail sales on Friday. “Services inflation is what matters the most for the Bank of England at the current stage and we expect to see it at 6.1% this week, considerably below the Bank of England's estimates. Despite the improvement in services disinflation, 6%+ remains too high and is unlikely to make the BoE endorse dovish rate expectations just yet,” added ING. Yuan slips slightly after PBOC stays on hold In Asia, USD/CNY rose 0.1% to 7.1735, with the yuan retreating after the People’s Bank of China unexpectedly kept medium-term lending rates unchanged, suggesting the PBOC has limited headroom to loosen monetary policy further and support the Chinese economy. Fourth-quarter gross domestic product data, due on Wednesday, is expected to show that the Chinese economy grew more than the government’s 5% target for 2023. But the growth also comes from a low base for comparison from 2022. USD/JPY traded 0.4% higher to 145.51, with the yen suffering from persistent bets that the Bank of Japan will largely maintain its ultra-dovish policy when it meets later this month. Japanese consumer price index data, due later this week, is expected to show a sustained decline in inflation. https://www.investing.com/news/forex-news/dollar-muted-in-thin-trading-retail-sales-to-drive-rate-cut-expectations-3274314

2024-01-15 08:39

Copyrighted Image by: Reuters MUMBAI - Following the delisting of major cryptocurrency exchange applications, including Binance and OKX, from Apple (NASDAQ:AAPL)'s App Store and Google (NASDAQ:GOOGL)'s Play Store in India, Binance has moved to reassure its Indian user base about the security and continuity of their funds. The apps were removed as a part of India's enforcement of the Financial Intelligence Unit (FIU) compliance requirements under the Prevention of Money Laundering Act (PMLA). Despite the recent app removals, Binance confirmed that existing installations of their app would remain operational for users in India. The company has also indicated that they are in active discussions with regulatory bodies to align with local laws and address compliance issues. The backdrop to these developments is India's stringent regulatory environment for cryptocurrencies. The country has imposed a 30% tax on crypto transactions and a 1% tax deducted at source (TDS) on transactions that exceed INR 10,000. These measures have contributed to a significant reduction in the volume of local cryptocurrency trading. Binance, which received compliance notices from the FIU in December 2023, is among the crypto service providers navigating these regulatory challenges. The exchange's proactive communication aims to mitigate concerns among its users and work towards resolving the compliance matters with Indian authorities. https://www.investing.com/news/cryptocurrency-news/binance-assures-indian-customers-amid-app-store-removals-93CH-3274272

2024-01-15 05:47

Copyrighted Image by: Reuters. Investing.com-- Gold prices rose in Asian trade on Monday, recouping most of their new year’s losses as persistent tensions in the Middle East drove safe-haven demand, while traders still held out for early interest rate cuts by the Federal Reserve. The yellow metal saw increased demand as a conflict between the U.S. and the Iran-aligned Houthi group escalated over the past week, marking a potential spillover in the Israel-Hamas war. Mixed U.S. inflation readings also saw traders largely maintain their bets that the Fed could begin cutting interest rates by as soon as March 2024, which kept the dollar subdued and spurred some flows into rate-sensitive assets. Spot gold rose 0.2% to $2,053.88 an ounce, while gold futures expiring in February rose 0.3% to $2,057.85 an ounce by 00:27 ET (05:27 GMT). More Fed cues on tap this week, traders maintain March cut bets Traders appeared to have largely maintained their expectations that the Fed will cut rates by 25 basis points in March, at least according to the CME Fedwatch tool. The tool showed traders pricing in a 70% chance of a March cut, up from a 64% chance seen last week. Mixed inflation data furthered this notion. While consumer price index inflation grew slightly more than expected in December, producer price index inflation fell more than expected. Focus was now on a slew of addresses from Fed officials this week, which are expected to offer more cues on the bank’s outlook. But several of Fed officials have downplayed hopes on early rate cuts. Uncertainty over the path of U.S. interest rates is likely to keep gold trading rangebound in the near-term. But the yellow metal stands to benefit from any decreases in lending rates this year. Copper prices rebound but China rate fake-out dents outlook Among industrial metals, copper prices rose sharply on Monday following a weak start to the new year, although negative signals from China dampened the outlook for the red metal. Copper futures expiring in March rose 0.8% to $3.7648 a pound. China’s central bank unexpectedly kept its medium-term lending rates on hold on Monday, indicating that the world’s largest copper importer had limited headroom to further loosen monetary conditions and support a fragile economic recovery. Monday’s move also points to no changes in China’s benchmark loan prime rate, heralding limited levels of monetary stimulus for the economy, which have so far done little to shore up growth. Chinese trade data on Friday also showed a drop in copper imports in December, amid high inventory and increased domestic output. 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-cross-2050-amid-safehaven-demand-ratecut-hopes-3274200

2024-01-15 04:52

Copyrighted Image by: Reuters Investing.com-- Most Asian currencies moved little, while the dollar ticked lower on Monday as focus turned to a string of upcoming economic readings and Federal Reserve comments for cues on when the bank could begin trimming interest rates. Regional markets were also pressured by weak risk appetite, as focus remained on any signs of escalation in the Middle East conflict. The Japanese yen fell 0.2%, amid persistent bets that the Bank of Japan will largely maintain its ultra-dovish policy when it meets later this month. Japanese consumer price index (CPI) data, due later this week, is expected to show a sustained decline in inflation. Chinese yuan static after rate-cut disappointment, GDP awaited The Chinese yuan moved little on Monday, seeing resilience after the People’s Bank of China unexpectedly kept medium-term lending rates unchanged. The move heralds no changes to the PBOC’s benchmark loan prime rate later in January, offering some strength to the yuan. But no rate cuts also indicate the PBOC has limited headroom to loosen monetary policy further and support the Chinese economy. Fourth-quarter gross domestic product data, due on Wednesday, is expected to show that the Chinese economy grew more than the government’s 5% target for 2023. But the growth also comes from a low base for comparison from 2022. Concerns over a slowing post-COVID economic recovery in China weighed on the yuan through the past year, with the currency ranking among the worst-performing Asian units in 2023. Broader Asian currencies moved in a flat-to-low range, as markets sought more cues on the path of U.S. monetary policy. The Australian dollar rose 0.1%, while the South Korean won fell 0.6%. The Taiwan dollar was static after the incumbent Democratic Progressive Party (DPP) won the presidential elections over the weekend, securing a third consecutive term in power. But the result also drew ire from China, given that the DPP has constantly voiced support for Taiwan's independence. The Indian rupee steadied after recovering from near record lows last week. Indian wholesale price index inflation data is due later on Monday, coming after data on Friday showed a smaller-than-expected increase in CPI inflation. Dollar inches lower with more Fed cues due this week The dollar index and dollar index futures both fell about 0.1% in Asian trade on Monday, as markets appeared to have largely maintained their expectations of early interest rate cuts by the Federal Reserve. The CME Fedwatch tool showed traders pricing in a 70% chance for a 25 basis point cut in March, up from the 64% chance seen a week ago. Bets on early rate cuts were reinforced by data on Friday, which showed producer price index inflation fell more than expected in December. But the report was preceded by data showing a bigger-than-expected rise in CPI inflation in the month. Focus was now on addresses from a string of Fed officials this week, which are expected to provide more cues on the bank’s plans to cut interest rates this year. U.S. retail sales data is also due later this week, and is expected to factor into the country’s inflation outlook. 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-ticks-lower-ahead-of-more-ratecut-cues-3274192

2024-01-15 02:30

Copyrighted Image by: Reuters. NEW YORK - Bitcoin's value has experienced a notable decline, dropping to $42,239 today. The downturn marks a continuation of a four-day slide that began after the launch of U.S.-based exchange-traded funds (ETFs) by prominent financial institutions. Notably, BlackRock Inc (NYSE:BLK). and Fidelity Investments introduced their ETFs on January 11, which initially had a positive impact on Bitcoin's price, driving it above $49,000. The recent ETFs, including those from BlackRock and Fidelity, have attracted significant investor interest. Updates from social media platforms reveal that there has been over $819 million poured into these funds shortly after their introduction. This influx of investments indicates a strong market appetite for cryptocurrency-related financial products, even as the direct impact on Bitcoin's price appears to be complex. The introduction of these ETFs represents a significant milestone for the cryptocurrency market, as it signals increasing interest and acceptance from traditional financial institutions. However, the current market dynamics also highlight the volatile nature of digital currencies and the influence of new investment vehicles on their valuations. Investors and market watchers will likely continue to monitor the performance of these new ETFs closely, as well as their long-term effect on the stability and growth of Bitcoin and the broader cryptocurrency market. https://www.investing.com/news/cryptocurrency-news/bitcoin-value-dips-amid-etf-launch-and-market-sentiment-shift-93CH-3274185