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20 12, 2024

Crude Oil Price Outlook – Crude Oil Continues to See Sideways Action

By |2024-12-20T19:15:14+02:00December 20, 2024|Forex News, News|0 Comments


Important DisclaimersThe content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party’s services, and does not assume responsibility for your use of any such third party’s website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.Risk DisclaimersThis website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.



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20 12, 2024

Slumps as UK Retail Sales misses estimates

By |2024-12-20T17:54:41+02:00December 20, 2024|Forex News, News|0 Comments

  • GBP/JPY declines to near 196.00 as higher number of BoE officials voted for an interest rate reduction on Thursday than what market participants had anticipated.
  • UK Retail Sales rose at a slower-than-expected pace in November.
  • Hotter Japan National CPI data for November has boosted BoJ hawkish bets.

The GBP/JPY pair is down almost 0.4% to 196.00 in Friday’s North American session. The asset faces selling pressure after the release of the United Kingdom (UK) Retail Sales data for November, which came in slower than projected due to weak demand at clothing stores.

The Retail Sales data, a key measure of consumer spending, rose by 0.2%, slower than estimates of 0.5%. Weak Retail Sales data weighed on the Pound Sterling (GBP). However, the major reason behind the British currency’s underperformance across the board on Friday is the dovish buildup for the UK interest rates outlook by the Bank of England (BoE).

The BoE left its key borrowing rates at 4.75%, as expected, in which three of nine Monetary Policy Committee (MPC) members proposed cutting interest rates by 25 basis points (bps) to 4.5%. However, market participants anticipated that only one policymaker would vote for a dovish interest rate decision.

Meanwhile, the Japanese Yen (JPY) ticks higher on Friday on the hotter-than-expected inflation report for November. As measured by the National Consumer Price Index (CPI), the headline inflation accelerated to 2.9% from 2.3% in October. The National CPI, excluding Fresh Food, rose by 2.7%, faster than estimates of 2.6% and the former release of 2.3%.

Accelerating price pressures have boosted expectations of more interest rate hikes by the Bank of Japan (BoJ) in upcoming policy meetings.

GBP/JPY wobbles near the upper portion of the Symmetrical Triangle formation on a daily timeframe, which suggests a sharp volatility contraction. The outlook of the pair is bullish as it trades above the 50- and 200-day Exponential Moving Averages (EMAs), which are around 194.25 and 193.00, respectively.

The 14-day Relative Strength Index (RSI) hovers near 60.00. A bullish momentum would trigger if it breaks above this level.

A fresh upside towards the October high of 200.00 and the June 14 high of 201.60 would appear if the asset breaks above Thursday’s high of 199.00.

On the flip side, a downside below the December 9 low of 190.60 will expose it to a December 3 low of around 188.00, followed by a September 18 low of 185.80.

GBP/JPY daily chart

Economic Indicator

National CPI ex Fresh Food (YoY)

Japan’s National Consumer Price Index (CPI), released by the Statistics Bureau of Japan on a monthly basis, measures the price fluctuation of goods and services purchased by households nationwide excluding fresh food, whose prices often fluctuate depending on the weather. The YoY reading compares prices in the reference month to the same month a year earlier. Generally, a high reading is seen as bullish for the Japanese Yen (JPY), while a low reading is seen as bearish.

Read more.

Last release: Thu Dec 19, 2024 23:30

Frequency: Monthly

Actual: 2.7%

Consensus: 2.6%

Previous: 2.3%

Source: Statistics Bureau of Japan

 

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20 12, 2024

Trailblazers shaping the future of the dietary supplement industry

By |2024-12-20T17:53:13+02:00December 20, 2024|Dietary Supplements News, News|0 Comments


Throughout 2024, Radicle Science celebrated 12 industry visionaries through our monthly Trailblazers series—leaders redefining what’s possible in wellness. Reflecting on a transformative year, we spotlight these pioneers to explore trends shaping the future of health and wellness. Unified themes emerge: transparency, innovation, education and inclusion are the cornerstones of the industry’s future. These diverse leaders turned challenges into opportunities, rebuilding trust, elevating standards and advancing an inclusive wellness landscape.

Here are six critical lessons for the New Year.

Lesson 1: Build consumer trust through transparency

Transparency is crucial to building consumer loyalty, credibility, restoring trust and differentiating brands in a scrutinized market. Transparency about ingredients and processes builds trust and positions companies as industry leaders.

“Consumers trust brands showing authenticity through real, compelling human stories,” said Joe Dickson, Merryfield, co-founder and head of standards at Merryfield. “[They are] looking for brands and founders connecting on a human level, sharing their journeys and providing credible, transparent information about their products. Companies aren’t people, but their founders are, fostering real human connections is irreplaceable.”

Establishing clear, enforceable guidelines for product safety, efficacy and labeling, and leveraging third-party verification breeds trust. Use accessible channels, like websites and social media, to share this information directly with consumers.

“There are several ways to build authentic customer engagement—my favorite is vulnerability,” shared Elan Sudberg, CEO of Alkemist Labs. “Brands need to connect with consumers. Vulnerability is a gate that, when open, draws the buyer in to satisfy their curiosities. Trust comes from transparency—another form of vulnerability. … Studies show consumers choose transparency brands over those that aren’t.”

Being open about safety, efficacy, and sourcing transforms skepticism into trust. Trust is a competitive edge that builds loyalty among consumers, retailers, and regulators.

Lesson 2: Revolutionize research and personalization with technology

Technology is upleveling the development, validation and consumer personalization of dietary supplements. From data-driven formulation development to AI-powered clinical insights, advanced technologies drive wellness innovation at an ever-accelerated pace.

“There is good reason to be enthusiastic about AI speeding up discovery and creating and eliminating interesting possibilities using massive data sets from which skilled people can then advance ideas,” noted Loren Israelsen, president and founder of the United Natural Products Alliance (UNPA).

There are countless opportunities to leverage advanced technologies, including machine learning and gen AI, making data-driven insights more broadly accessible, useful and impactful.

Greg Horn, CEO of Specialty Nutrition Consulting, stated: “Four themes—smarter computing, better metrics, a bigger toolbox of bioactives and advanced insights into highly complex ‘-omic’ interactions—come together to herald a new era of applied effective nutrition with a degree of precision and tunability with feedback that we can only imagine today. … The democratization of information and scaling of data made possible first by the internet and now by AI enhances breakthrough accessibility.”

Harnessing technology elevates every facet of product life cycles, from accelerating innovation, creating more effective finished products, powering higher regulatory compliance and informing more targeted marketing—all driving higher revenues, margins and improved stakeholder trust.

Lesson 3: Commit to consumer education with science-based messaging

In an era of misinformation, educating consumers with clear, science-backed insights is key. Knowledgeable consumers are empowered to make informed health choices, boosting trust and loyalty.

“Brands need to research their products’ efficacy and dosages, share results and talk about the continuous improvement of their products.” said Susan Kleiner, PhD, founder and owner of High Performance Nutrition.

The opportunity is to create educational campaigns that translate complex scientific data into approachable, relatable messaging. It’s an opportunity to showcase clean, potent, clinically validated products while tackling myths and concerns.

Gene Bruno, ‘The Vitamin Professor’ and chief scientific Nutraland USA chief scientific officer, is authoring a new book about ‘Real Science’ vs ‘Marketing Science.’ He shared: “The dietary supplement industry is rife with ‘fairy dust’ products containing inadequate doses of nutraceuticals supposedly providing beneficial effects. Too often they also don’t provide the right form of the nutraceutical…At the same time, there are many legitimate dietary supplements with the right doses of the right nutraceuticals based on real science, including human clinical research supporting their efficacy.”

Well-informed consumers are more likely to invest in brands that demonstrate integrity and clarity establishing these brands as trusted authorities.

Lesson 4: Address misinformation through ethical standards

Trailblazers expressed frustration over the persistent misconception that the dietary supplement industry is unregulated. They emphasized the importance of self-regulation and collaboration with regulatory bodies.

“Effective self-regulation would further complement and enhance government regulation. … Refinements in the efficiency, independence and transparency of the existing self-regulatory machinery and its administration would benefit the industry and consumers,” said former FTC Commissioner Pamela Harbour.

This can be complemented by updates in the regulatory paradigm.

“Regulatory relics of the pre-internet economy prohibit companies from disseminating certain truthful and not misleading information about dietary supplements and ingredients to the public,” observed Michael McGuffin, president of the American Herbal Products Association (AHPA). “These barriers are overdue for modernization to enable industry to better inform and educate consumers, in turn helping strengthen long-term consumer trust in the category.”

While supporting these efforts, companies can develop robust quality control systems and craft campaigns spotlighting their commitment through transparent communication—enhancing overall industry credibility.

Lesson 5: Reduce health disparities through inclusion

Addressing health access disparities has become a defining focus. Prioritizing inclusion fosters equity, opens markets and resonates with socially conscious consumers, driving growth. This aligns with technology’s growing role in advancing the sector.

Danielle Masterson, editor at NutraIngredients-USA, shared: “I am enthusiastic about AI’s role in health and wellness, notably within the dietary supplement industry… My biggest concern is lack of dataset diversity, which leads to algorithmic biases that don’t benefit everyone—especially women and minorities… If executed correctly, AI holds the potential to positively reshape the world.”

What could this look like? Companies could invest in research and product development aimed at underserved populations, tailoring marketing and distribution strategies to be culturally sensitive and accessible, reflecting the diverse needs of global consumers.

“We need to change our definition of success,” said Karen Howard, CEO and executive director of the Organic & Natural Health Association CEO. “Sustainable growth thrives with meaningful outcomes, this requires addressing health disparities linked to limited access to healthy foods and supplements.”

Lesson 6: Invest in supply chain integrity and sustainability

Sustainability is a key focus as consumers and industry demand eco-friendly practices. From ingredient sourcing to production, trailblazers are setting the standard.

Technology is front of mind with Lori Bestervelt, PhD, senior VP of certification services at the Sports Medicine Research and Testing Lab, who cited blockchain and digital product passport potential to support supply chain efforts.

“Complete supply chain transparency, including ingredient origin, manufacturing processes, and potential side effects, is crucial. … and key for the industry’s future,” she said.

Similarly, Kenn Israel, partner and co-founder at BeyondBrands, commented: “AI-empowered SynBio, precision fermentation and cellular agriculture are capable of consistent manufacture at scale of desired molecules and/or complex ingredient materials. These technologies de-risk, smooth and scale supply chains, democratizing rare compounds, reducing wasteful extraction and eliminating seasonality and environmental risk.”

Moving into 2025, these insights from Radicle Trailblazers serve as a roadmap for driving growth, fostering trust and advancing health and wellness for all.



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20 12, 2024

SOL Likely to See Double-Digit Correction

By |2024-12-20T17:51:13+02:00December 20, 2024|Crypto News, News|0 Comments

  • Solana’s price struggles at $183 after a 40% drop from $228 resistance, with a bearish RSI at 26 hinting at further declines.
  • Solana’s TVL plummets 8% overnight to $8.45B, sparking concerns of a potential repeat of prior double-digit price drops.

Solana’s price struggles to keep its footing as it trades below $194, continuing its downward spiral, marking a decline of 19% in the last week. The decline triggered $34.75 million in liquidations. $29.43 million of that was tied to long positions, while only $5.32 was short, hinting at a grim trajectory ahead, according to Coinglass. 

SOL Likely to See Double-Digit Correction
Source: Coinglass

Resistance around $228 earlier in the week proved too much for SOL. A steep 40% decline followed, pulling the token from the resistance level to the current level of $183. The bearish momentum is clear, with the RSI indicator dipping to 26, well below its neutral level of 50. The possibility of SOL revisiting $170 becomes stronger if $203 remains as resistance.  

Source: TradingView

Solana’s TVL Drops 8% Overnight

A closer look at Solana’s TVL paints a troubling picture. Data from DefiLlama reveals a sharp drop from $9.18 billion to $8.45 billion in just 24 hours. Similar TVL declines were observed on August 3 and October 29, each followed by a price drop exceeding 10%. This historical pattern fuels speculation that the current situation might lead to a repeat performance.  

While the bearish outlook seems dominant, some analysts point to a potential silver lining. A recovery above $203 could shift the tide, setting SOL on a path to retest the $230 resistance level. Should this happen, bullish momentum might return, lifting the cryptocurrency higher.  

However, Solana has faced setbacks in recent weeks. After hitting an all-time high of $263.83 last month, profit-taking dragged the token down to $216. It briefly consolidated between $220 and $230 but struggled to hold these levels. Despite the current downturn, projections suggest SOL might still have a shot at surpassing $400 by the end of the year.  

Bright Spots in a Bearish Outlook

John Michaels, a prominent crypto analyst, maintains optimism regarding Solana’s future. Solana’s steady growth in recent months, combined with a robust support base, suggests a potential surge beyond $400, as CNF previously reported. Michaels pointed to the upward trendline as a critical indicator, forecasting a climb to $420 during the holiday period if resistance barriers are surpassed.

The broader crypto market, fueled by Bitcoin’s pursuit of the $100,000 mark, continues to generate excitement. Solana has historically thrived on bullish market sentiment, and any significant developments—such as approval for Solana-based ETFs—could provide the boost needed for a turnaround.  


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20 12, 2024

Domestic coffee prices may remain at current levels

By |2024-12-20T17:14:33+02:00December 20, 2024|Forex News, News|0 Comments


Coffee price world unpredictable increase and decrease

Robusta coffee prices on the London floor updated at 15:30 p.m. December 19, 2024 decreased sharply for the second consecutive session from 2-18 USD/ton, fluctuating between 65 – 5005 USD/ton. Specifically, the monthly delivery term January 2025 is 5151 USD/ton (down 5151 USD/ton); the monthly delivery term March 2025 is 65 USD/ton (down 5139 USD/ton); the monthly delivery term May 2025 is 29 USD/ton (down 5085 USD/ton) and the monthly delivery term July 2025 is 18 USD/ton (down 5005 USD/ton).

Lam Dong people harvest the main coffee. Photo: Van Long

In contrast to Robusta coffee prices, Arabica coffee prices on the New York floor increased sharply after yesterday’s price drop, increasing from 3.30 – 7.70 cents/lb, fluctuating from 311.40 – 332.65 cents/lb. Specifically, the monthly delivery term March 2025 is 332.65 cents/lb (up 7.70 cents/lb); the monthly delivery term May 2025 is 327.40 cents/lb (up 5.50 cents/lb); the monthly delivery term July 2025 is 320.70 cents/lb (up 3.75 cents/lb) and the monthly delivery term September 2025 is 311.40 cents/lb (up 3.30 cents/lb).

Similarly, at the end of the trading session, the price of Brazilian Arabica coffee, updated in the afternoon of December 19, 2024, also had a strong increase of 0.30 – 10.45 USD/ton compared to yesterday, fluctuating from 399.85 – 407.35 USD/ton. Specifically, the monthly delivery term December 2024 is 407.35 USD/ton (up 10.45 USD/ton); the monthly delivery term March 2025 is 419.50 USD/ton (up 0.30 USD/ton); the monthly delivery term May 2025 is 408.85 USD/ton (up 7.30 USD/ton) and the monthly delivery term July 2025 is 399.85 USD/ton (up 4.95 USD/ton).

Domestic coffee prices have decreased slightly.

Under the pressure of a sharp drop in the world price of Robusta coffee, domestic coffee prices could not maintain stability and fell for the second consecutive session, but the price decrease was not significant. According to information from Giacaphe.com, updated coffee prices at 2:15 p.m. today, December 19, 2024, the average domestic coffee price was at 30 VND/kg, down -123.200 VND/kg compared to yesterday.

Coffee price forecast tomorrow December 20, 12: Will coffee prices continue?
People in Gia Lai province check the quality of green coffee beans before selling. Photo: Hien Mai

Coffee prices in key regions of the Central Highlands (Dak Lak, Lam Dong, Gia Lai, Dak Nong) were recorded to have the same price decrease of -200 VND/kg. Specifically, the price of coffee in Dak Lak is 123.800 VND/kg; the price of coffee in Lam Dong is 122.500 VND/kg; the price of coffee in Gia Lai is 123.600 VND/kg and the price of coffee in Dak Nong is 124.000 VND/kg.

The domestic coffee prices that Giacaphe.com lists every day are calculated based on the prices of two world coffee exchanges combined with continuous surveys from businesses and purchasing agents in key coffee growing areas across the country.

Y5Cafe always tries to stay as close as possible to each region, however there will be days when the listed price does not completely match the local coffee purchase price, but Y5Cafe believes that the listed information is a valuable reference source for you.

Receive determined Coffee price tomorrow 20/ 12 / 2024

Experts believe that domestic coffee prices in the coming time will be affected by the world market. At the end of the year, financial speculators are gradually withdrawing money from the market, causing prices on the floor to adjust.

According to analysis, there are not many physical transactions. The nature of the fluctuations on the coffee futures exchanges (New York and London) in recent times may be due to financial speculators taking short-term profits.

Accordingly, the recent high price of coffee is not due to a shortage of supply. The reason may be that they are pushing the price up and now is the time to take profits.

Accompanied by the current harvest period, therefore, the adjustment pressure on domestic coffee prices increases as supply is replenished. When coffee prices in the market adjust, accompanied by pressure from increased supply during the harvest period, domestic coffee prices will also decrease.

Based on the downward trend of coffee prices on both international exchanges and domestic markets, it is forecasted that coffee prices on December 20, 2024 may continue the downward trend or remain stable at the current level.

Sources: https://congthuong.vn/du-bao-gia-ca-phe-ngay-mai-20122024-gia-ca-phe-trong-nuoc-co-the-duy-tri-o-muc-hien-tai-365105.html



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20 12, 2024

GBP/USD tumbles near 1.2500 breakdown as US data boosts USD

By |2024-12-20T15:53:19+02:00December 20, 2024|Forex News, News|0 Comments

GBP/USD tumbles near 1.2500 breakdown as US data boosts USD

The GBP/USD extended its losses during the North American session, with sellers targeting a break below 1.2500. Cable is losing over 0.48% or 60 pips on the day. At the time of writing, the pair hovers near 1.2500.

US data released ahead of the New York open hinted that the labor market remains solid and the economy is expanding. Initial Jobless Claims for the week ending December 14 fell from 242K to 220K, below forecasts of 230K. Read more…

GBP/USD Forecast: Pound Sterling could renew multi-month lows

Following Wednesday’s loss of more than 1%, GBP/USD extended its slide on Thursday. After touching its weakest level since early May near 1.2470 in the Asian trading hours on Friday, the pair recovered to the 1.2500 area in the European session.

The Bank of England (BoE) maintained its bank rate at 4.75% after the December meeting, as expected. On a dovish twist, however, three members of the Monetary Policy Committee (MPC) voted for a 25 basis points (bps) rate cut. In its policy statement, the BoE said that they can’t commit to when or by how much they will cut rates in 2025, due to heightened uncertainty in the economy. Pound Sterling came under bearish pressure following the BoE’s policy announcements. Read more…

GBPUSD

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20 12, 2024

For something out of the ordinary, try this green tea infused tipple

By |2024-12-20T15:52:00+02:00December 20, 2024|Dietary Supplements News, News|0 Comments


This Green Tea Punch has the familiar flavours of Tanqueray Gin, but with Chinese-inspired notes including green tea, sake, and lemongrass to take you on a real journey.

“Inspired by my recent trip to Shanghai, understated elegance is at the heart of their fashion and cocktails,” Cal explains.

“Using a simple technique known as ‘milk washing’, this drink is clarified, allowing the complexity of its composition to sit under the guise of a simple and clean aesthetic. This technique is used in some of the world’s best cocktail bars.”

To pair with this drink’s Asian influence, Cal has put together a look that’s also inspired by his travels. He’s wearing a piece by a Shanghai designer that’s equally focused on understated elegance, with its low-key colour yet striking silhouette.



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20 12, 2024

Timelines for Dogecoin to Hit $10, $20, $50 and $100

By |2024-12-20T15:50:04+02:00December 20, 2024|Crypto News, News|0 Comments

Various reputable entities have commented on the possible timelines for Dogecoin to reach double-digit values and even surpass $100.

Dogecoin has been one of the victims of the recent market downturn, dropping by 28% over the past week. However, with its current value of $$0.28, the meme coin still boasts a year-to-date growth of 250%.

Given its impressive performance so far in 2024, analysts expect Dogecoin to perform even better in 2025. Notably, some market watchers have speculated that Dogecoin could break the unit value milestone and extend even beyond $10.

For context, at $10, Dogecoin would have a market cap of $1.4 trillion. Considering the weight of this, The Crypto Basic sought input from Elon Musk’s AI Grok and OpenAI’s ChatGPT on when Dogecoin could reach a peak value of $10, $20, $50, and $100.

When Dogecoin Can Hit $10, $20, $50, and $100, According to Grok

Grok, the chatbot associated with Elon Musk’s X platform, provided a broad overview of the speculative timelines for Dogecoin reaching these price points. 

As for the $10 price point, Grok suggests that reaching $10 could be achievable around January 2040 or even as early as 2029, according to predictions from Changelly and CoinCodex.

Meanwhile, Grok aligns with popular estimates for $20, noting Dogecoin could hit $20 by March 2040 or 2045.

While Grok didn’t provide an explicit timeline for Dogecoin reaching $50, it is implied that such a milestone would likely be even more speculative.

Likewise, for the $100 price point, the chatbot noted that $100 for Dogecoin is viewed with skepticism, given the necessary market capitalization. Grok hinted that it is highly unlikely, as this would require a market cap exceeding $14.73 trillion.

While optimistic projections place this possibility beyond 2040, the consensus remains that this target might be unfeasible under current market conditions.

When Dogecoin Can Hit $10, $20, $50, and $100, According to ChatGPT

On the other hand, ChatGPT provided a more detailed analysis of Dogecoin’s potential to reach these four price points. 

ChatGPT predicts Dogecoin could hit $10 between 2028 and 2032, with a required market cap of approximately $1.41 trillion. For this to occur, Dogecoin would need to capture around 10% of a projected $15 trillion crypto market.

According to ChatGPT, achieving such a market cap could be realistic if blockchain technology continues to gain mainstream adoption and Dogecoin secures strategic partnerships and use cases globally.

Meanwhile, the timeline for Dogecoin hitting $20 is forecast between 2030 and 2035, with a required market cap of $2.82 trillion. This scenario assumes that the crypto market expands to approximately $30 trillion, with Dogecoin seeing a 10% dominance in this larger ecosystem.

Furthermore, for Dogecoin to reach $50, ChatGPT estimates a timeline of 2035–2040. This would require a market cap of $7.04 trillion.

However, ChatGPT is highly cautious about Dogecoin reaching $100, as it would require an unprecedented market cap of $14.08 trillion. The timeline for this target is beyond 2040, with the crypto market needing to exceed $100 trillion for this price point to become even remotely feasible.

ChatGPT emphasizes that this is speculative and would likely require revolutionary shifts in global finance.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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20 12, 2024

XAG/USD consolidates around $29 as investors await US PCE inflation data

By |2024-12-20T15:12:26+02:00December 20, 2024|Forex News, News|0 Comments


  • Silves price trades in a limited range, with investors focusing on the US PCE inflation data for November.
  • The Fed signaled fewer interest rate cuts for the next year in its policy meeting on Wednesday.
  • The US Dollar and bond yields have rallied on Fed’s hawkish guidance.

Silver price (XAG/USD) trades in a tight range around $29.00 in Friday’s European trading session. The white metal consolidates as investors await the United States (US) core Personal Consumption Expenditure Price Index (PCE) data for November, which will be published at 13:30 GMT.

Economists expect the US annual core PCE inflation data to have accelerated to 2.9% from 2.8% in October. On month, the underlying inflation data is estimated to have grown steadily by 0.2%. Signs of mild slowdown in price pressures are unlikely to impact market expectations that the Federal Reserve (Fed) will pause the policy-easing spell in the policy meeting in January 2025. However, a sharp deceleration could weigh on them. On the contrary, a mild or sharp acceleration in price pressures would strengthen them.

In the policy meeting on Wednesday, the Fed reduced its key borrowing rates by 25 basis points (bps) to 4.25%-4.50% but signaled fewer interest rate cuts for 2025. The Fed dot plot showed that officials collectively see Federal Fund rates heading to 3.9% by 2025 against 3.4% projected in September.

Ahead of the US PCE inflation data, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, edges lower after posting a fresh two-year high at 108.50. 10-year US Treasury yields tick lower to 4.56% from a fresh six-month high of 4.60%. Higher yields on interest-bearing assets increase the opportunity cost of holding an investment in non-yielding assets, such as Silver.

Silver technical analysis

Silver price slides below the 200-day Exponential Moving Average (EMA), which trades around $29.35. The white metal weakens after a breakdown of the upward-sloping trendline around $30.20, which is plotted from the February 29 low of $22.30.

The 14-day Relative Strength Index (RSI) drops inside the bearish range of 20.00-40.00 range, guiding a downside momentum ahead.

Looking down, the September low of $27.75 would as key support for the Silver price. On the upside, the 50-day EMA around $30.90 would be the barrier.

Silver daily chart

Silver FAQs

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.

Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

 



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20 12, 2024

Pound Sterling could renew multi-month lows

By |2024-12-20T13:52:17+02:00December 20, 2024|Forex News, News|0 Comments

  • GBP/USD trades in a tight range near 1.2500 in the European session on Friday.
  • Pound Sterling could have a difficult time staging a rebound after BoE policy announcements.
  • The risk-averse market atmosphere could put additional weight on the pair’s shoulders.

Following Wednesday’s loss of more than 1%, GBP/USD extended its slide on Thursday. After touching its weakest level since early May near 1.2470 in the Asian trading hours on Friday, the pair recovered to the 1.2500 area in the European session.

British Pound PRICE This week

The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the weakest against the US Dollar.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   1.15% 0.95% 1.99% 1.07% 2.02% 2.29% 0.32%
EUR -1.15%   -0.14% 0.94% -0.01% 1.03% 1.20% -0.76%
GBP -0.95% 0.14%   0.96% 0.13% 1.17% 1.32% -0.62%
JPY -1.99% -0.94% -0.96%   -0.93% 0.02% 0.30% -1.57%
CAD -1.07% 0.01% -0.13% 0.93%   0.99% 1.20% -0.74%
AUD -2.02% -1.03% -1.17% -0.02% -0.99%   0.17% -1.77%
NZD -2.29% -1.20% -1.32% -0.30% -1.20% -0.17%   -1.94%
CHF -0.32% 0.76% 0.62% 1.57% 0.74% 1.77% 1.94%  

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 British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

The Bank of England (BoE) maintained its bank rate at 4.75% after the December meeting, as expected. On a dovish twist, however, three members of the Monetary Policy Committee (MPC) voted for a 25 basis points (bps) rate cut. In its policy statement, the BoE said that they can’t commit to when or by how much they will cut rates in 2025, due to heightened uncertainty in the economy. Pound Sterling came under bearish pressure following the BoE’s policy announcements.

Early Friday, the negative shift seen in risk mood doesn’t allow GBP/USD to gather recovery momentum. Growing concerns over a US government shutdown at the end of the day causes investors to adopt a cautious stance. Reflecting the sour mood, US stock index futures were last seen losing between 0.6% and 1% on the day. In case safe-haven flows continue to dominate the action in financial markets, the pair could stretch lower heading into the weekend.

Meanwhile, the data published by the UK’s Office for National Statistics (ONS) showed on Friday that Retail Sales rose by 0.2% on a monthly basis in November. This reading came in below the market expectation for an increase of 0.5%. 

In the second half of the day, the US Bureau of Economic Analysis will publish the Personal Consumption Expenditures (PCE) Price Index data for November. Investors are likely to ignore this data.

GBP/USD Technical Analysis

The Relative Strength Index (RSI) indicator on the 4-hour chart stays slightly above 30, suggesting that GBP/USD could stretch lower before looking to stage a technical correction. On the downside, static support seems to have formed at 1.2480 ahead of 1.2400 (round level, static level) and 1.2340 (static level).

Looking north, first resistance could be spotted at 1.2550 (static level) before 1.2600 (static level, round level).

Pound Sterling FAQs

The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).

The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.

Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.

Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

 

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