Asia FX firms, yen strong as dollar retreats on bets of bigger rate cut
-- Asian currencies firmed on Tuesday, with the Japanese yen close to a 2024 peak as the dollar retreated on growing bets the Federal Reserve will cut interest rates...
-- Asian currencies firmed on Tuesday, with the Japanese yen close to a 2024 peak as the dollar retreated on growing bets the Federal Reserve will cut interest rates...
According to Cointelegraph, a blockchain-based ledger for payments and settlements could significantly benefit the United Kingdom’s finance industry, which processes $14.5 trillion worth of payments annually, as stated by the country’s finance trade body, UK Finance.On September 17, UK Finance shared insights following the conclusion of a successful experimental phase of the Regulated Liability Network (RLN), a blockchain-based ledger designed for central bank digital currencies (CBDC) and tokenized assets. The RLN aims to support innovation and introduce new financial functions such as programmable payments. The experimentation phase involved collaboration with 11 banks.UK Finance emphasized the need for further engagement with regulators and other public bodies to develop the RLN, highlighting its potential to reduce fraud and lower the cost of failed payments. The organization noted that the UK’s legal and regulatory framework is sufficiently flexible to support this innovative platform but requires further implementation and regulatory engagement.Jana Mackintosh, UK Finance’s managing director of payments, stated that the private sector is eager to invest in the future of commercial bank money and that a partnership with regulators is crucial for success. The RLN utilizes distributed ledger technology (DLT) and is primarily intended for use by commercial banks to manage the $14.52 trillion (11 trillion British pounds) worth of payments processed annually in the UK.The ledger can accommodate wholesale CBDCs, commercial bank money, and electronic money, allowing entities with access to record, transfer, and settle funds. It also enables the tokenization and programming of payments and settlements, as well as the locking and unlocking of funds.One of the key findings from the experiments was that the RLN could provide new firms with a common point of access, enabling them to interface with established institutions and enhanced payment and settlement systems. UK Finance also claimed that the platform could help achieve objectives set out by a July Bank of England discussion paper, which include maintaining the singleness of money and promoting sustained innovation.The trade group initiated the experiments in April, collaborating with banks such as Barclays, Citi, HSBC, Lloyds, Mastercard, NatWest, Nationwide, Santander, Standard Chartered, Virgin Money, and Visa.
According to Odaily, the Qatar Financial Centre (QFC) has announced the launch of a Digital Asset Lab. This initiative aims to foster innovation in the digital asset space by providing a platform for the development, testing, and commercialization of new digital solutions and services. The lab features a team of 24 participants, including notable entities such as ALT Realtech, Bladelabs, Polygon, and Partior.The Digital Asset Lab is designed to support participants comprehensively, offering resources and guidance to help them bring their innovative ideas to market. This move is part of QFC's broader strategy to position itself as a leading hub for financial and business services in the region. By focusing on digital assets, QFC aims to attract cutting-edge technology firms and foster a vibrant ecosystem for digital innovation.Participants in the lab will have access to a range of support services, including mentorship, technical assistance, and opportunities for collaboration with other innovators. The inclusion of prominent companies like Polygon and Partior highlights the lab's potential to drive significant advancements in the digital asset sector. This initiative underscores QFC's commitment to embracing digital transformation and supporting the growth of the digital economy in Qatar.
Investors' confidence in a soft landing is growing as markets eye the first interest rate cut from the Federal Reserve since 2020.
According to Odaily, ANZ economist Bansi Madhavani has indicated that the Bank of England is expected to keep its benchmark interest rate at 5.0% during its policy meeting in September. Madhavani suggests that due to the inflation rate in the services sector not aligning with the target of a sustained 2% inflation rate, the central bank will adopt a gradual approach in the early stages of the easing cycle. The Bank of England had previously cut rates in August and may consider another rate cut in November. Madhavani believes that the combination of economic weakness and progress in reducing inflation will pave the way for a total reduction of 150 basis points during this easing cycle.
The ETF industry is continuing to grow with net inflows of $66.3 billion in August.
According to Odaily, the Australian stock market reached a historic peak on Tuesday, driven by growing expectations of a significant interest rate cut by the U.S. Federal Reserve this week. The S&P/ASX 200 index rose by 0.3% to 8,148.8 points, surpassing the previous record of 8,148.7 points set on August 1. The CME's FedWatch tool indicates that 62% of market participants now anticipate a 50 basis point rate cut. Traders are also awaiting Australia's August employment report, due on Friday, to gauge the labor market's response to high interest rates. Since November 2023, the Reserve Bank of Australia has maintained interest rates at a 12-year high of 4.35%. Financial stocks, which are sensitive to interest rate changes, increased by 0.3%, with the Commonwealth Bank of Australia rising by 0.4%. Gold stocks continued their upward trend for the sixth consecutive day. Mining stocks saw a slight increase of 0.1%, with industry giants BHP Group and Rio Tinto gaining 0.3% and 0.7%, respectively. Technology stocks surged by up to 1%, reaching new record highs.
According to BlockBeats, former Celsius CEO Alex Mashinsky is facing a potential prison sentence of up to 115 years. Last Friday, Mashinsky's legal team submitted a memorandum to the New York District Court, requesting permission for six former Celsius employees, including the company's former Chief Financial Officer and Chief Revenue Officer, to testify in his criminal trial.In July 2023, Mashinsky was arrested on charges of defrauding customers and misleading them about Celsius's profitability. The U.S. Securities and Exchange Commission (SEC) accused Celsius and Mashinsky of raising billions of dollars through fraudulent and unregistered cryptocurrency sales and manipulating the price of the company's native token, CEL.Mashinsky's lawyers argued in the memorandum that, as CEO of Celsius, Mashinsky relied on information provided by his experienced professional team and had no intention of harming anyone. They emphasized, 'The government has informed the defense that its current position, according to sentencing guidelines, is that Mr. Mashinsky should be sentenced to 115 years in prison.'
According to Odaily, all five members of the U.S. Securities and Exchange Commission (SEC) are set to testify before the House Financial Services Committee next Tuesday. This marks the first time since 2019 that the entire SEC, not just the chairman, will appear together for testimony. Additionally, SEC Chairman Gary Gensler is scheduled to testify separately before the Senate on Wednesday.
According to PANews, Barclays foreign exchange strategist Skylar Montgomery Koning has indicated that the dollar is poised for a rebound as traders have overestimated the extent of the Federal Reserve's rate cuts and underestimated the retail sales data set to be released on Tuesday. Koning predicts that stronger-than-expected retail sales will shift market bets towards smaller rate cuts, thereby boosting the dollar. With only two days remaining until the Federal Reserve's rate decision, trader uncertainty is at its highest level since 2007. This consumer report is one of the last pieces of information before the rate announcement.Barclays anticipates that the Federal Reserve will implement three 25-basis-point rate cuts this year, citing the continued strength of the U.S. economy. Montgomery Koning noted that the market tends to overreact to rate cut expectations. She stated, 'During those soft landing periods, if you look at historical data, the market always overestimates the extent of the Federal Reserve's rate cuts. When expectations shift, the dollar tends to rebound.'