Overview of the financial market - May 20, 2024 #NEWS
1. The NZD is waiting for an interest rate decision from the RBNZ to continue to increase in price. Westpac and BNZ predict the NZDUSD exchange rate could reach 0.62 by the end of June. However, expectations of a 47 basis point interest rate cut could affect this upward momentum.
2. XAUUSD hits a new record on expectations the Fed will cut interest rates this year. The dollar fell and Treasury bonds rose after April inflation fell more than expected, supporting gold prices. Silver is also trading near an 11-year high due to tight supply.
3. Investment company Western Asset predicts that the BOJ will change policy, increasing the value of ultra-long-term bonds. They believe the yield curve will flatten as the BOJ reduces bond purchases, and predict another rate hike this year, possibly in the fall.
4. G-7 central banks are preparing for June with slowing inflation data. Britain, Canada and Japan have published price data, and the ECB will publish a wage index. The Fed will release meeting minutes, while New Zealand to Türkiye maintain stable interest rates.
5. Kraken clarifies that it currently has no plans to phase out USDT to comply with European Mica laws. Like other exchanges, Kraken will cooperate with European regulators and do its best to keep USDT on their exchanges in Europe.
Mica's new regulations require stablecoin issuers to have an electronic money transfer license, or partner with local banks, and require a percentage of the cash to reside in European banks. This has a big impact because stablecoin issuers invest money in government bonds to generate returns.
This will affect both USDT and USDC and the like.
6. 🔥Gemini said that about 97% of the initial debt amount will be repaid by the end of May and refunded in Crypto, meaning customers who deposited 1 bitcoin into Gemini Earn will receive that 1 Bitcoin back, instead of the price. USD value.
This is different from FTX, when they decided to pay in USD the value of Crypto on the day of bankruptcy filing.
