• July 23, 2024

Fed May Start Rate Cuts In September, Limited Dollar Depreciation Expected

According to Odaily, analysts at Société Générale suggest that the Federal Reserve might begin cutting interest rates in September, but any depreciation of the dollar is expected to be limited. The bank's forex strategists noted that the dollar's rebound in 2021-2022 has provided ample room for downward correction. However, unless the U.S. economy slows down significantly more than anticipated, U.S. interest rates are 'very unlikely' to approach pre-pandemic levels of 2020.They highlighted that the most significant fluctuations are expected in the dollar-yen exchange rate, which could drop from the current 156.197 to 140 by early 2025. The yen has been the currency most adversely affected by rising U.S. interest rates and yields. Additionally, they mentioned that at some point in 2024 or 2025, the euro-dollar exchange rate might increase from the current 1.0850 to 1.15.

  • July 23, 2024

European Banks Revive Digital Asset Payment Market

According to Odaily, approximately a year and a half after the collapse of crypto-friendly banks in the United States, European banks are making strides to rejuvenate the 24/7 payment market for digital assets. In recent weeks, two Swiss banks, AMINA Bank AG and Sygnum Bank AG, have launched real-time payment and settlement networks. Their objective is to fill the void left by the Silvergate Exchange Network (SEN) and Signature Bank's Signet platform, both of which played crucial roles in providing liquidity to the crypto market before their collapse in March 2023.Company documents reveal that in the quarter preceding their shutdown, SEN processed $117 billion in transfers, while Signet handled $275.5 billion. The introduction of these new networks by AMINA Bank AG and Sygnum Bank AG aims to restore the seamless liquidity and continuous transaction capabilities that were lost with the closure of SEN and Signet. This move is seen as a significant step towards stabilizing and advancing the digital asset ecosystem in Europe.