2024-03-26 10:12

Copyrighted Image by: Reuters Investing.com - The U.S. dollar edged lower in European trade Tuesday, in limited volatility after the excitement of last week’s central bank meetings and ahead of the release of key inflation data later in the week. At 06:10 ET (10:10 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% lower at 103.760, suffering from a minor bout of profit-taking after hitting one-month last week. Dollar consolidates The greenback has seen some consolidation at the start of the week, trading in tight ranges amid a generalised calm after the central bank meetings last week and before the release of the Federal Reserve’s favorite inflation gauge this Friday. “We had deemed last week’s dollar rally as overdone given the relatively dovish Federal Reserve message, and we are not surprised to see the greenback decline at the start of this week,” said analysts at ING, in a note. There’s more economic data due for release Tuesday, including March’s consumer confidence data, February durable goods orders and the Richmond Fed’s manufacturing survey. However, the trading ranges are unlikely to expand significantly ahead of the release of the Fed’s preferred inflation measure, the core personal consumption expenditures price index, which is due for release when markets are closed for Good Friday. The Fed last week stuck with projections for three interest rate cuts this year, but added that it wanted more evidence inflation is slowing before easing. Sterling, euro recover slightly In Europe, EUR/USD rose 0.2% to 1.0854, helped by the minor dollar weakness, even as European Central Bank officials hinted at rate cuts, starting in the summer. German consumer sentiment is expected to stay on its path of slow recovery in April, as the consumer sentiment index published jointly by GfK and the Nuremberg Institute for Market Decisions rose slightly heading into April, to -27.4 from a revised -28.8 in March. “German consumer sentiment is expected to stay on its path of slow recovery in April, helped by fewer households seeing the need to save even as uncertainty about Germany's economic development still abounds, a survey showed on Tuesday. The consumer sentiment index published jointly by GfK and the Nuremberg Institute for Market Decisions rose slightly heading into April, to -27.4 from a revised -28.8 in March. “European Central Bank doves are continuing to reiterate the message that consensus within the Governing Council is shifting to imminent easing,” ING added. “For this week, EUR/USD should be able to prevent much more pressure on the 1.0800 support and stabilise around or modestly above 1.0850.” GBP/USD rose 0.2% to 1.2656, bouncing from last week's one-month low, after Bank of England Governor Andrew Bailey told the Financial Times that rate cuts "were in play" this year. Yen remains weak USD/JPY traded 0.1% lower at 151.29, with the pair remaining close to its highest level in four months. Recent weakness in the yen, which came despite the Bank of Japan’s first rate hike in 17 years, spurred warnings over potential intervention by the Japanese government. The warnings, particularly comments from top Japanese currency diplomat Masato Kanda, saw the yen stabilize. Focus was now on upcoming consumer inflation data from Tokyo, due later in the week. USD/CNY rose 0.1% to 7.2186, climbing to its highest level since mid-November and well above the psychologically important 7.2 level. Recent losses in the yuan were driven by worsening sentiment over a Chinese economic recovery, while the PBOC also flagged more potential interest rate cuts to provide stimulus. Both factors bode poorly for the yuan, which is one of the worst-performing Asian currencies over the past two years. https://www.investing.com/news/forex-news/dollar-slips-ahead-of-key-pce-release-euro-bounces-3352827

2024-03-26 05:27

Copyrighted Image by: Reuters Investing.com-- Bitcoin price rose on Tuesday, remaining above key levels and in sight of record highs amid anticipation of the upcoming halving event, although signs of capital outflows and sluggish on-chain activity suggested that the token’s stellar rally could be slowing. Bitcoin was trading up 4.5% in the past 24 hours at $70,548.1 by 01:03 ET (05:03 GMT). The world’s largest cryptocurrency was now about $3,000 away from a record high hit earlier in March. Relative strength in the dollar, ahead of more cues on U.S. inflation and the Federal Reserve, limited more gains in the token. But Bitcoin recovered sharply from lows of around $60,000 hit last week, largely on anticipation of the halving event, which will see new supply of the token slashed by 50%. The event is set to occur some time in April with the generation of the 740,000th block. Bitcoin price upbeat, but ETFs see record outflows Data from digital asset management firm CoinShares showed on Monday that digital asset investment products, such as exchange-traded funds, saw a record-high outflow of nearly $1 billion in the week to March 23. Of the outflows, a bulk were driven by traders pulling out of Grayscale products, specifically its Grayscale Bitcoin Trust (NYSE:GBTC) ETF. Overall capital outflows from Bitcoin also amounted to about $904 million. CoinShares said the outflows signaled some hesitancy among investors over further gains in crypto markets, which also saw inflows slow sharply from the prior week. Still, the outflows come after a stellar seven-week run of inflows, which were triggered largely by the U.S. approval of spot Bitcoin ETFs earlier in 2024. Bitcoin on-chain activity seen slowing On-chain data from Glassnode showed that activity in the Bitcoin blockchain had slowed drastically in recent months, even as the token scaled new price peaks. On-chain transactions were at a fraction of volumes seen during the 2021 bull run, Blockware Solutions analysts said in a recent note. This showed that major Bitcoin holders remained largely reluctant to trade their tokens. But the lack of volumes and liquidity signaled that a bulk of Bitcoin’s recent price move was being driven by price speculation outside the blockchain- a trend that could herald more volatility in the coming weeks, especially if capital flows slow. Bitcoin’s volatility has remained a main point of contention for potential investors, given that the token lost record highs just as quickly as it attained them. https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-steady-above-70k-but-etf-flows-onchain-activity-slow-3352607

2024-03-26 04:47

Copyrighted Image by: Reuters. Investing.com-- Gold prices fell slightly in Asian trade on Tuesday as anticipation of key signals on U.S. inflation and the Federal Reserve dissuaded big trades, while recent strength in the dollar also weighed. Among industrial metals, copper prices saw sharp declines since Monday as traders locked-in profits from a rush to 11-month highs last week. Weakening sentiment towards top importer China also weighed. Gold slid from record highs last week after dovish signals from major central banks saw traders rush en masse into the dollar, pushing the dollar index to a one-month high. While the greenback did see some profit-taking this week, it still remained relatively strong. Spot gold steadied at $2,171.90 an ounce, while gold futures expiring in April fell 0.2% to $2,172.45 an ounce by 00:25 ET (04:25 GMT). Gold prices muted with PCE inflation, Fed comments on tap Gold tread water in anticipation of PCE price index data- the Fed’s preferred inflation gauge- due this Friday. The reading is widely expected to factor into the Fed’s outlook on interest rates. Gold is expected to face some resistance in the near-term, especially if sticky inflation figures point to potential delays in the Fed’s plan to cut interest rates this year. The central bank had last week signaled that it planned to trim rates by 75 basis points in 2024, although this remained contingent on inflation. Comments from top Fed officials- including Chair Jerome Powell and FOMC member Mary Daly- are also due later this week. Any signals on higher-for-longer interest rates are likely to weigh on metal markets. Other precious metals lost ground on Tuesday. Platinum futures fell 0.2% to $914.60 an ounce, while silver futures fell 0.4% to $24.802 an ounce. Copper prices slide from 11-mth highs as China sentiment sours Three-month copper futures on the London Metal Exchange fell 0.3% to $8,839.00 a ton, while one-month U.S. copper futures fell 0.4% to $3.9947 a pound. Both contracts were trading well off 11-month highs hit last week, as recent Chinese inventory data showed copper stockpiles in the world’s largest importer remained flush. The data largely offset positive signals from top Chinese copper refiners, specifically that they intended to curb production and tighten global supplies. Broader sentiment towards China also worsened amid growing investor impatience over more stimulus measures from Beijing, as the country’s economy showed little signs of improvement. https://www.investing.com/news/commodities-news/gold-prices-muted-amid-scant-trading-cues-copper-reverses-course-3352603

2024-03-26 03:37

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies tread water on Tuesday, taking little cheer from a softer dollar as traders remained cautious ahead of more cues on U.S. inflation and the Federal Reserve this week. Particular focus was on the Chinese yuan, which hovered near its weakest level in four months after a bruising sell-off last week. Measures by the People’s Bank of China so far appeared to be providing little support to the currency. Chinese yuan (USDCNY) breaks past 7.2, intervention in focus The Chinese yuan weakened on Tuesday, with the USDCNY pair rising 0.1% to 7.2178- its highest level since mid-November. The offshore yuan's USDCNH pair fell 0.1% but remained well above the psychologically important 7.2 level. Weakness in the yuan came even as the PBOC set a stronger-than-expected midpoint, and was seen instructing local banks to buy yuan and sell dollars on the open market. Recent losses in the yuan were driven by worsening sentiment over a Chinese economic recovery, while the PBOC also flagged more potential interest rate cuts to provide stimulus. Both factors bode poorly for the yuan, which is one of the worst-performing Asian currencies over the past two years. But sustained weakness in the yuan could potentially attract more aggressive intervention by the PBOC, given Beijing's growing discomfort with weakness in the yuan. Japanese yen steadies after govt warnings The Japanese yen steadied on Tuesday, with the USDJPY pair hovering around 151.36. The pair remained close to its highest level in four months. Recent weakness in the yen, which came despite the Bank of Japan’s first rate hike in 17 years, spurred warnings over potential intervention by the Japanese government. The warnings, particularly comments from top Japanese currency diplomat Masato Kanda, saw the yen stabilize. Focus was now on upcoming consumer inflation data from Tokyo, due later in the week. Broader Asian currencies moved in a flat-to-low range, amid few immediate cues. The Australian dollar’s AUDUSD pair rose 0.1%, while the South Korean won’s USDKRW rose 0.1%. The Singapore dollar’s USDSGD fell 0.1%, while the Indian rupee’s USDINR stabilized after shooting up to record highs earlier in March. Dollar steadies with PCE inflation, Fed comments in focus The dollar index and dollar index futures fell in Asian trade on Tuesday, extending overnight losses as the greenback saw some profit-taking after a melt-up to one-month highs. Still, traders remained heavily biased towards the dollar ahead of key inflation and Federal Reserve signals this week. PCE price index data- the Fed’s preferred inflation gauge- is due on Friday, and is widely expected to factor into the central bank’s outlook on interest rates. Along with the PCE data, addresses by key Fed officials, including Chair Jerome Powell and FOMC member Mary Daly are also on tap this week. https://www.investing.com/news/forex-news/asia-fx-muted-with-more-inflation-fed-cues-on-tap-yuan-fragile-3352562

2024-03-26 01:40

Copyrighted Image by: Reuters. Investing.com-- Oil prices rose slightly in Asian trade on Tuesday as expectations of tighter supplies were boosted by more output curbs in Russia, although the United Nations’ adoption of an Israel-Hamas ceasefire put a lid on gains. A tight outlook for crude supplies put oil prices close to four-month highs hit earlier in March. But the prospect of fewer geopolitical disruptions in the Middle East limited any more upside in oil markets. Brent oil futures expiring in May rose 0.2% to $86.88 a barrel, while West Texas Intermediate crude futures rose 0.2% to $82.13 a barrel by 21:07 ET (01:07 GMT). Oil prices also benefited from some weakness in the dollar, as the greenback consolidated ahead of more cues on inflation and interest rates later this week. UN passes Gaza ceasefire regulation The UN Security Council on Monday voted in favor of a resolution calling for an immediate ceasefire between Israel and Hamas in the Gaza strip, at least for the holy Muslim month of Ramadan. The U.S. abstained from voting. But whether the resolution could result in an actual ceasefire being enforced still remained to be seen. Israel criticized the move. The prospect of an Israel-Hamas ceasefire had weighed on oil prices in recent sessions, given that stability in the Middle East presents fewer disruptions in oil production and shipping activity. Russia supply disruptions boost oil prices, OPEC+ sees no change in policy Production cuts in Russia were a key point of support for oil, helping limit any losses in recent sessions after a series of debilitating Ukrainian strikes on key Russian fuel refineries. The strikes heralded weaker fuel supplies in the coming months. Russia also reportedly ordered local oil companies to further cut production in order to comply with lower production targets set by the Organization of Petroleum Exporting Countries and allies (OPEC+) until end-June. Other reports showed that OPEC+ members saw no need for further reductions in supply, and that curbs which were in place until end-June were sufficiently tightening global oil markets. https://www.investing.com/news/commodities-news/oil-prices-buoyed-by-tight-supply-bets-gaza-ceasefire-in-focus-3352537

2024-03-25 23:59

Copyrighted Image by: Reuters Investing.com-- The U.S. Securities and Exchange Commission is seeking fines of about $2 billion from Ripple Labs over its allegedly unlawful sales of the cryptocurrency XRP, the firm’s chief legal officer said on Monday. Stuart Alderoty, chief legal officer at Ripple, said in a series of social media posts that the SEC had asked District Judge Analisa Torres in Manhattan for the fines in confidential court papers filed on Monday. The commission is scheduled to file the documents publicly on Tuesday, with redactions. XRP curbed a bulk of its intraday gains after the news, and was last trading up 1.3% at $0.64079. The payout, if passed, could be potentially one of the biggest fines slapped against a crypto firm. It comes after Torres ruled in July that Ripple Labs’ sales of XRP worth nearly $730 million to hedge funds and sophisticated investors were unlawful sales of unregistered securities. Ripple is set to appeal the decision in April. The SEC has been engaged in a legal battle with Ripple since 2020, when the regulator sued CEO Brad Garlinghouse and co-founder Chris Larsen over allegations of raising more than $1.3 billion in illegal sales of unregistered securities. Torres had ruled that Ripple’s sales of XRP on public exchanges did not amount to sales of unregistered securities. The SEC-Ripple case is a key point of focus for the crypto industry, given that its overall outcome could potentially dictate the nature of crypto tokens and their regulation. The SEC has long argued that crypto tokens are securities and should be governed under securities law. But crypto proponents have argued that securities laws are incapable of addressing digital assets, and have called for new, dedicated regulation. Some proponents have also argued that cryptocurrencies are digital commodities and as such, should be governed by the Commodity Futures Trading Commission. https://www.investing.com/news/cryptocurrency-news/sec-seeks-2-bln-from-ripple-labs-over-xrp-sales-legal-officer-says-3352476