Pressure Remains on the Dollar as the Fed’s Minutes Suggest Cuts to Come
The dollar’s sharp decline against most currencies continued this week.
The dollar’s sharp decline against most currencies continued this week.
Bank of Japan Gov. Kazuo Ueda reaffirmed that the bank plans to continue raising rates, after recent communications confused market players about its future policy path. Earlier this month, speculation about tighter BOJ rate policy and concern about the U.S. economic outlook hit Tokyo stocks and sharply boosted the yen. Market players took Ueda's message more calmly on Friday, as the governor promised to pay close attention to market developments.
Comments at the Jackson Hole symposium later Friday may give clues about the Federal Reserve monetary policies, will boost or undermine prices of risk assets, including bitcoin.
According to BlockBeats, a report by Matrixport on August 23 indicates that while financial markets appear calm, significant turning points may be imminent due to gold, oil, treasury bonds, and the dollar nearing critical support levels. This situation suggests that the macroeconomic landscape is on the brink of substantial changes, although the full impact may take several months to manifest.The sustainability of certain policy proposals from U.S. presidential candidates is in question, with financial markets simultaneously predicting the election winner and worrying about rapidly rising debt levels. Historical data shows that bull markets typically begin around 250 days before a halving event and last for approximately 250 days. When bond yields rise and gold prices rebound simultaneously, it usually indicates a unique and somewhat contradictory economic environment, with Bitcoin likely to emerge as a primary beneficiary asset.
According to BlockBeats, Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech on the economic outlook at the Jackson Hole central bank annual meeting tonight at 14:00 (UTC+0). The market is anticipating that Powell will announce the commencement of an interest rate cut cycle in September, focusing on whether a 50 basis point cut remains an option. However, Powell may remain tight-lipped on this matter. Investors should be aware of potential market volatility during this period and consider related risks.Powell's remarks will be closely analyzed for any indications of his economic outlook, especially in light of weaker-than-expected employment reports and further easing of inflation. The market widely expects the Federal Reserve to implement a rate cut at its next meeting on September 17-18, though there is some disagreement on the extent of the cut. While most economists predict a 25 basis point reduction, some forecasting agencies, including Citigroup and JPMorgan, anticipate a 50 basis point cut. Wall Street is betting that Powell will confirm the rate cut at the Jackson Hole meeting in Wyoming. The market debate has shifted from whether there will be a rate cut to how significant the cut will be.
Magic Eden announced plans to launch the ME token through the rebranded ME Foundation.
According to a recent security report, most cryptocurrencies struggle to recover in value following hacks.
-- Gold prices rose in Asian trade on Friday but were nursing a tumble from record highs in the prior session as caution before an address by Federal Reserve Chair Jerome Powell lent some support to the dollar.
U.S. spot Bitcoin ETFs attracted $39.5 million on Wednesday, showing robust demand for these ETFs despite market uncertainty.
According to Cointelegraph, a United States appeals court has upheld a California federal judge’s decision to dismiss a lawsuit filed by Hodl Law against the Securities and Exchange Commission (SEC). The lawsuit aimed to compel the SEC to clarify its stance on whether Ether (ETH) is classified as a security.Hodl Law's complaint, filed in November 2022 in a San Diego district court, argued that the firm faced a potential risk of SEC enforcement action for using the Ethereum blockchain and its token, Ether. However, the Ninth Circuit appeals court panel ruled on August 22 that the complaint did not demonstrate a “realistic danger” of such enforcement action. The panel noted that there were no allegations indicating that the SEC had investigated, prosecuted, or threatened to investigate or prosecute the law firm’s use of Ether or Ethereum.The law firm had hoped the lawsuit would force the SEC to clarify its position on Ether, especially after the regulator launched several enforcement actions against crypto firms, implicating numerous cryptocurrencies under securities laws. The panel, however, supported the California court’s July 2023 dismissal of the case, stating that Hodl Law failed to provide evidence that the SEC had engaged in “final agency action” regarding the classification of Ether as a security.The panel further added that Hodl Law had not identified any authority requiring the SEC to engage in specific rulemaking or respond to private parties’ requests for guidance on Ether’s legal classification. Hodl Law’s senior managing partner, Fred Rispoli, expressed disappointment in an August 22 post, stating that the court’s decision was “disappointing but expected.” He emphasized that the firm merely wanted an opportunity to argue that Ether is not a federal security.The SEC has not yet determined whether Ether and assets on the Ethereum blockchain are securities, despite approving spot Ether exchange-traded funds (ETFs) in July. The Ninth Circuit panel mentioned that it is possible the SEC “will never decide that Ether or Ethereum is a ‘security’ under the Securities Act.” Rispoli criticized the panel’s decision, arguing that it undermines the rule of law in the United States. He also indicated that the firm would explore other avenues to compel the SEC to provide a definitive answer on the matter, stating, “We are not giving up.”