Articles
Coinbase sues SEC, FDIC over claims of non-compliance with FOIA
398836 June 28, 2024 05:21 FXStreet Market News
- Coinbase filed a lawsuit against the US SEC and FDIC in a district court in Washington.
- Coinbase alleged that the agencies failed to comply with FOIA.Â
- Coinbase’s suit follows Consensys’ earlier lawsuit against the SEC over its position on Ethereum 2.0 and MetaMask wallet.
Coinbase filed a lawsuit on Thursday in the Washington, DC District Court against the US Securities and Exchange Commission (SEC) and Federal Deposit Insurance Corporation (FDIC), claiming that both regulators have refused to release information concerning crypto regulations.
Coinbase demands US regulators’ accountability, files lawsuits
Crypto exchange Coinbase went on the offensive on Thursday following its lawsuits against the US SEC and FDIC.
The lawsuits, filed in a district court in Washington DC, alleged that both regulators have refused to provide key information requested by the exchange.
Coinbase said it requested information, in line with the Freedom Of Information Act (FOIA), concerning some actions the SEC and FDIC took.
FOIA is an act that gives an individual or organization the right to access government information freely. CoinbaseÂ’s lawsuits alleged that the exchange sent requests to both regulators and has yet to receive replies for over a year.
“Today we filed lawsuits under the Freedom of Information Act for requests we made over a year ago seeking important information to which we, and the public, are entitled,” said Coinbase Chief Legal Officer Paul Grewal.Â
The exchange requested the SEC provide clear information regarding several investigations it had made beginning in 2018. These investigations include Ethereum 2.0, which the SEC dropped earlier in the month.
Consensys had earlier filed a lawsuit against the SEC, claiming the agency attempted an “unlawful power grab over Ethereum” and stating its MetaMask isn’t a securities or broker platform.
Coinbase also requested the FDIC reveal the letters it sent to banks and financial institutions to pause crypto-related transactions indefinitely.
Claiming that both regulators refused to answer to the FOIA, Coinbase moved to file lawsuits, alleging that “financial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry.”
Crypto community members have speculated that the lawsuit may help in providing clarity regarding digital assets regulations.
Full Article
Another mixed session for commodities
398835 June 28, 2024 05:17 Forexlive Latest News Market News
It’s been another mixed session for commodities.
Energy: oil saw decent upside trading higher by over 1% while natgas was down by about the same percentage.
Precious metals: saw gold and silver put in a decent bounce while platinum trades lower by over 2%.
Commodities performance
It’s been a challenge getting a solid read on commodities in the past few weeks, with a lot of drivers in the mix but also conflicting ones at the same time.
Copper and oil is a good example, where both have constructive supply outlooks, as well as a question mark about demand with the recent US and China data. However, between these two it would seem that only copper is reflecting a concern for demand, while oil hasn’t paid much attention to that with it’s recent rally.
Copper and oil comparison
Gold is another one that’s been challenging to pin down on the fundamental side. We saw a solid bounce from key support around 2300 yesterday, but I have very low conviction in the sustainability of either upside or downside.
Gold bounces from 2300 level
For gold it’s also worth keeping positioning in mind with very stretched long positioning at the moment. This of course doesn’t mean price will push lower, but it does make the risk to reward of chasing higher a bit unattractive.
gold positioning stretched
Was a relatively calm session for the big 7
398834 June 28, 2024 04:56 Forexlive Latest News Market News
The big 7 finished mostly higher across the board (apart from Nvidia which was down 1.9%) with Amazon finishing up over 2% on the day with Meta in second place at 1.2%.
Big 7 performance
However, the chart of intraday performance tells us everything we need to know. Messy and rangebound price action across the board.
Not too surprising given the type of week we are in right now with quarter-end flows and politics in the mix. Apart from that it’s been a pretty boring week on the US side in terms of data, with attention shifting towards next week’s fresh batch of big data coming up.
Big 7 chart performance
USD/JPY Price Analysis: Looms near multi-year highs as bulls target 161.00
398832 June 28, 2024 04:51 FXStreet Market News
- USD/JPY registers minimal loss after hitting a daily low of 160.28.
- Technical outlook shows uptrend intact, with RSI in overbought conditions indicating strong buying momentum.
- Key resistance levels: psychological 161.00 and 162.00, followed by November 1986 high of 164.87 and April 1986 high of 178.
- Key support levels: Tenkan-Sen at 159.01, June 24 low of 158.75, Senkou Span A at 158.36, and Kijun-Sen at 157.70.
The USD/JPY registers minimal loss after hitting a daily low of 160.28, yet the major remains approaching the 161.00 figure for the second consecutive day as the Japanese authority’s verbal jawboning has failed to contain the YenÂ’s depreciation. The pair trades at 160.77, down 0.03%.
USD/JPY Price Analysis: Technical outlook
The USD/JPY uptrend remains intact, yet traders remain cautions after they reclaimed the psychological 160.00 figure, seen as the first line of defense for Japanese authorities to intervene in the FX markets. However, the pair continued to advance steadily, although the risks of an intervention grew.
Momentum favors buyers, with the Relative Strength Index (RSI) at overbought conditions. However, due to the strength of the uptrend, most technicians use 80 as “extreme” overextended conditions.
That said, the USD/JPY first resistance would be the psychological levels of 161.00, 162.00, and so forth, ahead of testing NovemberÂ’s 1986 high of 164.87, followed by April’s 1986 high of 178.
Conversely, if USD/JPY drops below 160.00, the first support would be the Tenkan-Sen at 159.01, followed by JuneÂ’s 24 low of 158.75. Once those levels are cleared, the next stop would be the Senkou Span A at 158.36 and then the Kijun-Sen at 157.70.
USD/JPY Price Action – Daily Chart
Japanese Yen PRICE Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Swiss Franc.
| Â | USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|---|
| USD | Â | -0.23% | -0.15% | -0.03% | -0.05% | -0.02% | -0.04% | 0.14% |
| EUR | 0.23% | Â | 0.06% | 0.17% | 0.16% | 0.23% | 0.16% | 0.36% |
| GBP | 0.15% | -0.06% | Â | 0.14% | 0.10% | 0.16% | 0.12% | 0.31% |
| JPY | 0.03% | -0.17% | -0.14% | Â | -0.02% | 0.00% | -0.05% | 0.18% |
| CAD | 0.05% | -0.16% | -0.10% | 0.02% | Â | 0.02% | 0.00% | 0.19% |
| AUD | 0.02% | -0.23% | -0.16% | -0.01% | -0.02% | Â | -0.02% | 0.15% |
| NZD | 0.04% | -0.16% | -0.12% | 0.05% | -0.01% | 0.02% | Â | 0.18% |
| CHF | -0.14% | -0.36% | -0.31% | -0.18% | -0.19% | -0.15% | -0.18% | Â |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
Fed’s Bowman: inflation should ease with current Fed policy
398829 June 28, 2024 04:33 FXStreet Market News
Federal Reserve (Fed) Board of Governors member Michelle Bowman noted on Thursday that while current Fed policies should be enough to drag inflation back to target, the Fed shouldn’t be unwilling to weigh further rate cuts in inflation data proves sticky.
Key highlights
Full ArticleI am still willing to raise rates again if inflation doesnÂ’t ease.
The Fed not at point yet where it can consider rate cut.
If inflation moves toward 2%, eventual rate cut is on the table.
Lack of new bank creation will create financial issues.
Economy strong but activity has moderated.
I am concerned by the decline in the number of US banks.
Upside risks to inflation persist.
I expect only modest progress on lower inflation this year.
Easier financial conditions could drive up inflation.
I remain cautious in weighing future Fed rate changes.
Tokens to watch out for as Biden and Trump square off in Presidential debate
398828 June 28, 2024 04:13 FXStreet Market News
- Crypto industry players are lobbying for discussions around cryptocurrency in the debate tonight.
- Bitcoin could see a brief rally if Trump or Biden talk about the crypto industry.
- MAGA and BODEN political meme coins are key tokens to observe as debate unfolds.
As the US Presidential debate between Republican candidate Donald Trump and Democratic President Joe Biden kicks off on Thursday, investors are watching for a potential rally in several tokens.
These tokens could rally following Presidential debate
Speculations have made the rounds on social media platform X that crypto industry players are lobbying for discussions regarding cryptocurrencies in the debate tonight.
I have a stinking suspicion that crypto will be mentioned during the Presidential debate. Why? Because voters want to see America retain its leadership and edge in technology and innovation. And the fact that we are even talking about this demonstrates the continued mainstreamingÂ…
— Christopher Perkins NYC (@perkinscr97) June 27, 2024
Below are some of the coins that you may want to keep an eye on:
Bitcoin (BTC) – The number one cryptocurrency has been struggling to see a leg up in the past few days, with FUD from potential Mt. Gox creditors’ sale next week saturating the market. Additionally, large BTC transfers from the US and German governments to exchanges have further dampened investors’ confidence.
However, investors are keeping an eye out on whether Trump would address issues around Bitcoin today, especially considering his recent positive attitude toward the top cryptocurrency. On the other hand, a potential Biden support for crypto could also send Bitcoin and the crypto market, by extension, into a brief rally.
TRUMP (MAGA) – The Donald Trump-themed meme coin has rallied more than 16% in the past 24 hours as the debate draws closer. This follows bets in the crypto prediction market Polymarket that there’s a 70% chance that Trump mentions MAGA during the debate.
Jeo Boden (BODEN) – The President Joe Biden-themed meme coin is down by almost 13% on Thursday. However, BODEN is looking to offset the loss as it’s up by about 4% in the past two hours. Polymarket bettors have also opened several predictions around potential mentions of BODEN in the debate tonight.
TREMP – Another Trump-themed meme coin could be another key token to watch out for.
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XRP struggles under $0.47, Ripple holders capitulate for ninth consecutive day
398823 June 28, 2024 03:41 FXStreet Market News
- Ripple holders realized losses on their XRP tokens for the ninth consecutive day on Thursday.Â
- Traders have taken over $41 million in losses since June 18, according to Santiment data.
- XRP hovers around $0.47, wiping out over 5% in value in the past seven days.Â
Ripple (XRP) holds the recent decline at around $0.47 on Thursday. On-chain data shows that different cohorts of XRP investors reacted differently to the price decline, with whales holding between 1 million and 10 million XRP distributing their token holdings at a loss.Â
Typically, an asset is expected to recover after a capitulation.Â
Daily digest market movers: Ripple on-chain data shows traders are realizing losses
- Ripple on-chain data from tracker Santiment shows that XRP investors took over $41 million in unrealized losses between June 18 and June 27, as shown in the chart below.Â
- The negative spikes in the Network Realized Profit/oLss metric show the losses taken by XRP traders in the past nine days. Consistent realization of losses by traders is considered typical of a capitulation.Â
Network realized profit/ loss vs. price
- Different segments of XRP investors reacted differently to the price decline. Wallet addresses holding between 10,000 and 100,000 XRP tokens and 100,000 and 1 million coins accumulated the asset, buying the dip.Â
- The group of investors holding between 1 million and 10 million XRP distributed their holdings at a loss. Typically, this segment is associated with capitulation prior to recovery in the assetÂ’s price, as seen in the chart below.
XRP supply distributionÂ
- In the absence of an update in the SEC vs. Ripple lawsuit, traders are watching Bitcoin price trends for cues to determine where XRP is headed.Â
- XRP is hovering around $0.47, down nearly 5% in the past seven days.
Technical analysis: Ripple likely to extend losses by 3.5%
Ripple is in a downward trend, hovering around the $0.47 level on Thursday. If the decline resumes, XRP is likely to touch support at $0.4508, the June 7 low. In the event of a recovery in the altcoinÂ’s price, XRP could fill the Fair Value Gap between $0.4731 and $0.4710 before resuming its downward trend.Â
The Moving Average Convergence Divergence (MACD) indicator supports the bearish thesis, with the signal line crossing above the MACD line and the red histogram bars under the neutral line. There is underlying negative momentum in RippleÂ’s price trend.Â
XRP/USDT daily chartÂ
RippleÂ’s close above the Fair Value Gap between $0.4825 and $0.4841 could invalidate the bearish thesis and push XRP higher toward the resistance at $0.4955.Â
SEC vs Ripple lawsuit FAQs
It depends on the transaction, according to a court ruling released on July 14: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.
The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales arenÂ’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.
The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of RippleÂ’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.
The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.
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Banxico keeps rates at 11.00%, Peso continues to depreciate
398821 June 28, 2024 03:35 FXStreet Market News
- Banxico holds interest rate at 11.00%; Deputy Gov. Mejia Castelazo votes for 25 bps cut.
- Officials cite financial market volatility and unique economic factors in Mexico.
- USD/MXN dips to 18.35 post-Banxico, then climbs, gaining 0.42%.
On Thursday, the Bank of Mexico (Banxico) decided to hold the overnight interbank interest rate at 11.00%, as expected by most market participants. However, the decision was not unanimous, with Deputy Governor Omar Mejia Castelazo’s 25-basis-point rate cut vote potentially having a significant impact.
Banxico’s unanimous decision  fails to underpin the Mexican Peso
Banxico policymakers mentioned that Mexico’s financial markets were volatile and affected by “idiosyncratic factors.” Consequently, MexicoÂ’s Government bond yields rose, and the Peso depreciated.
Officials mentioned that the disinflation process is expected to continue, adding that “the board foresees that the inflationary environment may allow for discussing reference rate adjustments.”
They acknowledged that the Mexican Peso depreciation impacted inflation forecasts, which were offset by weaker economic activity; however, the inflation risks balance remains skewed to the upside.
USD/MXN Reaction to BanxicoÂ’s Decision
The USD/MXN retreated to 18.35, before resuming its ongoing uptrend, with momentum favoring buyers, as depicted by the Relative Strength Index (RSI) in the hourly chart. The exotic pair trades with gains of 0.42%.
Banxico FAQs
The Bank of Mexico, also known as Banxico, is the country’s central bank. Its mission is to preserve the value of Mexico’s currency, the Mexican Peso (MXN), and to set the monetary policy. To this end, its main objective is to maintain low and stable inflation within target levels – at or close to its target of 3%, the midpoint in a tolerance band of between 2% and 4%.
The main tool of the Banxico to guide monetary policy is by setting interest rates. When inflation is above target, the bank will attempt to tame it by raising rates, making it more expensive for households and businesses to borrow money and thus cooling the economy. Higher interest rates are generally positive for the Mexican Peso (MXN) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken MXN. The rate differential with the USD, or how the Banxico is expected to set interest rates compared with the US Federal Reserve (Fed), is a key factor.
Banxico meets eight times a year, and its monetary policy is greatly influenced by decisions of the US Federal Reserve (Fed). Therefore, the central bankÂ’s decision-making committee usually gathers a week after the Fed. In doing so, Banxico reacts and sometimes anticipates monetary policy measures set by the Federal Reserve. For example, after the Covid-19 pandemic, before the Fed raised rates, Banxico did it first in an attempt to diminish the chances of a substantial depreciation of the Mexican Peso (MXN) and to prevent capital outflows that could destabilize the country.