Euro rises despite inflation, boosted by market sentiment and economic resilience. Gold gains on falling yields and safe-haven appeal.  Resilient EUR/USD Despite Sticky Inflation The Euro’s unexpected strength against the US Dollar is a significant development with several underlying factors: Market Sentiment Shift: The broader market sentiment is moving away from a perceived aggressive Federal Reserve tightening path. While the core PCE inflation data was slightly higher than anticipated, it wasn’t enough to dramatically alter this perception. Investors are increasingly pricing in potential rate cuts later in the year. Eurozone Economic Resilience: The Eurozone economy has shown surprising resilience, with recent economic indicators suggesting a more robust economic outlook than previously anticipated. This has boosted confidence in the Euro. Geopolitical Factors: The ongoing geopolitical tensions, particularly related to the Russia-Ukraine conflict, may be contributing to the Euro’s strength as a safe-haven currency. It’s important to note that while the EUR/USD pair has shown resilience, it’s still susceptible to shifts in market sentiment and economic data. A more hawkish stance from the Federal Reserve or weakening Eurozone economic indicators could reverse the current trend. Gold’s Bullish Rebound Amidst Market Uncertainty Gold’s recent rally is a complex interplay of several factors: Declining US Treasury Yields: The primary driver of gold’s price increase has been the decline in US Treasury yields. As bond yields decrease, the opportunity cost of holding non-interest-bearing gold diminishes, making it more attractive to investors. Safe-Haven Demand: Gold is often seen as a safe-haven asset during times of economic uncertainty or geopolitical tensions. The ongoing global economic challenges and geopolitical risks have contributed to increased demand for gold as a hedge against potential market volatility. Central Bank Buying: Central banks around the world have been net buyers of gold in recent years, which has supported the metal’s price. However, it’s essential to consider that gold prices can be volatile, and the current rally may be subject to corrections. A potential increase in interest rates or a reduction in geopolitical tensions could put downward pressure on gold prices. Weakening Australian Dollar Amidst Economic Challenges The Australian Dollar’s underperformance is primarily linked to: China’s Economic Slowdown: As Australia’s largest trading partner, China’s economic health is crucial for the Australian economy. The ongoing slowdown in China has negatively impacted commodity prices, which are a significant export for Australia. RBA Monetary Policy: The Reserve Bank of Australia (RBA) has maintained a relatively hawkish stance compared to other central banks. This has made the Australian Dollar less attractive to investors seeking higher yields. Global Risk Sentiment: The overall risk-off sentiment in the global market has also weighed on the Australian Dollar, as it is considered a risk-sensitive currency. Main Economic Events for next week: Retail Sales s.a. (MoM) (AUD) (July 30, 2024, 01:30): Measures the change in the total value of sales at the retail level in Australia, seasonally adjusted. Gross Domestic Product (QoQ) (EUR) (July 30, 2024, 08:00): Indicates the economic performance of the Eurozone by showing the growth rate of its GDP. Gross Domestic Product s.a. (QoQ) (EUR) (July 30, 2024, 09:00): Shows the GDP growth rate of the Eurozone, seasonally adjusted to remove effects of seasonal variations. Consumer Price Index (MoM) (EUR) (July 30, 2024, 12:00): Measures the change in the price of goods and services purchased by consumers in the Eurozone on a monthly basis. Consumer Price Index (YoY) (EUR) (July 30, 2024, 12:00): Measures the percentage change in the price of goods and services compared to the same month in the previous year.  ADP Employment Change (USD) (July 31, 2024, 12:15): Measures the monthly change in non-farm, private sector employment in the United States. Fed Interest Rate Decision (USD) (July 31, 2024, 18:00): The Federal Reserve announces its decision on the benchmark interest rate. BoE Interest Rate Decision (GBP) (August 1, 2024, 11:00): The Bank of England announces its decision on the official interest rate. BoE MPC Vote Rate Hike (GBP) (August 1, 2024, 11:00): Shows the voting results of the Monetary Policy Committee (MPC) members on whether to raise interest rates. Nonfarm Payrolls (USD) (August 2, 2024, 12:30): Measures the change in the number of employed people during the previous month, excluding the farming industry. The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff. The information does not constitute advice or a recommendation on any course of action and does not take into account your personal circumstances, financial situation, or individual needs. We strongly recommend you seek independent professional advice or conduct your own independent research before acting upon any information contained in this article.

Bitcoin cryptocurrency can be expected to rise further toward the next resistance level 68450.00 (top of the previous impulse wave 1). – Bitcoin reversed from support area – Likely to rise to resistance level 68450.00 Bitcoin cryptocurrency recently reversed up from the support area set between the key support level 64000.00 (former top of wave 4 from the start of July, as can be seen from the daily Bitcoin below) and the 38.2% Fibonacci correction of the upward impulse from the start of July. The upward reversal from this support area created the daily Japanese candlesticks reversal pattern Hammer – which stopped the previous minor correction 2. Given the improvement in the sentiment that can be seen across the cryptocurrency markets today, Bitcoin cryptocurrency can be expected to rise further toward the next resistance level 68450.00 (top of the previous impulse wave 1). Bitcoin Technical Analysis The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff. The information does not constitute advice or a recommendation on any course of action and does not take into account your personal circumstances, financial situation, or individual needs. We strongly recommend you seek independent professional advice or conduct your own independent research before acting upon any information contained in this article.

Japanese cryptocurrency exchange BitFlyer has completed the acquisition of the Japanese division of the defunct FTX trading platform. With plans to introduce crypto-based exchange-traded funds (ETFs), BitFlyer now owns 100% of FTX Japan’s outstanding shares, making it a wholly-owned subsidiary. Following the acquisition, the core business of FTX Japan is expected to pivot towards crypto asset management or custody services, specifically targeting institutional investors. Yuzo Kano, CEO of BitFlyer Holdings, announced that the new business will offer crypto custody solutions for institutional investors. “A company is needed that has the security technology to safely store the physical BTC that will serve as the ETF’s backing asset. Through our custody business, we aim to become a public service that serves as an industry infrastructure,” Kano stated. FTX Japan was among the numerous entities impacted by the collapse of FTX in November 2022. The exchange consistently maintained that its customers’ assets were not involved in FTX’s bankruptcy proceedings and successfully resumed withdrawals after reimbursing its customers in February 2023. FTX Japan’s parent company, FTX, faced a massive downfall just months after acquiring Japan’s crypto exchange Liquid and launching FTX Japan in early 2022. The acquisition of FTX Japan is seen as a step towards launching the first crypto ETFs in Japan. Citing the success of similar products in the United States, Kano said: “In the United States, the inflow of funds from institutional investors has accelerated since the listing of the Bitcoin ETF. I believe the day will come when ETFs will be listed in Japan,” he said. ETFs have influenced the price appreciation of underlying crypto assets. Bitcoin ETFs, for example, accounted for about 75% of new investments in Bitcoin as it surpassed the $50,000 mark earlier this year. Elsewhere, Franklin Templeton is partnering with SBI Holdings to form a new crypto ETF management company in Japan. This joint venture could lead to the launch of the first spot crypto ETF in Japan. A spokesperson from Franklin Templeton mentioned that the venture plans to offer a range of investment solutions, including existing ETFs, pending regulatory approval.

The Financial Conduct Authority has proposed new rules to help strengthen the UK’s capital markets. The measures cover new public offers and admissions to trading regime (POATR), new activity of operating a public offer platform, and proposals for the derivatives trading obligations. FCA proposes new derivatives trading obligations The package includes consultation outlining proposals for the derivatives trading obligations to help improve the regulation of secondary markets, reduce systemic risk and disruption to firms. The consultation supports the FCA’s commitment to strengthen the UK’s position in wholesale markets, as outlined in its Business Plan. The regulators’ proposals aim to improve the UK’s regulation of secondary markets, reduce systemic risk in derivatives markets, and avoid fragmentation and disruption for firms trading over-the-counter (OTC) derivatives subject to the DTO. The consultation will primarily be of interest to providers of post-trade risk reduction services, trading venues that admit to trading or trade derivatives, investment firms and banks dealing in derivatives, and UK branches of overseas firms undertaking investment services and activities. The proposals will also interest Approved Publication Arrangements (APAs), central counterparties (CCPs), law firms, consultancies, and their related trade associations. The FCA is asking for comments on this Consultation Paper (CP) by 30 September 2024. A summary of the FCA’s consultation paper CP24/14 The consultation paper “CP24/14: Consultation on the derivatives trading obligation and post-trade risk reduction services” from the Financial Conduct Authority (FCA) includes several key proposals: Inclusion of SOFR OIS in the Derivatives Trading Obligation (DTO): The proposal aims to include certain overnight index swaps (OIS) based on the US Secured Overnight Financing Rate (SOFR) within the classes of derivatives subject to the DTO. This change is intended to improve transparency in the OTC derivatives market in the UK and support G20 commitments. Expansion of Exemptions for Post-Trade Risk Reduction Services (PTRR): The proposal expands the list of PTRR services exempted from the DTO and other obligations. Currently, only portfolio compression is exempt. The new proposal includes portfolio rebalancing and basis risk optimization. This expansion aims to support firms’ risk management practices and reduce systemic risk in financial markets. Power to Suspend or Modify the DTO: The FCA proposes how it intends to use its power to suspend or modify the DTO after the expiration of the temporary transitional powers (TTP) at the end of 2024. This power is intended to prevent disruption in derivatives trading and ensure market stability. Key Objectives: Market Integrity and Stability: The proposals aim to enhance the stability and resilience of the UK’s OTC derivatives market by improving transparency and mitigating systemic risks. Reduction of Systemic Risk: Expanding exemptions for PTRR services is expected to reduce risk in swap markets, making the financial system more resilient. Alignment with Global Standards: Including SOFR OIS in the DTO aligns the UK’s regulations with global standards, particularly those in the US. Stakeholders: Primary Audience: Providers of PTRR services, trading venues, investment firms, banks dealing in derivatives, and UK branches of overseas firms. Additional Interested Parties: APAs, CCPs, law firms, consultancies, and related trade associations. Costs and Benefits: Cost-Benefit Analysis: The proposals are expected to have net benefits by improving liquidity, reducing execution costs, and enhancing market transparency. Long-Term Benefits: Increased use of PTRR services and inclusion of SOFR OIS in the DTO are expected to reduce systemic risk and improve market integrity. Timeline and Response: Consultation Period: Comments on the proposals are invited until 30 September 2024. Next Steps: Based on the feedback, the FCA will finalize the rules and publish the direction on the modification of the DTO in Q4 2024. These proposals are part of the FCA’s broader effort to strengthen the UK’s position in global wholesale markets as outlined in their Business Plan and the Wholesale Markets Review. “We need to strike the right balance between protection for investors and allowing capital markets to thrive” Sarah Pritchard, executive director of markets and international at the FCA said: “The package we have set out today, alongside our recent reforms to the listing rules, will help to strengthen the UK’s position in wholesale markets. We know we need to strike the right balance between protection for investors and allowing capital markets to thrive. “With that in mind, we have engaged extensively and broadly in developing the final set of rules to support a thriving investment research market. We are also setting out key reforms to the prospectus regime, and welcome engagement from the sector so that we can get the balance right before deciding the final regime. “Putting the right information in the hands of investors and removing unnecessary costs will help further bolster the market.” Proposals for new public offers and admissions to trading regime Key to the package are proposed rules to establish the new Public Offers and Admissions to Trading Regime (POATRs), which will replace the existing UK Prospectus Regulation. Under the proposals, companies will still be required to publish a prospectus when first admitting securities to public markets. However, a prospectus would not be required when a company raises further capital except in limited circumstances. Together with other existing disclosure obligations, these proposals will make sure investors get the information they need while significantly reducing the costs associated with further capital raises for companies. The FCA is also consulting on proposals for a new activity of operating a public offer platform. These platforms will offer an alternative route for companies to raise capital outside public markets including from retail investors. The introduction of the platforms should promote scale-up capital raising for smaller companies while ensuring that investors get the right disclosures on the key terms and risks of an investment. Final rules on new payment option for investment research The FCA has also confirmed new rules that give asset managers greater freedom in how they pay for investment research, by allowing the ‘bundling’ of payments for research and trade execution. These new rules aim to improve competition in the market for the benefit of investors. The new payment option is also compatible with rules in other jurisdictions, making it easier for asset managers to buy research across borders. The FCA has engaged extensively as part of developing these rules. Following careful consideration of responses to the consultation, significant changes have been made to the conditions attached to using the new payment option. The FCA wants to make sure it is operationally efficient to use and adaptable to different types of firms, but also make sure it secures an appropriate degree of protection for consumers, and there is not a return to historic poor practice in this area.

Bankrupt crypto lender BlockFi has received court approval to repay its customers and unsecured creditors. The US Bankruptcy Court for the District of New Jersey approved the company’s plan on Thursday, allowing BlockFi to repay 100% of customers’ funds. The crypto lender sought court approval to monetize $874.5 million in claims against FTX at a massive premium to their face value. The court’s approval means customers can now expect a full refund of their assets. In March, BlockFi reached an $874.5 million in-principle settlement with the FTX and Alameda Research estates, enabling the plan administrator to begin planning for subsequent distributions to creditors. This sale will facilitate a “near-term” final distribution of 100% of eligible customer and general unsecured creditor claims in fiat terms, the firm stated. The company stated that while the asset recovery cannot undo the effects of its financial crisis, efficiently “distributing 100% of claim value to clients in the near future will be an extraordinarily positive outcome.” The company indicated that the final distribution of assets to its U.S. customers could begin within 90 days. However, international clients might have a longer wait due to regulatory challenges. BlockFi explained that customers outside the U.S. will be informed in due time and may need to provide additional documentation to secure their assets in compliance with regulatory requirements in Bermuda. The company assured users that its Plan Administrator and Joint Liquidators are collaborating with relevant authorities to ensure a smooth distribution process for international customers. BlockFi shut down its web platform in May and then announced it would begin in-kind crypto distributions via Coinbase in July, processed in batches over the coming months. BlockFi clients’ fiat claims are not being processed by Coinbase. Instead, eligible cash distributions are handled by Kroll and its payment processing partner, Digital Disbursements. BlockFi initially paused customer withdrawals in November 2022, filing for Chapter 11 bankruptcy protection shortly after. In September 2023, the bankruptcy court approved BlockFi’s plan to repay its 10,000 creditors. BlockFi, as a centralized lender, provided interest-yielding deposit accounts and functioned similarly to a bank by loaning out user deposits to crypto industry clients. The sector suffered significant setbacks after a tumultuous 2022 for centralized crypto lending services, seeing the bankruptcy of several firms, including Celsius, Voyager Digital, and Genesis, following the collapse of the Terra ecosystem, FTX, and 3AC.

Vantage Markets has released the fifth episode of The Vantage View, “The Future of HealthTech”, featuring Arnaud Bauer, Partner at L.E.K. Consulting. “The Future of HealthTech” delves into the transformative potential of healthcare technology as well as its promising investment opportunities. The Vantage View video series is produced in collaboration with Bloomberg Media Studios and offers insightful financial analysis and perspectives. Healthcare data analytics market to reach $1.5-$2 billion by 2030 In the new episode, Arnaud Bauer discusses the rapid growth in healthcare data production, stating, “By 2025, the world is expected to produce 15,000 exabytes of healthcare data annually, versus only 2000 in 2020.” According to the research by L.E.K. Consulting, the healthcare industry alone accounts for approximately 30% of the world’s data volume. Additionally, the global healthcare data analytics market is projected to reach $1.5 to $2 billion by 2030. “Healthcare data is increasingly used by pharma and medtech companies to bring new innovations to market, monitor products with available evidence data, and is now being leveraged by tech and AI companies. The breadth and depth of data, its longitudinality, and the quality of underlying data are key factors driving its value,” Bauer said. Jack Kelly, Head of Sales at Vantage Australia, commented: “We’re thrilled to bring this episode to our audience, focusing on the exciting field of HealthTech. We aim to shed light on an evolving sector that holds immense promise. By exploring these opportunities, we hope to help investors understand the vast potential that lies at the intersection of healthcare and technology.” The Vantage View covered AI, space economy, circular economy, sustainable mobility Previous episodes of The Vantage View have explored topics like A.I., the space economy, the circular economy, and sustainable mobility, featuring insights from leaders such as Dr. Ayesha Khanna, Simon Gwozdz, Dr. Seeram Ramakrishna, and Andrey Berdichevskiy. “The Future of the Space Economy” explores the evolution and investment opportunities of the space economy and is hosted by Simon Gwozdz, CEO & Founder of Equatorial Space Systems, a prominent figure in the space industry. Simon Gwozdz highlights the potential for significant returns despite longer maturity periods and the democratization of space with the rise of accessible space tourism and in-space resource prospecting. Projections for the space economy, with figures pointing to immense growth potential and lucrative opportunities for investors and stakeholders, are also featured in the episode: the Satellite Data Services Market is expected to reach £25.3 billion by 2030 and the Space Mining Market is forecasted to hit £12.1 billion by 2037. Its third episode focused on sustainable mobility, particularly on the electrification of transportation in Asia and its investment prospects, shedding light on various investment opportunities within the EV supply chain, encompassing raw materials, battery technology, and charging infrastructure, showcasing Asia’s dynamic and evolving electric mobility landscape. In January, the multi-asset broker launched an episode focused on the circular economy featuring Dr. Seeram Ramakrishna, a Professor and Director at the Centre for Nanotechnology and Sustainability, National University of Singapore. Dr. Ramakrishna contrasts the traditional linear economy with the circular economy, highlighting the latter’s societal benefits. He discusses how the financial sector is increasingly adopting circular practices to diversify and reduce long-term risks. Additionally, the episode provides insights for retail investors on how to contribute to the circular economy. It was in Q3 2023 that Vantage announced the production of “The Vantage View” in partnership with Bloomberg Media Studios. The video series promises to bring authoritative opinions and expert commentary to a broad audience every quarter, featuring a range of experts discussing a variety of pressing political-economic issues. Topics will span from the geopolitical consequences of climate change policies to the role of technological innovations, such as Artificial Intelligence, in financial markets. The video series aims to be a go-to source for diverse viewers, including investors, professionals, and those keen on understanding the complexities of the global economic landscape.

Trovata has partnered with State Street to enable joint clients to access Fund Connect as a third-party investing and trading tool with access to over 25 leading fund managers, from the Trovata platform. Fund Connect is a part of GlobalLink, State Street’s global suite of electronic trading platforms that offer a single interface for managing short-term liquidity through an innovative electronic trading solution. Fund Connect supports multiple money market account structures, including fully disclosed, omnibus, and nominee, all of which can be used in various combinations through a single login. Trovata makes it easy for businesses to automate cash reporting, forecasting, analysis, and money movement. Determine liquidity needs with Trovata and invest excess cash with Fund Connect Understanding a company’s cash position to invest excess cash has historically been a challenging, disparate process for treasury and finance professionals. Often they are collecting bank files, aggregating and normalizing data, and building reports in spreadsheets. This is hours of manual work to gain visibility, all before logging into an investments portal to take action. Trovata digitally transforms the treasury function, leveraging bank APIs, AI, and automation to offer real-time reporting and forecasting. Armed with this intelligence, companies can now take quick action to invest with Fund Connect, all within a single interface. The integration will allow finance and corporate treasury teams to determine liquidity needs, and then seamlessly invest excess cash with Fund Connect, all in just a few clicks. Brett Turner, Founder & CEO of Trovata, said: “Trovata makes it easy to determine with precision, how much cash you need to run your business and how much cash you can invest to earn interest income. Finance and treasury teams need a combined solution that’s quick to stand up, seamless to use, while maintaining full visibility and control. Trovata gives State Street clients a refreshingly modern front end to corporate investing.” Greg Fortuna, Head of GlobalLink, said: “The integration of Fund Connect and Trovata will combine expertise in fund management with innovative technology to provide investors with unparalleled insights, seamless connectivity and data to help clients optimize their financial strategies.”

CME Group has plans to launch Adjusted Interest Rate S&P 500 (AIR) Total Return (SOFR) futures on August 26. AIR Total Return futures on U.S. indices are designed to provide total return exposure with an overnight floating rate built in. The model for the new AIR S&P 500 Total Return futures remains the same; however, the new product will use the Secured Overnight Financing Rate (SOFR) as the embedded rate instead of the current Effective Federal Funds Rate (EFFR). “The preferred industry benchmark rate for short-term U.S. overnight financing” AIR Total Return futures, based on the EFFR, are available across a range of major global indices – S&P 500, Nasdaq-100, Russell 1000, Russell 2000, Dow Jones Industrial Average, and the FTSE 100. Paul Woolman, Global Head of Equity Index Products at CME Group, said: “As SOFR has become the preferred industry benchmark rate for short-term U.S. overnight financing, the addition of a SOFR-based AIR TRF contract will complement our current offerings and provide additional flexibility for managing swap exposure. Year-to-date, we have seen record average daily volume of 9,800 contracts in our existing suite of AIR Total Return futures, up more than 113% year-over-year, underscoring the demand for effective and cost-efficient alternatives to OTC equivalents.” CME Group launched SOFR futures in May 2018. The product has since become the leading tool for hedging short-term interest rates, with a year-to-date average daily volume of 3.3 million contracts. Building on the growth and liquidity of the existing AIR TRF suite, these new SOFR-based contracts will combine the risk management strengths of CME Group’s Equity Index and Interest Rate franchises.

The Securities and Exchange Commission has charged Babu Ramaraj with defrauding more than 70 investors of approximately $31 million. The U.S. Attorney’s Office for the Eastern District of Virginia is pursuing criminal charges against Ramaraj for wire fraud and unlawful monetary transactions.  “Promise of 40-60 percent annual investment returns” Through his company, DAB Inspection and Consulting Services LLC, Ramaraj allegedly solicited and lured his victims with the promise of 40-60 percent annual investment returns. From February 2019 through May 2024, falsely told investors that he would use their funds to finance surety and performance bonds for large-scale, lucrative contracts DAB had been awarded to provide quality assurance services to state and local governments, the SEC alleges. The SEC alleges that, in reality, Babu Ramaraj created fake contracts and financial documentation to support his misrepresentations and used investor funds to purchase luxury automobiles, jewelry, and property, engage in unprofitable options trading, and pay earlier investors. Scott A. Thompson, Associate Director of Enforcement in the SEC’s Philadelphia Regional Office, said: “As we allege, Ramaraj promised his investors unrealistic returns from government contracts he never had and then used their money to fund his own lifestyle and to make Ponzi-like payments to maintain the deception. We will continue to hold accountable those who exploit investors’ trust for personal gain.”