DIFX Buzz: Here’s a weekly market recap for you to start your Monday with the top news of the week.
Let’s see what happened in markets this week:
Forex
❖ The British pound is bullish as investors assess recent central bank decisions and look ahead to the Bank of England’s upcoming rate decision.
❖ The pound reached a 10-month high against the euro and remained near a 14-month high against the dollar at the start of the week as investors expect more rate hikes due to stubborn inflation in Britain.
❖ Currency movements have been influenced by global central bank actions aimed at curbing inflation, with the US dollar index starting the week with a slight recovery from a one-month low after the Federal Reserve opted not to raise rates last week.
❖ The markets are projecting a 72% chance of a 25 basis point rate hike from the Fed in July.
Equities
❖ Intel plans to invest more than 30 billion euros in Germany, bolstering its expansion efforts in Europe and contributing to Chancellor Olaf Scholz’s vision of a global chip hub.
❖ Acknowledging China’s rapid development and large-scale production in the electric vehicle sector, Ford’s Executive Chairman Bill Ford concedes that the United States is currently unprepared to compete, but emphasizes their efforts to get ready for future competition.
❖ Elon Musk confirmed in a tweet that Twitter has plans to develop a Twitter video app for smart TVs, aligning with their new focus on expanding video content on the platform as part of their strategy to revitalize the business beyond digital advertising.
❖ Indian budget carrier IndiGo placed a record-breaking order for 500 jets with Airbus during the Paris Airshow, marking the largest-ever aircraft order in terms of quantity and reflecting the anticipated growth in regional travel demand.
Crypto
❖ Crypto investors have adopted a more cautious approach since the meltdown of many reputable platforms last year. They are using platforms that offer stronger user protection as well as investing in smaller sizes as opposed to the high levered positions which led to extreme liquidations in 2022.
❖ South-Korean national, Do-Kwon was jailed in Montenegro for 4-months after using fake documents. Do-Kwon has been charged with multi-billion dollar fraud after the Luna collapse in 2022.
❖ Blackrock, which manages around $10 trillion worth of assets, has filed for a Bitcoin ETF. This has been followed by rumors that Fidelity with $4 trillion AUM will either launch its own ETF or buy Grayscale.
Commodities
❖ Due to low rainfall across the south of China, the nation has had to make up for the shortfall of hydroelectric power by turning to coal-fired power plants.
❖ 4 firms are in the race to buy Zambia’s Mopani Copper Mines. Zambia’s President Hichilema wants to triple the output of the metal in Africa’s second-largest copper producer.
❖ The London Metal Exchange will have its reputation in contention as it faces accusations of misconduct after halting trading last year in March. This resulted in around $12bn worth of Nickel deals being declared void after prices erupted in a record-breaking surge.
❖ Gold is trading flat and analysts have stated the asset looks “exhausted” as the price has failed to express some convincing evidence of a direction. Investors will await the testimony from Jerome Powell for some guidance on the monetary policy.
