Currency Basket – Basket Village USA Fri, 04 Jun 2021 23:47:42 +0000 en-US hourly 1 Currency Basket – Basket Village USA 32 32 Global stocks near all-time high, dollar drops after US jobs data – Global Banking & Finance Review Fri, 04 Jun 2021 21:48:32 +0000

By Katanga Johnson

WASHINGTON (Reuters) – Global stocks rallied on Friday and closed near all-time highs, and oil and gold rose as the dollar fell after U.S. jobs data was solid but not as robust as expected, allaying investor fears that the Federal Reserve will soon reduce in monetary stimulus.

American employers increased their hires in May and raised wages. But the increase in the non-farm payroll of 559,000 jobs has landed below the 650,000 forecasts of economists polled by Reuters.

The pan-European STOXX 600 index rose 0.39% after hitting a record high this week. MSCI’s All-Country World Index, which tracks the shares of 50 countries around the world, gained 0.71%.

A stronger-than-expected jobs report would have heightened fears that the Fed is considering cutting its bond buying program and raising interest rates.

“This lower payroll number should alleviate investor worries about inflation – as long as the job market remains depressed, it’s hard to see wage inflation rise,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.

Zaccarelli added that there could be lingering concerns about headline price inflation as the Fed keeps rates low for longer amid an unprecedented fiscal stimulus.

Market whispers were more prominent, analysts said. US Secretary of Labor Marty Walsh in an interview with CNBC welcomed a “good and strong” employment report and predicted that more Americans would return to work in the coming months as that more would be vaccinated.

On Wall Street, Microsoft raised the S&P 500, followed by Apple, as the index gained 37.04 points, or 0.88%, to 4,229.89, marking a near-record overall jump of over 12% this year. These technology companies represent more than 5% of the weight of the MSCI all-country index.

Shares of Inc, Facebook, Alphabet’s Google and Tesla were also up.

The Dow Jones Industrial Average rose 179.35 points, or 0.52%, to 34,756.39 while the Nasdaq Composite added 199.98 points, or 1.47%, to 13,814.49.

So-called “memes stocks” continued to run wild, with AMC Entertainment Holdings’ shares showing little change but nearly doubling for the week.

Analysts said investors were monitoring the progress of proposed infrastructure spending in the United States. President Joe Biden has rejected a new proposal from Republican Senator Shelley Moore Capito, the White House has said. They were to meet on Monday.

10-year benchmarks last rose 20/32 for a return of 1.5585%, from 1.627%, while eurozone bond yields edged down as investors questioned the Fed policy.

Oil rose, with Brent surpassing $ 72 a barrel for the first time since 2019 as an OPEC + supply discipline and demand recovery.

The dollar index fell 0.39%, the euro up 0.36% to $ 1.2168. Strategists in a Reuters poll were almost evenly divided on the dollar’s near-term direction.

New orders for US-made products fell more than expected in April, as a global semiconductor shortage weighed on production of motor vehicles and electrical equipment, appliances and components.


Investors analyzed the economic data to assess whether inflation could force the Fed to change course.

“Will prolonged low-wage inflation allow a longer period of low headline price inflation to prevail?” Or will a Fed that is slow to raise rates – because it worries about a weak labor market – will create a higher-than-expected headline inflation regime? Said Zaccarelli of the Independent Advisor Alliance.

Spot gold gained 1.1% to $ 1,890.65 an ounce after falling 2% on Thursday, its strongest since February.

Overall Asset Performance

Global exchange rates

(Reporting by Katanga Johnson in Washington; editing by Jonathan Oatis and David Gregorio)

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UPDATE 1 pound erases the week’s losses as US jobs data pushes the dollar down Fri, 04 Jun 2021 13:31:00 +0000

* Chart: World exchange rates in 2020

* Chart: Trade-weighted pound sterling since the Brexit vote (Updates with move after US jobs data)

LONDON, June 4 (Reuters) – The British pound appreciated against the dollar on Friday and erased its losses against the greenback for the week, as weaker-than-expected US employment data pushed down the dollar from its recent highs.

A recent spate of strong economic data releases from the United States has propelled the dollar index – which measures the greenback against a basket of currencies – this week to its highest level since mid-May.

The gains came as investors expected the Federal Reserve to respond to a warming economy and adopt a tightening policy sooner than expected.

However, the release of jobs data on Friday sent the dollar down and gave the pound a little breathing space, which was previously set for its first week of losses in five. The pound is now on the way to end the week flat.

As of 1:11 p.m. GMT, the British pound was nearly 0.7% higher against the dollar at $ 1.4189. Against the euro, it was up 0.3% to 85.78 pence.

“I expect the pound sterling to maintain its gains against the dollar today as markets digest the disappointing impression of the NFP (non-farm payroll) in the context of what it means for policy from the Fed, “said Viraj Patel, global macro strategist at Vanda Research.

The pound, which has been the second best performing G10 currency against the dollar since the start of the year, has suffered from the strength of the dollar in recent days and fears that a new variant of the coronavirus spreading through the Britain will not affect plans to further reopen the economy.

The UK government will review plans to fully open the economy on June 14.

The pound sterling has been one of the best performing currencies in the G10 this year, at one point in the lead, as a bet for a rapid reopening of the UK economy thanks to the country’s vaccination program.

The positioning of speculators is always directionally net “long” on the pound, which means that the market is betting on the future gains of the currency against the dollar.

ING strategists have remained broadly positive on the outlook for the pound sterling despite the news.

“We doubt that the June 14 decision to fully open the UK economy will have a significant impact on the outlook for the pound,” they said in a morning note to clients.

“We believe there is good momentum behind the economy right now – enough to support the reasonably bullish BoE (Bank of England) set of forecasts and possibly maintain expectations that the BoE may tighten. before the Fed in 2H22. ” (Reporting by Ritvik Carvalho; editing by David Evans and Ros Russell)

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Gold Price Analysis: XAU / USD Bulls Intervene On Weekly Liquidity, Eyes On A Correction Before $ 1,850 Thu, 03 Jun 2021 18:41:36 +0000

  • Gold fell to break through an important support zone and make bullish commitments to weekly liquidity.
  • The market is now focused on the downside as the bulls in the US dollar shift into high gear.
  • Gold Price Analysis: XAU / USD Brings $ 1,857 Target After Big Crash – Confluence Detector

The price of gold was rocked Thursday as the US dollar emerged ahead of a much anticipated nonfarm wage event on Friday.

The greenback, measured against a basket of currencies in the DXY index, is trading near New York session highs at 90.51, up 0.67% after falling from a low of 89.8870 to a high of 90.5510 so far.

Gold, on the other hand, is trading near the day’s lows of $ 1,871, losing 1.92% after tumbling like a stone from a high of $ 1,909.69 to a low of 1,865, $ 36. In doing so, he broke a key area of ​​short-term support and highlighted long-term charts and downside targets; (More details below).

Meanwhile, the spotlight is on the US economic recovery, inflation and the Federal Reserve.

Stronger-than-expected US employment data that suggests an improving labor market has reinforced signs that the world’s largest economy is indeed on track for a post-covid recovery that should spur the Fed to act sooner rather than later.

For example, Dallas Fed CEO Robert Kaplan reiterated today, “I think it would be better to gradually release the accelerator on QE rather than having to brake later.

Meanwhile, and in terms of data and a potential prelude to tomorrow’s NFP, the US private sector payroll increased by 978,000 jobs in May, ADP’s national employment report showed.

This is the biggest increase since June 2020 and well above what economists polled by Reuters had predicted of an increase of just 650,000 jobs.

At the same time, initial jobless claims in the United States fell below 400,000 last week for the first time since the COVID-19 pandemic began more than a year ago.

Such data improvements could set the tone for central bank meetings later this month.

For NFP, the consensus forecast of Wall Street economists was 650,000 new jobs in the United States last month.

Meanwhile, ISM Sevices data was also released today, and the greenback’s momentum stopped around the same time as the release, potentially due to the jobs component that has shifted. from 58.8 in April to 55.3. This is not promising until tomorrow’s NFP, given that the vast majority of jobs created in a post-pandemic world are expected to be in the service sector.

Nonetheless, the market may continue to consider that, however strong a rebound in job creation may be, the fact is that the US economy is recovering at a faster rate than the Fed might have imagined this past. times a year ago.

In addition, the Federal Reserve has already started to unwind some of its asset purchases.

On Thursday, the New York Fed announced that it would begin to phase out its portfolio of exchange-traded funds that invest in corporate bonds on June 7, the first step in unwinding the holdings of corporate bonds acquired during the pandemic.

Meanwhile, the greenback was already on solid footing before economic reports, with currency investors betting the data will come out better than market forecast.

In addition, risk sentiment has deteriorated as investors have become cautious, which tends to strengthen the greenback.

However, other factors at play, such as a weaker crypto space as well as recent moves throughout this week by the People’s Bank of China which mainly intervened to weaken the onshore yuan, are helping to support the greenback. and consequently to weigh on the prices of gold.

This prompts traders to look to the USD / CNY for a broader direction of the market and greater force could suggest more pressure on latent short positions in the USD.

As for the inflation outlook, analysts at TD Securities note that “global food prices have risen at the fastest rate in a decade according to the UN, fueling fears of inflation in the markets.”

On the flip side, analysts have warned that “if inflation is indeed transient, we will likely see a prolonged period of super-easy monetary policy, suggesting that the market prices for the Fed hikes are too much.” belligerent and ultimately that gold prices could firm up further.

Gold technical analysis

As noted above, the price has broken a key short-term support structure.

On the 4 hour chart it is shown that the old dynamic support was broken, retested as a countertrend that held up and then gave way to a sell off.

Price has since hit an earlier area of ​​weekly and shorter-term liquidity and has started to correct from there.

One would expect price to correct to at least a 38.2% Fibonacci retracement of the bearish momentum where a confluence of previous lows is found.

Meanwhile, if the market continues to melt before such a retracement or after a significant correction, then the 1840/50 decline will be the focus of attention.

Weekly chart

Gold Price Analysis: XAU / USD Brings $ 1,857 Target After Big Crash – Confluence Detector

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sensex today: Stock Market Live Updates: Most sector indices in green. Metals, real estate and sugar stocks are recovering. Titan, RIL among the best Nifty winners. India The VIX drops sharply by 8%. Thu, 03 Jun 2021 04:06:00 +0000

Sensex and Nifty start the day on a high note amid long interest in computer and financial stocks. Titan is the top Nifty50 winner in early trades. RIL, Hindalco, Adani Ports and ONGC among other top notch winners. Most sector indices in green. Sugar, metals and real estate stocks are recovering. Bajaj Auto, Cipla and Nestlé among the latecomers on Nifty.

!1 new updateClick here for the latest updates

Top winners and losers in a larger market

Prestige Estates, Adani Total Gas, LIC Housing, Balrampur Chini Mills, Rossari Biotech and Mazdock Shipbuilders are gaining space while UTI AMC, KEC International, CDSL, Indiamart Intermesh, Bharat Forge and Gujarat Gas are under selling pressure.

Yields, dollar decline

The 10-year US Treasury yield fell below 1.60%. The dollar index abandoned its gains overnight and traded around 89.913 against its rivals. This makes emerging markets like India more attractive to foreign investors.

Stock filter

Find, select and invest in the best stocks

Asia shares 3-month highs

Japan’s Nikkei added 0.4%. Australian stocks hit all-time highs as investors applauded stronger-than-expected economic growth data released on Wednesday.

Bull markets can surprise on the upside. It is therefore logical to remain invested in this market. Bank Nifty still has room to go up. Investors should remember that at high valuations, corrections can occur at any time

– Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The midcap and small cap indices continue to outperform; PNB Housing Finance jumps by 10%

Candle sifter

Discover and filter business opportunities

India VIX drops sharply 8% to 15.9

Most Sensex stocks open in green; RIL first contributor to Sensex earnings

OPENING BELL: Sensex climbs 300 points, Nifty50 exceeds 15,650; sugar stocks go up to 10%

Wipro sells its stake in Denim Group for Rs 160 crore

Computer company Wipro sold its entire stake in Denim Group for $ 22.42 million (around Rs 160 crore). In March 2018, Wipro acquired a 33.33% stake in Denim Group Ltd and Denim Group Management, LLC, an independent application security company, for $ 8.83 million, Wipro said in a filing. regulatory.

Fourth Quarter Results Today

General Insurance Corporation of India, APL Apollo Tubes, Gujarat State Petronet, Quess Corp, Nilkamal, Arvind Fashions, Cupid and Roto Pumps are among the companies that will report their March quarter results today.

Pre-open session / l Sensex wins 170 points, Nifty over 15,650

SGX Nifty reports a positive start

The crafty futures on the Singapore Stock Exchange traded at 80.50 points, or 0.52%, at 15,710 points, a sign that Dalal Street was heading for a positive result on Thursday.

Technical view: Nifty50 turns sideways

Nifty50 on Wednesday closed flat after trading in the negative zone for most of the session. The index ended up forming a small bullish candle on the daily chart, with a long lower wick, suggesting that the bulls weren’t ready to give way easily. Analysts said the general trend remains bullish, despite the intermediate sideways move.

Dollar index stagnates, Brent approaches $ 72 a barrel

The dollar index, which measures the greenback against a basket of major currencies, held steady at 89.899, not far from a five-month low of 89.535 reached last week. Brent rose 24 cents to $ 71.59 a barrel, its highest level since January 2020. US West Texas Intermediate (WTI) crude rose 25 cents to $ 69.08 a barrel, its highest level since October 2018.

Asia shares 3-month highs

Asian stocks were slightly below a recent three-month high on Thursday, with China slightly weaker as investors weighed in inflation concerns ahead of major US economic data as oil prices hit record highs. peaks close to a year and a half. The largest MSCI index of Asia-Pacific stocks excluding Japan rose 0.3% to 711 points. Japan’s Nikkei added 0.4 percent. Australian stocks have hit all-time highs. Chinese stocks were slightly weaker.

US stocks have stabilized

Wall Street stocks ended slightly higher as oil-related stocks continued to rally and AMC, the darling of retail investors, soared. The Dow Jones Industrial Average ended up 0.1% at 34,600.38. The broad S & P500 index also rose 0.1% to close at 4,208.12, as did the technology-rich Nasdaq Composite Index, which finished at 13,756.33.

The rupee slips for the 3rd day, closes below 73

Extending losses for the third session in a row, the rupee fell another 19 pounds on Wednesday to end at 73.09 against the US dollar amid a stronger dollar in foreign markets and higher crude oil prices.

Sensex, nice wednesday

Stock indexes staged a smart rally from intraday lows to close flat for the second straight session on Wednesday, as a surge from the market heavyweight RIL offset the recognition of profits in FMCG, finance and IT counters. . After falling to a low of 51,450.58 in the late afternoon, the BSE Sensex regained lost ground to finish at 85.40 points or 0.16% decline to 51,849.48. The broader NSE Nifty index rose 1.35 points or 0.01% to close at 15,576.20.

Hello dear reader! Here’s something to start your trading day

Hello dear reader!  Here's something to start your trading day

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Rapidly tightening oil market fuels inflation concerns Wed, 02 Jun 2021 07:00:00 +0000


Australian Central Bank maintains policy as bond target looms

(Bloomberg) – Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast. Australia’s central bank has maintained its policy parameters as it prepares to decide to expand its yield target and quantitative easing programs, with a Covid-19 foreclosure complicating the outlook. The Reserve Bank of Australia kept the cash rate and the three-year yield target at 0.10% in Sydney on Tuesday, as expected. It will make a decision in July on whether to extend the yield target and pursue quantitative easing. A weeklong shutdown in the nation’s second largest city adds a layer of uncertainty to the outlook. “Despite the strong recovery in the economy and jobs, inflation and wage pressures are moderate,” Governor Philip Lowe said. “The council is committed to maintaining very favorable monetary conditions to support a return to full employment in Australia and inflation on target.” The Australian dollar fell slightly, trading at 77.41 cents US at 2:53 pm in Sydney from just 77.62 cents before the release. The case for Lowe to maintain the April 2024 bond as the target maturity had strengthened amid strong hiring, sentiment and investment plans. This was reinforced by the fact that the government kept the fiscal tap open in the May budget as it joins the RBA in an attempt to bring down unemployment to revive wage growth and inflation. “Progress in reducing unemployment has been faster than expected,” Lowe said in his statement. . “There are reports of labor shortages in parts of the economy.” Risks Ahead Yet the RBA can be encouraged to err on the side of caution if the Melbourne outbreak worsens and to expand its two bond programs to maintain maximum support for the economy. The possibility of large virus outbreaks is a continuing source of significant uncertainty, although this is expected to diminish as more of the population is vaccinated, ”Lowe said. “The council continues to place a high priority on the return to full employment. Globally, central banks are beginning to move away from emergency monetary parameters. The Reserve Bank of New Zealand surprised markets last week with projections of its official exchange rate rising in the second half of next year. Returning to Australia, economists predicted Wednesday before the data that gross domestic product rose 1.5% in the first three months of the year from the previous quarter, and rose 0.6% per compared to the previous year. Treasury Secretary Steven Kennedy, in testimony to a parliamentary panel earlier today, said partial data showed about 56,000 workers lost their jobs in the four weeks after the subsidy ended. Government JobKeeper salary which expired on March 28. He said strong jobs data and forward-looking indicators “continue to give us confidence that the job market has the underlying strength to absorb workers leaving the JobKeeper payment.” EconomyLowe Tests estimates that the unemployment rate in Australia will need to fall to almost 4% before leading to wage increases across the economy. It stood at 5.5% in April. The governor predicts that wage growth will need to increase at a rate greater than 3% – more than double the current rate – for inflation to return to the central bank’s target of 2-3% on a lasting basis. Lowe reiterated that “it’s unlikely to be before 2024 at the earliest. (Updates with other governor’s comments throughout.) More stories like this are available at Subscribe now to stay ahead with the most important source of business news. reliable. © 2021 Bloomberg LP

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How to invest if inflation is skyrocketing Tue, 01 Jun 2021 16:42:54 +0000

Annual inflation exceeded 4% in the United States in April, this is the largest increase in more than a decade. Unfortunately, if held up, rising inflation is often not good for investors. The classic 60/40 stock / bond portfolio can be hit from both sides, as prices go up, stocks and bonds can go down. In fact, a 60/40 strategy has historically yielded around 9% per year, but closer to 2% in times of high inflation. Plus, stocks aren’t particularly cheap before you even factor in potential inflation.

Of course, once the strategy is to stick with your wallet. Periods of inflation are not that common. Basically we have seen 1 in 5 years of high inflation looking back over decades. Strategies that work well in times of inflation often perform poorly in other economic outcomes. As such, there is a risk of adapting to something that is either temporary or not going as planned.

What works during inflation

Again researchers from the Man Group and Duke University calculated the numbers that investment strategies have historically held up to, and that’s what they found.

Basically, commodities have historically been a good bet during times of inflation. This makes sense, because in order for prices to rise, it is highly likely that the prices of the commodities that power the various goods and services in the economy will also rise. This is what is observed. Whether it’s energy, metals, agricultural products or other raw materials, most tend to increase during times of high inflation.

Now betting on any commodity can be risky, for example gold has risen about two-thirds of the time in historically inflationary environments. However, if you have a large basket of different products, then historically you have taken the advantage. In fact, collectibles like art, wine, and stamps can work well in inflationary environments. Again, owning a diversified basket can be more reliable than betting on a single asset.


Now there is no free lunch. The risk is above all that this inflationary episode will not continue. If we don’t see a spike in inflation, then commodities are generally performing poorly. Most commodity returns have historically occurred during inflation. During non-inflationary times, many commodities may even lose value on average based on history. This is not a setup for the success of the investment.

There is also the potential risk of arriving too late. Some products have already skyrocketed, so it’s unclear what the price is already embedded at current levels for specific assets. For example, an ETF that closely tracks the Goldman Sachs Commodity Index is already up 25% for the year so far at the time of writing. Further increases are of course possible, but it is clear that part of the rally in commodities has already occurred.

Other strategies

What other strategies work during times of inflation? Unsurprisingly, trend following may be among the best. It is essentially a question of holding assets whose price has increased in absolute or relative terms in recent months.

It works particularly well with commodities during times of inflation, but has also improved the yields of bonds, currency pairs, and stocks. It should also be noted that many factors that can generally work well in most market environments, on average, can lag during times of higher inflation. This includes focusing on factors like value, size, low volatility. Among factor strategies, dynamic investing stands out. It has historically worked during high inflation, but more importantly has also generated returns when inflation is not present.

At the sector level, unfortunately there is often nowhere to hide with high inflation. You might assume that with rising energy prices, energy stocks could perform well. Unfortunately no. Energy can outperform other sectors during episodes of inflation, but the returns are still uninspiring if history is to be trusted. The main way to spot winning stocks during times of inflation, at least at the factor level, appears to be momentum. Stocks that have already risen may tend to continue to rise, at least in the short term.

The big question

This historical research is instructive, but highlights the main challenge. In an inflationary environment, choosing a less traditional investment strategy, such as a greater focus on commodities, can improve returns.

Additionally, many proven strategies, like a classic 60/40 portfolio, can lag behind in high inflation. If inflation continues, considering a greater tilt towards commodities and moving away from stocks and bonds may be prudent.

Yet the fundamental question remains as to what the recent price spike means. Is normalcy starting to pick up after the pandemic, as supply chains resolve their issues after a disruption? Or is what we’re seeing now, the start of more persistent inflation that’s harder to beat? History tells us how to invest in times of inflation, but two questions remain as to, on the one hand, how long does this inflation last and, on the other hand, how far the inflation rate rises. , otherwise is not the peak.

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Can cryptocurrency turn the tide? Tue, 01 Jun 2021 00:00:38 +0000

Read also | Crypto traders defy Chinese crackdown with secret bets

Some cryptocurrencies known as stablecoins today are the economic equivalent of money market funds, and in some cases their practices should cause us to fear that they will break the ball, creating significant damage to the market. broader crypto market.

One of those stablecoins is Tether. With a market cap close to $ 60 billion, it’s almost as big as the reserve fund was in 2008. Each Tether token equals $ 1. But, as with the Primary Reserve Fund, the true value of these tokens depends on the market value of Tether’s reserves – the portfolio of investments made with the fiat currency it receives.

Read also | Indian Banks Warn Investors Against Cryptocurrency Trading

Tether recently revealed that as of March 31, only 8% of its assets were in cash, treasury bills and reverse repo notes. Almost 50% were commercial paper, but no details were provided on its quality. “Fiduciary deposits” represented 18%. Even more troubling: 10% of total assets were in “corporate bonds, funds and precious metals”, almost 13% were in “secured loans (none to affiliated entities)” and the rest in “other”, which includes digital tokens.

Tether separately provided a report from accounting firm Moore Cayman indicating that Tether’s assets exceed “the amount required to redeem” the tokens in circulation. But that report did not provide any description of the assets. It appeared to be based solely on management’s accounting, noting that Tether’s policy is to use “historical cost” and that “the realizable value of these assets[…]could be significantly different ”.

These facts should warn holders of Tether – and other stablecoins – that they might struggle to get $ 1 back for each token. Tether does not claim that its tokens are backed by fiat currency. He is simply saying that his tokens “are 100% backed by Tether’s reserves,” which are defined so broadly that any asset could be eligible. Tether also says that it “reserves the right to delay any refund or withdrawal if such delay is necessitated by the illiquidity or unavailability or loss of any Reserve” and that it “reserves the right to redeem Tether tokens through in-kind redemptions of securities and other assets held in the Reserves. “

A money market fund would never be allowed to follow such policies. The Securities and Exchange Commission allows money market funds to use a net asset value of $ 1 under stable pricing conventions – valuing assets at amortized cost rather than market price, and using pricing “rounded to a dime.” “- on the sole condition of limiting their risk. investments should have minimal credit risk and short maturities, such as short-term government securities and high-quality commercial paper, and they should limit the amount invested in a single issuer. The board of directors of the fund must also believe that a net asset value of $ 1 reflects the market value of its assets.

But stable coins like Tether don’t face such constraints. There is no US legal framework to regulate them. There is no requirement on how reserves are to be invested, nor any requirement for audits or reports.

If any of Tether’s investments became worthless or lost value, he would suffer the equivalent fate of breaking the bullet. And if for some reason a wave of Tether holders suddenly tried to convert their tokens to cash, we don’t know if Tether could liquidate enough investments quickly to meet demand.

The consequences of such an inability to cope with a sudden wave of withdrawals could be significant in the larger crypto ecosystem. Tether is the most traded cryptocurrency; its recent volume has been more than double that of Bitcoin. Coindesk recently described Tether as “a key plumbing fixture for the roughly $ 2 trillion global crypto market,” as traders “use it to quickly transfer dollar value between exchanges in order to grab arbitrage opportunities when a bank transfer is unavailable or too slow “.

A research report from JPMorgan earlier this year stated that 50% to 60% of all Bitcoin transactions are for Tether, and trading is dominated by proprietary trading companies using high frequency algorithmic strategies. If these algorithms were turned off – as has happened in Treasuries and other asset classes when volatility increases – there could be a significant drop in liquidity. “A sudden loss of confidence in [Tether] would probably generate a serious liquidity shock in the Bitcoin markets, ”he noted.

It’s easy to imagine other collateral consequences, especially since the recent rise in crypto prices has likely been fueled in large part by debt. When liquidity suddenly drops and prices fall, those in leveraged positions are in a hurry.

About 65% of Tether tokens are held through the Chinese exchange Huobi, according to crypto analysis firm Long Hash. Chinese investors may convert the renminbi into Tether in order to trade other cryptocurrencies while avoiding legal or regulatory constraints. Ownership is also highly concentrated, according to Coinmarketcap. Although there are nearly 3.5 million addresses that hold Tether tokens, the top 10 addresses hold 24% and the top 100 hold 41% of all tokens. This could increase the risk of leakage.

Just two years ago, stablecoin risks were brought to public attention by Facebook Inc.’s proposal for Libra. He wanted to create a “single world currency” or a stable currency that would be pegged to a basket of fiat currencies. It has sparked widespread opposition from central bankers and politicians, with many fearing it will undermine sovereign currencies. Facebook then had to promise during congressional hearings that it would not launch the idea unless regulators approved.

In the months that followed, the Financial Stability Board proposed some principles for regulating stablecoins, which Donald Trump’s administration broadly endorsed in a press release last December. These included restrictions on reserves, limits on risks and transparency requirements. Libra, now called Diem, has been redesigned to address many of these concerns. But regulators have not approved it and, more importantly, the United States has not implemented the principles of counseling in general.

Last fall, the Office of the Comptroller of the Currency issued guidelines that national banks could hold stablecoin reserves if they verified daily that reserves were at least equal to tokens in circulation. But stable coin issuers do not have to follow OCC guidelines. Tether, for example, keeps its reserves in a small bank in the Bahamas.

We need to strengthen the regulation of cryptoassets in general and stablecoins in particular. A bill has been introduced in Congress that would require stablecoins to be issued by a bank and impose certain standards, but no one can guess if that goes ahead.

So maybe Gary Gensler, the new SEC chairman, should consider regulating stablecoins the same way as money market funds: issuance of a stablecoin should be conditional on adherence to limiting practices. risks designed to ensure that the tokens are worth that price. These should limit reserve investments to those with minimal credit risk and short maturity. There should also be liquidity requirements.

The SEC is about to review the adequacy of its regulation on money market funds because the reforms it imposed following the 2008 financial crisis were not sufficient. When financial markets became very stressed in March 2020, a rush on money market funds was only prevented by the extraordinary interventions of the Federal Reserve. Hopefully regulators take a closer look at stablecoins before they experience the crypto version of the disclaimer.

This story was posted from a feed with no text editing.

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France’s public deficit in 2021 should be 9.4%, according to the Minister of Finance Mon, 31 May 2021 06:50:55 +0000

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21Shares Selects CryptoCompare For Crypto Data Services To Expand Market Participation

Zurich | London, May 31, 2021 – 21Shares, the pioneering Swiss ETP Crypto issuer, has selected CryptoCompare, the digital asset market data specialist, to provide settlement prices for all of its unique asset ETP data as of June 1, 2021. High Quality Daily Delivery Market data to 21Shares stakeholders is paramount to ensure that market participants can properly and confidently assess the liquidity profiles demanded by investors in the crypto markets. actively growing. 21Shares, the innovation-driven Swiss crypto ETP issuer whose product line includes Bitcoin, Ethereum, as well as HODL Basket ETP and its new ETP Stellar and Cardano Bitcoin, is opening investments in cryptocurrencies that currently list 14 FTEs on the Zurich SIX as well as the Frankfurt and Vienna exchanges. The objective of 21Shares is to expand its network of European banks, asset managers, brokers and exchanges allowing market participation. In order to achieve this goal, 21Shares uses numerous service providers to alleviate any issues with using live data during volatile and sometimes steep trading times in the underlying crypto asset, a key feature. required for the success of its institutional quality FTEs. CryptoCompare was the separate choice for 21Shares. Since its launch in 2014, CryptoCompare has grown into an integral data resource, bridging the gap between digital asset markets and traditional finance. Its proprietary data infrastructure captures, standardizes and distributes data flows on an intraday / daily basis across the entire 21Shares single-asset ETP portfolio. CryptoCompare is already the go-to provider of digital asset market data and compute services for benchmarks, supporting a wide range of products. Charles Hayter, CEO and Co-Founder of CryptoCompare, said: “We are delighted to be working with 21Shares as a digital asset data service provider. In light of recent growth in digital asset markets, this partnership will undoubtedly support increased investment in cryptocurrencies, bolstering 21Share’s trusted product suite with CryptoCompare’s premium data offering. Ophelia Snyder, Co-Founder and President of 21Shares AG, added: “As a very innovative company driving a change in the way investors access crypto assets, we choose our partners with care and diligence. CryptoCompare has shown an equal willingness to transform the market for trusted crypto data using innovative technology and adapt it in an ever more demanding industry. Providing us with the most accurate and transparent daily data is an essential part of our expansion and market participation. CryptoCompare is the right partner to achieve this. – Ends – Media RelationsCryptoComparer | Alissa Ostrove | 21 Shares | Laurent Kssis | | +41 44 260 86 60 About CryptoCompare – https: // By aggregating and analyzing quote data from globally recognized exchanges and seamlessly integrating multiple datasets, CryptoCompare offers a comprehensive overview and market granularity through trade data, order books, historical, social and blockchain data. About 21Shares – 21Shares makes investing in crypto assets as easy as buying stocks using your broker or conventional bank. Investors can invest in cryptocurrencies using a conventional ETP structure (or tracker) easily, with confidence and security and at a lower cost thanks to the 21Shares ETP suite now made up of 14 Crypto ETPs: the 21Shares Crypto Basket Index ETP (HODL: SW), 21Shares Bitcoin (ABTC: SW | 21XB: GY), 21Shares Ethereum (AETH: SW), 21Shares XRP (AXRP: SW | 21XX: GR), 21Shares Bitcoin Cash ETP (ABCH: SW), 21Shares Binance ETP (ABNB: SW), 21Shares Tezos ETP (AXTZ: SW), 21shares Bitcoin Suisse ETP (ABBA: SW), 21Shares Bitwise 10 ETP (KEYS: SW), Sygnum Platform Winners Index ETP (MOON: SW), 21Shares Short Bitcoin ETP (SBTC: SW | 21XS: GY), 21Shares Polkadot ETP (ADOT: SW | PDOT: GR), 21Shares Stellar ETP (AXLM SW | XLME GR) and 21Shares Cardano ETP (AADA SW | DADA GR). The entire suite is listed on a regulated framework on the official market of Deutsche Boerse, SIX Swiss Exchange, BX Swiss and some on Börse Stuttgart in CHF, USD, GBP and EUR respectively. Founded in 2018, 21Shares is led by a team of talented serial entrepreneurs and experienced banking professionals from the world of technology and finance. Incorporated in Zug, with offices in Zurich and New York, the company has launched several world firsts, including the first crypto basket index (HODL) ETP listed in November 2018. 21Shares has 14 crypto ETPs listed today and has more of $ 1.4 billion total listed products. Disclaimer This document and the information it contains are not intended for distribution in the United States, Canada, Australia or Japan or in any other jurisdiction in which distribution or broadcast would be illegal. This document does not constitute an offer of securities for sale in the United States, Canada, Australia or Japan. This document does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States. The securities of 21Shares AG to which these documents relate have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States. -United in the absence of registration. or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There will be no public offering of securities in the United States. This document is only distributed and is intended for: (i) investment professionals falling under section 19 (5) of the Financial Services and Markets Act 2000 (Financial Services and Markets Act 2000 Promotion) Order 2005 ( the command “); or (ii) wealthy entities and other persons to whom they may be legally communicated, falling under article 49 (2) (a) to (d) of the Ordinance (all these persons being together referred to as “data subjects “); or (iv) persons falling under Article 43 (2) of the Order, including existing members and creditors of the Company or (v) any other person to whom this document may be lawfully distributed in circumstances where Article 21 (1) of the FSMA does not apply. The Securities are only available and any invitation, offer or agreement to subscribe, purchase or acquire such securities will only be concluded with the persons concerned. Anyone who is not a Data Subject should not act or trust this document or any of its contents. In any EEA Member State (other than Austria, Belgium, Denmark, Finland, France, Germany, Great Britain, Ireland, Italy, Luxembourg, Malta, The Netherlands, Norway, Spain and Sweden) which has implemented the Prospectus Regulation (EU) 2017/1129, as well as any implementing measure applicable in any Member State, the “Prospectus Regulation”), this communication is only addressed and addressed only to qualified investors in that Member State within the meaning of the Prospectus Regulation. Exclusively for potential investors in Austria, Belgium, Denmark, Finland, France, Germany, Great Britain, Ireland, Italy, Luxembourg, Malta, Netherlands, Norway, Spain and Sweden, the Base Prospectus 2019 (EU) is issued available on the Issuer’s website at The approval of the 2019 Base Prospectus (EU) should not be understood as an approval by the SFSA of the securities offered or admitted to trading on a regulated market. Eligible potential investors should read the 2019 Base Prospectus (EU) and the relevant Final Terms before making an investment decision in order to understand the potential risks associated with the decision to invest in the securities. You are about to buy a product that is not straightforward and may be difficult to understand. This document does not constitute an offer to sell or a solicitation of an offer to buy or subscribe for securities of 21Shares AG. Neither this document nor anything contained therein should form the basis of or be relied upon in connection with any offer or commitment of any kind in any jurisdiction. This document constitutes an advertisement within the meaning of the Federal Financial Services Act and not a prospectus. Copies of the Base Prospectus in force dated November 13, 2020 are available free of charge on the Issuer’s website. Subject to applicable securities laws, the Base Prospectus and the final terms of any product mentioned in this document can be obtained from 21Shares AG on the website. Copies of this material may not be sent to jurisdictions, or distributed or sent from jurisdictions, in which this is prohibited or prohibited by law. The information contained in this document does not constitute an offer to sell, or the solicitation of an offer to buy, in any jurisdiction in which such an offer or solicitation would be unlawful prior to registration, exemption from registration or qualification under securities laws of any jurisdiction.

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Hyperinflation turns 100 – Market Research Telecast Sun, 30 May 2021 09:23:58 +0000

Exactly a century ago, in May 1921, the historic “The London ultimatum”, the summit which established the payment schedule that Germany had to respect for war reparations to the Allies, as ordered by the Treaty of Versailles signed two years earlier, as a Germanic surrender and the end of World War I.

Although the financial problems of the Weimar Republic already stemmed from the expenses the German Empire had incurred in solving what was then called the “Great War”, the London summit marked a milestone. the devaluation of the mark accelerated uncontrollably, and finally go into free fall shortly thereafter.

Surrealist scenes of this hyper were marked by fire in the collective memory of the Germans, which could explain their current obsessive prolixity in the administration of public funds. At the height of the crisis, currency issuance got so crazy that the paper the tickets were printed on cost more than the face value of each.

14 zeros on an invoice

The annual inflation rate peaked at 182 billion percent – one dollar was trading at 4.2 trillion German marks. The state issued its extremely devalued Papiermarks at such a speed that they only printed one side of the invoice. Wads of worthless money were used to fuel stoves, line coins, and even make blocks of paper as children’s games. The last hyper German note had 14 zeros: to get an idea of ​​the seriousness of this devaluation, it suffices to compare it with our famous note issued in 1981, of “barely” a million pesos.

From so many counts and calculations of zeros, a kind of stress was born in the German population that the press of the time called “Heart attack of zeros”. It was not for less: workers and civil servants collected their wages daily so as not to lose by a landslide against inflation. At noon they would run with baskets and even wheelbarrows full of cash to buy any merchandise, which would surely be more expensive at sunset. You couldn’t live like this: the infant mortality rate has skyrocketed and, among adults, the suicide rate.

The annual inflation rate peaked at 182 billion percent – one dollar was trading at 4.2 trillion German marks.

But human creativity in the face of economic adversity never ceases to amaze us. To fill the void left by the monetary authorities of the central government, the idea of ​​creating a parallel means of payment was born, managed by municipalities, chambers of commerce and companies in payment difficulty: this is how born Notgeld (“emergency money”). . , a kind of Germanic patacón mixed with a basket of rudimentary banknotes. Closer to barter than federal legal tender, the Notgeld was exchanged for locally essential goods, as currency for the survival of the frayed social fabric. The peculiarity of the Notgeld was its unexpected quality as a store of value, in the midst of a hyper that was to go down in history.

These coupons were illustrated with a remarkable variety and quality of folk motifs from the Germanic tradition, which quickly made them objects of great interest to collectors and art and numismatic galleries. Unlike depreciated paper stamps, notgelds have become aesthetic objects whose price makes them attractive as a source of collection and even investment for municipalities and private savers. A suggestive precedent to start thinking about the current experience of NFT (Non Fungible Tokens), these new and increasingly expensive digital works, which are integrated into the cryptocurrency blockchain and revolutionize the art market.

Every time it rained, it would stop. At the end of the stormy year 1923, the government erased the strip of zeros that no longer fit on the banknotes, and invented the Rentenmark, a supposedly land-backed transitional currency and other public goods, which miraculously succeeded in regaining the trust of desperate Germans. A controversial figure emerges as the guarantor of this timely monetary recovery: the banker Hjalmar Schacht, appointed head of the Reichsbank (the German central bank at the time) as guardian of the budgetary discipline lost during the years when the Republic of Weimar was monetizing its debts until the Papiermark exploded like confetti.

Schacht’s incredible story synthesizes the tensions and contradictions of Western capitalism between the wars. From an aristocratic financial genius who pulled the republic out of the monetary pit and international discredit, Hjalmar ended up being Adolf Hitler’s economic right-hand man. Although ideologically suspicious of Nazism, the banker entered the Third Reich, first as an advisor and campaign collector, then as head of the Reichsbank and finally as Minister of the Economy.

But internal auctions kept him away from Hitler’s daughters’ table, until he was accused of plotting an assassination attempt against the Führer, so went to one of the concentration camps that his financial mastery helped build. But the ironies of his plight continued: when Hitler fell, the Allies saved him, but to put him on the dock at the Nuremberg trials, where he was one of the few leaders acquitted. His career continued for many years, as star rescuer of emerging economies in emergency.

The causes of German hyperinflation are still debated to this day, which makes sense since Germany finished paying its war reparations barely ten years ago. The context of strong monetary issuance that crosses global finances, affected by the pandemic, has reopened the historic divide. The more heterodox, clinging to John Maynard Keynes’ critique of the Treaty of Versailles, insist that the excessive reparations demanded from defeated Germany were the main cause of hyperinflation.

On the other hand, they point out that new studies by academic historians confirm the guilt of the German government, both in starting the war and in funding it irresponsibly, giving mercilessly or shamelessly to “the little machine”: they even question the usual consensus that the restorative burden imposed on the Weimar Republic outside invaluable.

More absorbed in the short term, the Argentines have fun with the version “for void»From the discussion on the impact – or not – of the issue of spillovers in inflationary acceleration. Fortunately Alberto Fernandez he observes the problem from a historical perspective: “The budget balance no longer exists, the central countries have broken it. All of Europe has a staggering budget deficit. We are repeating these things here because they date from the 90s, ”the president justified himself to CNN, repeating the path of his CFK leader and of General Perón, who in the middle of the last century analyzed the present of a changing world. war and confused him with the long future of the economy and world trade. And it messed up, as shown in the hard-hitting book that economic historian Roberto Cortés Conde has just published (along with other authorities in the field), entitled: La Economía de Perón (1946-1955).

But this is another story. The same.

Silvio Santamarina is the author of Historia de la Guita: The Culture of Money in Argentina.

Disclaimer: This article is generated from the feed and is not edited by our team.

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@nascarcasm: Bad boy makeover for drivers Sat, 29 May 2021 14:21:12 +0000

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