Blockchain
Dollar edges down, ether’s 2-month high fuels crypto rally
The dollar struggled for direction on Tuesday as investors maintained their expectations for the timing of Federal Reserve monetary easing this year. Meanwhile, Ether was poised for its largest two-day gain in nearly two years, and Bitcoin neared a record high amid speculation about U.S. spot exchange-traded funds that would track the world’s second-largest cryptocurrency. The euro rose 0.12% to $1.0869.
Investors are anticipating Thursday’s data from the European Central Bank (ECB) negotiated wage tracker and the euro zone Purchasing Managers’ Index (PMI), which could offer further insights into the euro area’s monetary policy cycle. In contrast, the U.S. economic data calendar is sparse this week, so investor focus is shifting to numerous Federal Reserve speakers. Several officials on Monday emphasized the need for continued policy caution, even after last week’s data showed a slowdown in consumer price pressures in April.
Money markets are currently pricing in 42 basis points (bps) of Fed rate cuts in 2024, suggesting one 25 bps reduction and a 68% chance of a second cut by December, down from fully pricing in two cuts before recent hawkish comments from Fed officials. They are also betting on 63 bps of ECB rate cuts in 2024, down from around 73 bps in mid-May. Analysts noted that Atlanta Fed President Raphael Bostic’s comments, which indicated the Fed’s benchmark rate might remain higher than in the past decade, were supportive of the dollar.
“We expect the dollar to weaken after the first rate cut (by the Fed), which markets now price in September, but we also see the risk of a delay in monetary easing with the Fed making the first move in December,” said Athanasios Vamvakidis, global head of forex strategy at BofA. Against a basket of currencies, the dollar dropped 0.08% to 104.52.
George Saravelos, global head of forex research at Deutsche Bank, argued that there is a risk of greater divergence favoring the Fed, combined with the dollar’s status as a high-yielding currency, which supports its strength. The upcoming Personal Consumption Expenditures (PCE) price index report, the Fed’s preferred gauge of inflation, due on May 31, will be closely watched.
In the cryptocurrency market, Ether jumped 6.2% to $3,715.60 after reaching $3,730.70, its highest level since March 16. It surged nearly 14% in the previous session, marking its largest daily percentage gain since November 2022. Bitcoin surpassed the $70,000 level and was last trading 2% higher at $71,128, approaching its all-time high of $73,803.25 reached in March. Tony Sycamore, a market analyst at IG, noted that the rise in cryptocurrencies was partly driven by last week’s U.S. inflation data, which boosted risk sentiment and brought rate cuts back into consideration.
Against the yen, the dollar dropped 0.06% to 156.20, close to its lowest in over 30 years at around 160. Fears of intervention from Japanese authorities deterred traders from pushing the yen to new lows, though the significant interest rate differentials between the U.S. and Japan continued to make the yen an attractive funding currency. “Forex interventions can buy some time and temporarily avoid an excessive depreciation of the yen, but if the Fed starts cutting later than the markets currently expect, it can become challenging for Japanese authorities to keep the yen below certain levels,” Vamvakidis from BofA argued.
The Canadian dollar remained flat at $1.3627 ahead of inflation data later in the session. “We have called for a Bank of Canada (BoC) rate cut in June for the past couple of months, and are expecting that to make the loonie increasingly less attractive compared to other commodity currencies,” said Francesco Pesole, a strategist at ING. According to a Reuters poll, the BoC is expected to cut interest rates three times ahead of the Fed’s first move.
The New Zealand dollar fell 0.03% to $0.6103 ahead of the Reserve Bank of New Zealand policy meeting, which is expected to maintain its key interest rate at 5.50% on Wednesday.
Source: reuters.com
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Blockchain
Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin)
Blockchain technology continues to drive innovation across industries, reshaping finance, infrastructure, and philanthropy. Today’s news roundup explores exciting developments in blockchain ETFs, tokenization funding, quantum-resistant chips, public blockchain initiatives, and impactful social projects. Here’s a deep dive into the latest blockchain headlines:
BlackRock ETF Embraces Blockchain with First Muni Bond Purchase
BlackRock’s blockchain-focused ETF has made its first foray into municipal bonds, signaling increased confidence in integrating blockchain technology with traditional finance. The ETF’s strategic investment demonstrates how blockchain can enhance transparency and efficiency in bond markets.
By tokenizing municipal bonds, BlackRock aims to simplify trading and settlement processes while reducing associated costs. This development underscores the growing role of blockchain in transforming financial instruments and fostering greater market accessibility.
Source: Yahoo Finance
Plume Secures Funding for Tokenization Platform
Blockchain fintech company Plume has raised significant funding to advance its tokenization platform. The company’s innovative approach enables businesses to convert real-world assets into digital tokens, streamlining asset management and unlocking liquidity.
Tokenization is rapidly gaining traction as a game-changer in sectors such as real estate, art, and commodities. Plume’s success reflects a broader trend of investment in blockchain solutions that bridge the gap between traditional assets and decentralized technologies.
Source: Fortune
SEALSQ and Hedera Partner for Quantum-Resistant Blockchain Chips
SEALSQ and Hedera have announced a groundbreaking collaboration to develop quantum-resistant chips designed to secure blockchain infrastructure. These advanced chips will provide robust protection against future quantum computing threats, ensuring the integrity of blockchain networks.
As quantum computing capabilities evolve, safeguarding blockchain ecosystems becomes increasingly critical. This partnership highlights the importance of proactive measures in maintaining the resilience and trustworthiness of decentralized systems.
Source: The Quantum Insider
Deutsche Bank’s Public, Permissioned Blockchain Initiative
Deutsche Bank’s Layer 2 blockchain solution is set to go public and operate as a permissioned network, according to its tech partner. This initiative aims to strike a balance between accessibility and security, leveraging blockchain to streamline financial services and enhance operational efficiency.
The decision to adopt a public, permissioned model reflects a growing trend among enterprises seeking to harness the benefits of decentralization while maintaining control over sensitive data. Deutsche Bank’s approach could serve as a blueprint for other financial institutions exploring blockchain adoption.
Source: CoinDesk
KuCoin’s “Light Up Africa” Initiative Brings Hope to Thousands
Cryptocurrency exchange KuCoin has made a significant impact through its “Light Up Africa” donation ceremony in Ghana, benefiting 36,000 children across the continent. The initiative combines blockchain technology with philanthropy to address energy poverty and support education.
By leveraging blockchain for transparency in charitable contributions, KuCoin sets an example of how the crypto industry can drive meaningful social change. The project demonstrates the potential of blockchain to empower communities and foster sustainable development.
Source: PR Newswire
Industry Implications and Key Takeaways
Today’s developments highlight the transformative potential of blockchain across multiple domains:
- Integration with Traditional Finance: BlackRock’s ETF underscores the synergy between blockchain and established financial systems.
- Tokenization Trends: Plume’s funding success reflects the growing demand for digital asset solutions.
- Quantum-Resistant Technologies: SEALSQ and Hedera’s partnership addresses emerging cybersecurity challenges.
- Enterprise Blockchain Adoption: Deutsche Bank’s public, permissioned network showcases the adaptability of blockchain in financial services.
- Social Impact: KuCoin’s philanthropic efforts illustrate blockchain’s capacity to drive positive societal outcomes.
The post Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin) appeared first on News, Events, Advertising Options.
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