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Forexlive Americas FX news wrap: USD/JPY breaks 160.00 and keeps on rising
398468 June 27, 2024 04:34 Forexlive Latest News Market News
Markets:
- Gold down $21 to $2298
- WTI crude oil down 19-cents to $80.64
- US 10-year yields up 8.2 bps to 4.32%
- S&P 500 up 0.2%
- AUD leads, JPY lags
It was a lively day in the FX market with the US dollar leading the way.
The Australian and Canadian inflation reports this week got some attention but the main market takeaway is that similarly sticky inflation could be coming to the US, especially with the PCE report due on Friday. Bonds sold off and the higher yields helped the US dollar and created some risk aversion in equities.
The dollar was broadly higher and particularly strong against the yen. Some strong verbal intervention from Kanda tried to counter the move above 160.00 but he also said there wasn’t a particular level they were watching. Some in the market took that as an invitation to press the pair to 160.82 and up more than 100 pips on the day.
That’s a dangerous dance and Tokyo will be waking up soon so that’s certainly a chart to keep on the screen.
It wasn’t just the yen that fell cable hit a six-week low and the euro sagged. It was all part of a broad US dollar bid. The mystery is whether quarter-end considerations are driving a portion of the move or if there is a fundamental backing.
Tech stocks remain volatile but the bulls got a late-day win as a 2% decline in NVDA shares turned into a slight gain. However after the close, shares of Micron were beaten up after earnings.
Shiba Inu price poised for 18% rally after three-month-long downtrend
398464 June 27, 2024 04:33 FXStreet Market News
- Shiba Inu price finds support around $0.00001694 the 200-week Exponential Moving Average.
- On-chain data shows SHIBÂ’s capitulation event occurred on June 24 and is poised for a rally.
- A weekly candlestick close below $0.00001690 would invalidate the bullish thesis.
Shiba Inu (SHIB) price found support at the 200-week Exponential Moving Average and is currently trading up 2.3% on Wednesday. On-chain data indicates SHIB experienced a capitulation event on June 24, with supply on exchanges decreasing, suggesting bullish momentum could drive SHIB’s price higher in the coming days.
Shiba Inu price shows promiseÂ
Shiba Inu price found support at the 200-week Exponential Moving Average (EMA) around the $0.00001694 level and is currently trading at $0.00001757, 2.3% above it on Wednesday.
The 200-week Exponential Moving Average roughly coincides with the weekly support level of $0.00001690, considered a key support level.
If this support level holds, SHIB could rally 18% to retest its resistance level at $0.0000208, the 61.8% Fibonacci retracement level drawn from the weekly swing low of $0.0000054 from June 5, 2023, to the weekly swing high of $0.00004575 from March 4, 2024.
The Relative Strength Index (RSI) on the weekly chart has briefly slipped below the 50 mean level, while the Awesome Oscillator (AO) is on its way to doing the same. If bulls are indeed making a comeback, then both momentum indicators must maintain their positions above their respective mean levels. Such a development would add a tailwind to the recovery rally.
SHIB/USDT weekly chart
Based on IntoTheBlock’s Global In/Out of the Money (GIOM), nearly 60,110 addresses accumulated 58.85 trillion SHIB tokens at an average price of $0.000016.These addresses bought the dog-based meme token between $0.000014 and $0.000017, which makes it a key support zone. These investors will likely add more to their holdings if the price retraces.
Interestingly, the $0.000014 to $0.000017 zone mentioned from a technical analysis perspective coincides with the GIOM findings, making this zone a key reversal zone to watch.
SHIB GIOM chart
On-chain data provider SantimentÂ’s Network Realized Profit/Loss (NPL) indicator computes a daily network-level Return On Investment (ROI) based on the coinÂ’s on-chain transaction volume. Simply put, it is used to measure market pain. Strong spikes in a coinÂ’s NPL indicate that its holders are, on average, selling their bags at a significant profit. On the other hand, strong dips imply that the coinÂ’s holders are, on average, realizing losses, suggesting panic sell-offs and investor capitulation.Â
In SHIBÂ’s case, the NPL indicator dipped to -1.85 million and -15.08 million on June 23 and 24, coinciding with a 5.28% price decline. This negative downtick indicates that the holders were, on average, realizing losses.
During this capitulation event, the SHIBÂ’s supply on exchanges declined from 73.15 million to 72.5 million in two days. This decrease in supply on exchanges indicates that investors are moving SHIB tokens to wallets and reducing selling activity, signaling a bullish outlook and further denoting investor confidence in Shiba Inu.
SHIB Network Realized Profit/Loss and Supply on Exchanges chart
Even though the on-chain metric and technical analysis point to a bullish outlook, if SHIBÂ’s weekly candlestick closes below $0.00001690, the weekly support level, this move would invalidate the bullish thesis by producing a lower low on a weekly timeframe. This development could see Shiba InuÂ’s price fall 16% to the next weekly support level of $0.00001430.
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Canadian Dollar mixed on Wednesday as markets await key data later in the week
398461 June 27, 2024 04:12 FXStreet Market News
- Canadian Dollar gave a mixed performance, easing against the Greenback.
- Canada reported a potential contraction in wholesale trade in May.
- Fedspeak to continue dominating headlines until high impact data late in the week.
The Canadian Dollar (CAD) is mixed on Wednesday, giving a mediocre performance and settling lower against the US Dollar as Fedspeak continues to weigh on investor focus. Markets await a slew of key economic figures due in the back half of the trading week.Â
US Durable Goods Orders, Initial Jobless Claims, and US Gross Domestic Product (GDP) figures all slated for Thursday. Friday will follow up with Canadian MoM GDP and US Personal Consumption Expenditure Price Index (PCE) inflation for the month of May.
Statistics Canada (Statscan) warned of a contraction in wholesale trade activities in May, which follows a moderate increase in AprilÂ’s figures. The Statscan flash estimate is a preview of the final figure that will be published on July 15.
Daily digest market movers: Canadian Dollar churns on Wednesday, eases against Greenback
- Canadian Wholesale Sales likely contracted by 0.9% in May, according to a Statscan flash estimate.
- A decline in upstream business activity will put renewed pressure on FridayÂ’s upcoming Canadian GDP print, which is forecast to rise to 0.3% MoM in April after the previous 0.0%.
- US New Home Sales in May also declined on Wednesday, coming in at -11.3% MoM. This is the sharpest downside correction since July 2022 as housing activity remains subdued.
- US Bank Stress Test information is due later on Wednesday.
- Markets look ahead to ThursdayÂ’s US GDP revision for the first quarter, which is expected to hold steady at 1.3% QoQ.
Canadian Dollar price today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Japanese Yen.
| Â | USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF |
| USD | Â | 0.22% | 0.41% | 0.26% | -0.09% | 0.61% | 0.61% | 0.21% |
| EUR | -0.22% | Â | 0.19% | 0.04% | -0.31% | 0.41% | 0.40% | 0.00% |
| GBP | -0.41% | -0.19% | Â | -0.16% | -0.49% | 0.22% | 0.20% | -0.16% |
| CAD | -0.26% | -0.04% | 0.15% | Â | -0.34% | 0.37% | 0.36% | -0.02% |
| AUD | 0.09% | 0.30% | 0.48% | 0.34% | Â | 0.71% | 0.71% | 0.35% |
| JPY | -0.62% | -0.41% | -0.22% | -0.38% | -0.71% | Â | -0.01% | -0.41% |
| NZD | -0.62% | -0.40% | -0.21% | -0.36% | -0.72% | 0.03% | Â | -0.37% |
| CHF | -0.24% | -0.02% | 0.17% | 0.02% | -0.32% | 0.39% | 0.39% | 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 Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Technical analysis: Canadian Dollar slumps back to 1.3700 against Greenback
The Canadian Dollar (CAD) was mixed on Wednesday. It rose around four-tenths of one percent against the Japanese Yen and the New Zealand Dollar. However, it shed a third of a percent against the Australian Dollar and backslid a quarter of a percent against the US Dollar.
USD/CAD rose to the 1.3700 handle on Wednesday as the Canadian Dollar recedes against the Greenback. The pair briefly set a multi-week low this week before returning to a familiar congestion zone.
Intraday price action is hung up on the 200-hour Exponential Moving Average (EMA) at 1.3692, and daily candlesticks have snapped a near-term losing streak. The 50-day EMA at 1.3675 provides technical support, and the pair continues to grind out a medium-term consolidation pattern north of the 200-day EMA at 1.3582.
USD/CAD hourly chart
USD/CAD daily chart
Canadian Dollar FAQs
The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.
The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.
The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is CanadaÂ’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.
While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in CanadaÂ’s case is the Canadian Dollar.
Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.
US Dollar climbs to multi-week highs in over a month as US Treasury yields increase
398460 June 27, 2024 04:09 FXStreet Market News
- US Dollar extended recovery to Wednesday, reaching 106.00, its highest level since early May.
- Rising US Treasury yields lent support to the US currency.
- Week’s highlight remains JuneÂ’s PCE inflation data due on Friday.
WednesdayÂ’s session witnessed the US Dollar, as represented by the Dollar Index (DXY), climb to 106.00, a level last observed in early May.
The economic landscape in the US continues to portray resilience. A few signals of disinflation are noticeable, but it still holds on which makes the Federal Reserve (Fed) not fully embrace the easing cycle.
Daily digest market movers: US Dollar elevated by rising Treasury yields, eyes on PCE
- Wednesday’s standout data was the New Home Sales for May, which demonstrated a decline of about 11.3% to 619K units from 698K units in the prior release and beneath the 640K expected.
- Simultaneously, US Treasury yields are rising, with the 2, 5 and 10-year rates reported at 4.74%, 4.33%, and 4.31%, respectively.
- Expectations of a potential Fed rate cut in September continue to be high, odds from CME Fedwatch Tool are 60% for 25 bps cut.
- Thursday holds the Gross Domestic Product (GDP) revision for Q1, which is anticipated to hold steady at 1.3%.
- Friday’s significant event will still be the May Personal Consumption Expenditures (PCE) report, an inflation gauge favored by the Fed.
- Both headline and core PCE are projected to soften to 2.6% YoY, dropping from 2.7% and 2.8%, respectively, in April.
DXY technical analysis: Bullish momentum continues, index aims high
The technical outlook remains solidly optimistic with indicators firmly in the green. The Relative Strength Index (RSI) preserves a level above 50, while green bars are developing in the Moving Average Convergence Divergence (MACD), suggesting a gathering of strength among bulls. The progressive incline of these indicators demonstrating that the DXY may be preparing for additional upside.
Furthermore, the DXY Index maintains a standing position above the 20, 100 and 200-day Simple Moving Averages (SMAs), confirming a persistently positive outlook. With the Index reaching levels not seen since early May and with indicators showing a propensity for further increment, the DXY is oriented toward further gains. The 106.50 level is the next target for bulls.
Inflation FAQs
Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%.
The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls.
Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money.
Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.
USD/CHF extends gains on rising Treasury Yields
398458 June 27, 2024 04:05 FXStreet Market News
- USD/CHF surges, hitting highs not seen since mid-June and testing the crucial 100-day SMA at 0.8975.
- The strength of USD remained persistent, largely due to elevated Treasury yields.
- Market still bets on a 60% probability of a Fed rate cut in September.
The USD/CHF pair continued to benefit from rising US Treasury yields on Wednesday and shrugged off soft housing data. The Swiss economic calendar remained barren during the session, leaving the pair at the mercy of broader market trends and data from the US.
The latest New Home Sales figures for May took a hit, with the sales sinking to 619K units, causing an approximate 11.3% decrease from the former 698K, catching the market off-guard, as the expectation was set at a more favorable 640K units. Concurrently, the US 2-year, 5-year, and 10-year Treasury yields were reported at 4.74%, 4.33%, and 4.31% respectively, fostering USD attractiveness.
Even though the market suggests a 60% probability for a Fed rate cut of 25 basis points in September as gauged by the CME FedWatch Tool, the Federal Reserve’s hinted at only one cut in 2024. Fed officials, including Governor Michelle Bowman, have asserted their hawkish stance, voicing opinions that a policy rate cut, at this juncture, may be premature. Moreover, significant economic events likely to affect the market expectations include the release of the revisions to the Gross Domestic Product (GDP) for Q1, expected to hold steady at 1.3% on Thursday, and the release of the May Personal Consumption Expenditures (PCE) report on Friday, the FedÂ’s preferred gauge of inflation.
USD/CHF technical analysis
From a technical analysis perspective, the pair’s positioning indicates encouraging signs, having successfully established itself above the 20-day and 200-day SMA and vying to negotiate the 100-day average, which if accomplished might solidify its positive outlook. In addition, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) rose to positive terrain, adding more arguments for the positive outlook.
USD/CHF daily chart
Crude Oil roils on Wednesday after EIA prints another weekly buildup in US Crude Oil Stocks
398454 June 27, 2024 03:56 FXStreet Market News
- WTI eased to $80.00 per barrel on Wednesday, continues to churn in a rough range.
- EIA Crude Oil counts reported another week-on-week buildup of US barrel supplies.
- Energy markets continue to hope for a demand upswell to materialize in summer.
West Texas Intermediate (WTI) US Crude Oil tumbled back to $80.00 per barrel on Wednesday after the Energy Information Administration (EIA) reported another unexpected increase in week-on-week US Crude Oil Stocks Change, kicking the legs out from beneath barrel traders that were hoping for a net decrease in US Crude Oil supplies.
According to the EIA, US Crude Oil Stocks Change piled on an additional 3.591 million barrels of Crude Oil for the week ended June 21, well above the forecast -3 million barrel decline and flooding out the previous weekÂ’s -2.547 million barrel drawdown. US Crude Oil markets shuddered after another week-on-week buildup, sending WTI back to the $80.00 handle on reaction.
Energy markets are still holding onto hopes of a summertime uptick in fossil fuel demand on the back of increased cooling costs, as well as the summer driving season. This follows a flubbed uptick in Chinese Crude Oil demand that failed to materialize, as well as the US Memorial Day holiday driving season that also failed to make a meaningful dent in US Crude Oil supplies.
WTI technical outlook
WTI continues to trade in a rough range priced in between $80.00 and $81.50, with a hefty supply zone keeping upside momentum hobbled beyond $81.50. Intraday price action is clattering against the 200-hour Exponential Moving Average (EMA) rising through the $80.00 handle.
Daily candlesticks continue to middle around the $81.00 handle, and continued consolidation opens the way up for a bearish turnaround towards the low side of the 200-day EMA at $78.91. A downside push will leave WTI bids exposed to a further decline to early JuneÂ’s swing low below $73.00 per barrel.
WTI hourly chart
WTI daily chart
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. APIÂ’s report is published every Tuesday and EIAÂ’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 13 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
USD/JPY Price Analysis: Hits 38-year high at around 160.80s
398452 June 27, 2024 03:51 FXStreet Market News
- USD/JPY reaches multi-year peak at 160.83, surpassing key 160.00 level amid USD strength.
- Technicals show strong uptrend with overbought RSI, buying momentum strong.
- Resistance levels: 161.00, 162.00, 164.87 (Nov 1986 high), 178 (Apr 1986 high).
- Support found at 158.75 (June 24 low), Tenkan-Sen at 157.82, Senkou Span A at 157.53, Kijun-Sen at 157.24.
The USD/JPY rallied sharply during WednesdayÂ’s session after the pair hit a 38-year high past the 160.00 psychological figure, seen as the line of the sand for Japanese authorities and the Japanese Yen to intervene in the FX space. Nevertheless, failure to do it prompted US dollar bulls to push the exchange rate higher, and at the time of writing, the pair traded at 160.83, which was up 0.73%.
USD/JPY Price Analysis: Technical outlook
The USD/JPY is upward biased and extended its gains past the psychological 160.00 barrier for the second time since April 29, when the pair printed a year-to-date (YTD) high of 160.32. This has reignited fears that Japanese authorities or the Bank of Japan (BoJ) could step into the plate to halt YenÂ’s depreciation.
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.
The next 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 JuneÂ’s 24 low of 158.75, followed by the Tenkan-Sen at 157.82. Once those levels are cleared, the next stop would be the Senkou Span A at 157.53, and then the Kijun-Sen at 157.24.
USD/JPY Price Action – Daily Chart
Cable falls to six-week low
398451 June 27, 2024 03:26 Forexlive Latest News Market News
Cable has sagged to a session low, down 69 pips to 1.2617. That’s the lowest since May 14 but roughly in the middle of the 2024 range.
What’s most-worrisome is the three-day reversal on the chart, which is a textbook reversal pattern.
GBPUSD daily
A finish today below Monday’s low of 1.2622 would complete the pattern.
Today’s move is also challenging the 55-day moving average at 1.2617 with the 200-day down at 1.2559.
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US Treasury yields rise as global inflation fears mount
398450 June 27, 2024 03:21 FXStreet Market News
- US Treasury yields climb as global inflation data sparks fears; 10-year bond yield rises to 4.320%.
- Canadian and Australian inflation data higher than expected, contributing to global yield increases.
- Focus shifts to US May PCE report, with expectations of a slight decrease in both headline and core inflation.
US Treasury yields climbed on Wednesday after some countries revealed inflation data, which was higher than expected and increased fears that the upcoming MayÂ’s Personal Consumption Expenditure (PCE) Price Index report in the United States could come hot.
Elevated US yields weighed on Gold, pushing prices to a two-week low
On Tuesday, data from Canada showed that inflation came hotter than expected, spurring a jump in global bond yields. On Wednesday, AustraliaÂ’s Consumer Price Index (CPI) rose to its highest level in six months, peaking at 4%, well above the Reserve Bank of Australia (RBA) inflation goal.
Focus this week will be on the FedÂ’s preferred gauge for inflation, the May PCE, which is expected to decrease from 2.7% to 2.6 YoY, while core PCE is anticipated to be 2.6% in the twelve months to May, down from 2.8%.
Other significant data releases include the final reading of Q1 2024 Gross Domestic Product (GDP), Durable Goods Orders, and Initial Jobless Claims.
The US 10-year Treasury bond yield has risen seven basis points to 4.320%, its highest level since mid-June. This pushed Gold prices toward a two-week low of $2,293 before stabilizing at around $2,297.
Data from the Chicago Board of Trade (CBOT) shows that traders expect 36 basis points (bps) of easing, according to DecemberÂ’s 2024 fed funds rate futures contract. In the meantime, the CME FedWatch Tool shows odds for a 25-basis-point Fed rate cut in September at 56.3%, lower than TuesdayÂ’s 59.5%.
Interest rates FAQs
XRP stuck under $0.48 while Ripple CEO claps back at SEC Chair for recent remarks on crypto
398448 June 27, 2024 03:12 FXStreet Market News
- Ripple CEO Brad Garlinghouse criticized SEC Chair Gensler for his statement that all crypto executives go to jail.Â
- Gensler shared his thoughts on crypto regulation and the sectorÂ’s role in the US Presidential election in a Bloomberg interview.Â
- XRP is struggling to break above resistance at $0.48 early on Wednesday.Â
Ripple (XRP) executive Brad Garlinghouse is making headlines for his statement on Securities and Exchange Commission (SEC) Gary GenslerÂ’s remarks on crypto. Gensler said crypto is a field where either the executives are in jail or awaiting extradition.Â
Garlinghouse slammed the SEC ChairÂ’s statement in a recent tweet on X. The Ripple CEO has faced a lawsuit in California that is set to go to trial for his “misleading statements” in an interview in 2017.Â
XRP is struggling under $0.48, the altcoin is trading at $0.4723, down 0.69% on Wednesday.Â
Daily digest market movers: Ripple CEO condemns Chair GenslerÂ’s statements on crypto
- Ripple CEO Brad Garlinghouse was recently in the news for a California state lawsuit against the executive that went to trial. Garlinghouse allegedly made “misleading statements,” saying he is bullish on XRP while selling millions of tokens at the same time.Â
- Garlinghouse is making headlines this time for his response to Gary GenslerÂ’s remarks in a Bloomberg interview.Â
- The SEC Chair said in the interview that, “This (crypto) is a field where the leading lights from a couple of years ago are either in jail, about to go to jail, or awaiting extradition.”
- Garlinghouse slammed the comments in a recent tweet on X:
Absolute nonsense coming from @GaryGensler today.
And this slander about “all crypto execs going to jail” from the man who completely missed FTX (and actually cozied up to SBF), and wasn’t even invited to the DOJ announcement about Binance.
If he was really “working for the… https://t.co/c3ynB5Gncl
— Brad Garlinghouse (@bgarlinghouse) June 25, 2024
- The SECÂ’s lawsuit against Ripple dates back to 2020, making it evident why the executive and the agency chair donÂ’t see eye to eye on the industry.Â
- The ongoing lawsuit and the executiveÂ’s comments are the market movers on Wednesday.Â
- XRP is struggling to break past the sticky resistance at $0.48 this week.
Technical analysis: XRP stuck under resistance at $0.48
Ripple is stuck under resistance at $0.48 for the sixth consecutive day, as seen on the daily chart. The altcoin has failed to break above the 23.6% Fibonacci retracement of its decline from the March 11 top of $0.7440 to the April 13 low of $0.4188, at $0.4955.Â
The closest support is the June 7 low of $0.4508, 5% below the current price level. The closest resistance lies at the Fair Value Gap, between $0.4825 and $0.4841.Â
The Moving Average Convergence Divergence (MACD) indicator is flashing red histogram bars under the neutral line, and the signal line has crossed above MACD. This reveals an underlying negative momentum in Ripple’s price trend. 
XRP/USDT daily chartÂ
A daily candlestick close above $0.4955 could invalidate the bearish thesis and erase the recent losses, 3.28% in the past seven days. The altcoin could then rally towards the closest resistance at $0.4825.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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Worldcoin secures partnership with Alchemy Labs
398447 June 27, 2024 03:09 FXStreet Market News
- Worldcoin announced its latest partnership with Alchemy Labs earlier on Wednesday.
- Alchemy will provide Worldcoin with infrastructure for the development of World Chain.
- WLD is down over 5% despite the announcement.
In an announcement on Wednesday, Worldcoin (WLD) disclosed its latest partnership with Alchemy Labs, which will see the latter provide reliable infrastructure for the development of World Chain, its proposed Layer 2 network. Alchemy also plans to incorporate World ID to promote its expansion as an internet infrastructure. The move has yet to impact WLD’s price, which is down 5.7%.
Worldcoin partners with Alchemy ahead of World Chain launch
Worldcoin, a project that offers human ID verification, has partnered with Alchemy Labs, a web3 infrastructure platform, to build the World Chain L2 network.
World Chain is a Layer 2 blockchain that aims to optimize for real users, giving World ID holders priority block space and zero fees for basic transactions.
With the partnership, Worldcoin will utilize Alchemy Labs’ suite of integrations, APIs and other tools ahead of World Chain’s launch.
The partnership will also allow Worldcoin access to Alchemy’s rollup services, which will help power World Chain as a Layer 2 network. In turn, Alchemy will integrate World ID to scale its “growth as an internet infrastructure.”
“World Chain will launch with over 10M users, creating a global chain focused on real-world utility across DeFi and identity use cases,” Alchemy stated in an X post.
World Chain had earlier disclosed that it would utilize Optimism’s OP stack to build its network, making it part of the OP Superchain, an interconnection of Optimism-based Layer-2 networks.
The price of WLD is yet to experience a rally, with a decline of 5.7% in the last 24 hours. The partnership may cause WLD’s price to rise as World Chain’s launch draws closer.
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