Category: Currencies

Currency is a medium of exchange for goods and services. In short, it’s money, in the form of paper or coins, usually issued by a government and generally accepted at its face value as a method of payment. Currency is the primary medium of exchange in the modern world, having long ago replaced bartering as a means of trading goods and services. Currency is a generally accepted form of payment, usually issued by a government and circulated within its jurisdiction. The value of any currency fluctuates constantly in relation to other currencies. The currency exchange market exists as a means of profiting from those fluctuations. Many countries accept the U.S. dollar for payment, while others peg their currency value directly to the U.S. dollar.

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Currencies

Coinbase Plans to Shrink Workforce as Gloom in Cryptocurrency Markets Deepens

Business Strategy & Outlook:   

As the leading U.S.-based cryptocurrency exchange, Coinbase has positioned itself as the reliable on-ramp to the cryptocurrency space for new and experienced cryptocurrency traders alike. The company’s reputation, regulatory compliance, and record as a custodian have allowed it to maintain transaction fees above many of its peers despite operating in a crowded field with hundreds of competing firms trying to grab market share in the rapidly growing space. Unlike traditional exchanges in the U.S., Coinbase fulfills multiple roles in the trading ecosystem by acting as an exchange, asset custodian, and broker. 

Coinbase has continued to branch off into adjacent businesses offering cryptocurrency collateralized loans, a crypto debit card, blockchain infrastructure support, and data analytics services. While these new businesses expand its presence in the cryptocurrency space and add new revenue streams, the company still earns the majority of its income through the transaction fees traders pay when they trade on Coinbase’s platform. These fees are charged as a percentage of trade’s total value. Additionally, the bulk of Coinbase’s trading revenue comes from retail traders who are drawn by strong cryptocurrency markets and repelled by weak ones. This creates a strong correlation between Coinbase’s trading fee revenue and the size cryptocurrency market. Due to its breadth of its service offerings and the connection between cryptocurrency prices and trading revenue, Coinbase’s short- and long-term results are deeply tied to the health and growth of cryptocurrencies as an asset class. Cryptocurrency adoption continues to rise, but questions regarding the long-term viability of cryptocurrency, and the role of speculation in current market prices remain unanswered. Furthermore, Coinbase dramatically increased its spending in 2021, and while recent cost-cutting moves have reversed some of this growth, the company is likely to enter a prolonged period of unprofitability should cryptocurrency prices and trading volume not recover in short order.

Financial Strengths:  

Coinbase is in an excellent financial position, particularly after receiving an influx of capital from private-investment-in-public-equity investors coinciding with its direct listing on the Nasdaq exchange. Coinbase saw a spike in trading volume in 2021, leading the company to generate more net income in the first quarter of the year than in the entirety of 2020. As a result, the company ended March 2022 with more than $6 billion in cash and $1.3 billion in cryptocurrency against less than $3.4 billion in debt. The decision to keep strong cash reserves makes sense, given how volatile the company’s revenue generation can be. Coinbase needs to keep sufficient financial reserves to protect itself in the event of a major market collapse. Staying relatively unleveraged will be an important step in keeping the company financially secure in the long term through market cycles, particularly as further losses are expected for Coinbase as cryptocurrency markets remain weak.

Bulls Say: 

  • Coinbase has established itself as the leading U.S. cryptocurrency exchange and established a strong reputation for security in an industry filled with risk for traders.
  • Coinbase has been able to accelerate the rate at which it lists new cryptocurrencies, giving it more exposure to the growth of the asset class.
  • There is a global market for cryptocurrency. Regulatory approval from international regulators will allow Coinbase to expand its operations and increase its footprint globally

Company Description:  

Founded in 2012, Coinbase is the leading cryptocurrency exchange platform in the United States. The company intends to be the safe and regulation-compliant point of entry for retail investors and institutions into the cryptocurrency economy. Users can establish an account directly with the firm, instead of using an intermediary, and many choose to allow Coinbase to act as a custodian for their cryptocurrency, giving the company breadth beyond that of a traditional financial exchange. While the company still generates the majority of its revenue from transaction fees charged to its retail customers, Coinbase uses internal investment and acquisitions to expand into adjacent businesses, such as prime brokerage, data analytics, and collateralized lending.

(Source: Morningstar)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Laverne Investing. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Laverne and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Laverne and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Laverne and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Laverne and Banyan Tree do and seek to do business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Laverne and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Laverne and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Laverne and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Laverne and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and are not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Laverne and Banyan Tree.

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Currencies Trading Ideas & Charts

Dollar’s Climb Stalls Amid Mixed Economic Signals

 The WSJ Dollar Index, which measures the greenback in opposition to a basket of sixteen currencies, is round 2% off its May height and fell 1.1% closing month. That decline broke a regular march that added the greenback to multidecade highs. 

The index rose 0.6% closing week, breaking a two-week dropping streak. Behind the slip has been a diffused shift withinside the financial landscape.

According to latest financial reports, American purchasers are nevertheless spending cash at a speedy tempo, whilst employers preserve including jobs, extending the developments that had helped elevate the greenback over the last one year or so. Yet there were symptoms and symptoms of weak spot elsewhere. 

Wage boom has moderated from closing year, and purchasers were Dollar’s Climb Stalls Amid Mixed Economic Signals

capable of preserve their spending simplest with the aid of using dipping into savings. 

The U.S. carrier sector, which incorporates eating place eating and travel, slowed its tempo of enlargement in May, and income of latest houses in April published their largest drop in 9 years. 

Overall, the facts has clouded a few asset managers` outlook of the U.S. economic system. They are actually cautious that the Federal Reserve would possibly should gradual the tempo of predicted hobby-fee will increase. That is probably welcomed with the aid of using inventory traders, who’re acutely privy to the dangers that growing charges pose for tremendously valued shares, however its which means could be murkier in foreign money markets.

Investors usually purchase currencies connected to international locations in which valuable banks are elevating hobby charges to rein in a warm economic system. Investors assume the Fed to raise charges with the aid of using a complete of a percent factor in June and July, however what’s going to observe is tougher to determine. As a result, buyers now contend that the greenback is extra touchy than typical to financial releases at the horizon. 

The muddied outlook represents a shift in markets, after traders’ wager that a speedy tempo of fee will increase could pressure the greenback better at some point of the year. 

Many predicted a sturdy greenback to harm U.S. multinationals, with the aid of using making their merchandise extra highly-priced for foreigners, with groups inclusive of Microsoft Corp. noting a sturdy greenback`s hit on sales in latest reports. 

JPMorgan analysts say the greenback`s upward push is hurting the U.S. production sector, that’s slowing hiring to catch up on fewer exports.

In the coming week, investors will scrutinize data on the American consumer and Friday`s inflation numbers for clues regarding the state of the economy and the trajectory of the stock market. Lower inflation numbers could ease pressure on stocks and hit the dollar more, presaging a more gradual approach from the Fed. 

The Bank of England sparked sharp declines in the pound by signaling caution when it raised rates in May. Investors are now watching U.S. data for signs of similar slowing. Last week, the Labor Department reported that the economy added 390,000 jobs in May—above the 328,000 expected by economists. Still, the unemployment rate did not drop to 3.5% as expected, but remained at 3.6%. The average hourly wage increased by 0.3% month-on-month, below the consensus forecast of 0.4%. The foreign exchange market was the most volatile in more than a decade after the $ 4,444 appreciation depreciated other currencies and central banks around the world curbed inflation. Due to the recent decline in the WSJ dollar index, this year’s profits have fallen to about 6%.

In particular, investors are looking to monitor the housing market and assess the impact of more severe credit conditions. There are signs that the US market is chilling as rising mortgage rates increase the cost of owning a home. 

According to Freddie Mac, the average interest rate on fixed-rate mortgages for 30 years was 5.09% last week, up from 3.1% at the beginning of the year. Stock market volatility affected investment accounts. Higher energy costs can curb personal consumption, hinder growth and hurt the dollar. Andrzej Skiba, Head of BlueBay U.S. The RBC Global Asset Management fixed income team is short of dollars and expects to fall against other currencies. But he believes that recent concerns about the recession are overkill and will buy a downturn.

(Source: https: //www.wsj.com/)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Laverne Investing. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Laverne and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Laverne and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Laverne and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Laverne and Banyan Tree do and seek to do business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Laverne and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Laverne and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Laverne and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Laverne and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and are not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Laverne and Banyan Tree.

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Currencies Trading Ideas & Charts

Reserve Bank of Australia hikes Cash Rate by a jumbo 50 basis point to 0.85 per cent

Governor Philip Lowe announced a second major hike in five weeks as the RBA continues to pull the country away from the suspension of emergency lending that has nurtured the economy during the pandemic on Tuesday.

The RBA was widely expected to announce its first consecutive rise in 12 years to ease inflationary pressures pushing up food, fuel and electricity costs. 

The only question left was how hard the Governor  Dr Lowe and his board were ready, and economists’ expectations fluctuated primarily between 25 or 40 basis point rises. 

Some had expected a 50 basis point increase, but the largest single interest rate increase since 2000 was still a surprise. 

The Australian stock market fell 1.7% in the news, but the Australian dollar temporarily soared to US $ 72.20. 

In his monthly statement, Dr. Lowe acknowledged inflation concerns as a factor behind the rate hike, but also cited a strong Australian economy, a strong labor market and a recovery in business investment as positive reasons. 

“Resilience of the economy and higher inflation mean that this special support is no longer needed.” 

He acknowledged that rising electricity and gas prices and recent rising gasoline prices mean that inflation could be higher in the short term than expected a month ago. 

“But today’s rise in interest rates will help inflation return to its target over time.” He said it shows that he is planning with a focus on returning to the goal. The extent and content of the employment market recovery to maintain higher interest rates. 

“They have identified slower growth in household consumption due to faster inflation and higher interest rates as the main risk of the outlook. 

Faster rate hikes contribute to this downside risk,” Langcake said. 

The RBA Board is in a delicate balance and needs to act fast enough to curb inflation without choking the economy. 

Last month, during the federal campaign, it rose from 0.1% to 0.35% and implemented its first-rate hike in more than 11 years. The shift was stronger than expected and Martin Place stepped on the gas again.

The move on Tuesday will continue what is expected to be a long cycle of rate hikes in the coming months, pushing up consumer prices while also pushing up mortgage costs. 

Many also expect borrowers to pass on some of this stress to their tenants. 

“The monthly repayment increase this month is relatively modest, but homeowners need to prepare for a significant increase in the coming months,” said Sally, Research Director at RateCity.com.au. 

Tindal says. “These rate hikes will not magically cure Australia’s inflation problem. 

The RBA will probably need to rise again next month, from which the RBA will continue to be tight and tight to curb inflation. It could rise sharply. 

Improvements in living expenses have been at the heart of Australia’s political situation for months, and Finance Secretary Jim Chalmers warned on Tuesday that the situation was “deteriorating before it got better.” did. 

“It doesn’t make sense to chop up words about it,” Chalmers said. 

“Our work as a government will be replaced by responsible long-term and sustainable living expenses relief in areas such as health care and childcare after some of this short-term living expenses have expired. Dr. Rowe says that the cause of uncertainty about the economic outlook is household spending and how it is maintained. 

The decline in recent months has been declining, but remains more than 25% higher than pre-pandemic levels, supporting household wealth and spending. Dr. Lowe. 

“The central scenario is strong household growth, but for this year’s old consumption, the Board pays close attention to these various implications for consumption when assessing the direction of appropriate monetary policy. 

Uncertainty continues with Covid 19 as well, especially in China.

(Source: https://www.news.com.au/)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Laverne Investing. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Laverne and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Laverne and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Laverne and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Laverne and Banyan Tree do and seek to do business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Laverne and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Laverne and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Laverne and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Laverne and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and are not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Laverne and Banyan Tree.

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Currencies Trading Ideas & Charts

Pain in Cryptocurrency Markets Creates Uncertainty and Risk for Coinbase

Business Strategy & Outlook:   

As the leading U.S.-based cryptocurrency exchange, Coinbase has positioned itself as the reliable on-ramp into the cryptocurrency space for new and experienced cryptocurrency traders alike. The company’s reputation, regulatory compliance, and track record as a custodian have allowed it to maintain transaction fees above many of its peers despite operating in a crowded field with hundreds of competing firms trying to grab market share in the rapidly growing space. Unlike traditional exchanges in the U.S., Coinbase fulfills multiple roles in the trading ecosystem by acting as an exchange, asset custodian, and broker. 

Coinbase has continued to branch off into adjacent businesses offering cryptocurrency collateralized loans, a crypto debit card, blockchain infrastructure support, and data analytics services. While these new businesses expand the company’s presence in the cryptocurrency space and add new revenue streams, the company still earns the majority of its income through the transaction fees traders pay when they trade on Coinbase’s platform. These fees are charged as a percentage of trade’s total value. Additionally, the bulk of Coinbase’s trading revenue comes from retail traders, who are drawn by strong cryptocurrency markets and repelled by weak ones. This creates a strong correlation between Coinbase’s trading fee revenue and the size cryptocurrency market. Due to its breadth of its service offerings and the connection between cryptocurrency prices and trading revenue, Coinbase’s short- and long-term results are deeply tied to the health and growth of cryptocurrencies as an asset class. Cryptocurrency adoption continues to rise but questions regarding the long-term viability of cryptocurrency, the role of speculation in current market prices remain unanswered. Furthermore, Coinbase has dramatically increased its spending in recent quarters, creating the prospect of a prolonged period of unprofitability should cryptocurrency prices and trading volume not recover in short order. Given the speculative nature of cryptocurrency prices, this reliance on market conditions will create considerable uncertainty in Coinbase’s results going forward.

Financial Strengths:  

Coinbase is in an excellent financial position, particularly after receiving an influx of capital from private-investment-in-public-equity investors coinciding with its direct listing on the Nasdaq exchange. Coinbase saw a spike in trading volume in 2021, leading the company to generate more net income in the first quarter of the year than in the entirety of 2020. As a result, the company ended March 2022 with more than $6 billion in cash and $1.3 billion in cryptocurrency against less than $3.4 billion in debt. The decision to keep strong cash reserves makes sense given how volatile the company’s revenue generation can be. Coinbase needs to keep sufficient financial reserves to protect itself in the event of a major market collapse. The company relatively unleveraged will be an important step in keeping the company financially secure in the long term through market cycles, particularly as the further losses are expected for Coinbase as cryptocurrency markets remain weak.

Bulls Say: 

  • Coinbase has established itself as the leading U.S. cryptocurrency exchange and established a strong reputation for security in an industry filled with risk for traders.
  • Coinbase has been able to accelerate the rate at which it lists new cryptocurrencies, giving the company more exposure to the growth of the asset class.
  • There is a global market for cryptocurrency. Regulatory approval from international regulators will allow Coinbase to expand its operations and increase its footprint globally.

Company Description:  

Founded in 2012, Coinbase is the leading cryptocurrency exchange platform in the United States. The company intends to be the safe and regulation-compliant point of entry for retail investors and institutions into the cryptocurrency economy. Users can establish an account directly with the firm, instead of using an intermediary, and many choose to allow Coinbase to act as a custodian for their cryptocurrency, giving the company breadth beyond that of a traditional financial exchange. While the company still generates the majority of its revenue from transaction fees charged to its retail customers, Coinbase uses internal investment and acquisitions to expand into adjacent businesses, such as prime brokerage, data analytics, and collateralized lending.

(Source: Morningstar)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Laverne Investing. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Laverne and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Laverne and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Laverne and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Laverne and Banyan Tree do and seek to do business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Laverne and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Laverne and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Laverne and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Laverne and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and are not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Laverne and Banyan Tree.

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Currencies Trading Ideas & Charts

India to Launch its own digital currency in 2022-23

The Reserve Bank of India (RBI) intimated in October 2021 that it had got approval for a modification to the Reserve Bank of India Act 1934 that would broaden the definition of bank note to include CBDCs. The central government has emphasised the potential benefits of CBDCs, claiming that they will lessen reliance on fiat currencies.

In another major announcement, Sitharaman said that all income from the transfer of virtual digital assets will be taxed at 30%. This will impact gains from cryptocurrencies and NFTs.

She further highlighted that no deduction will be allowed for expenditure undertaken on its acquisition. The loss from transfer of virtual digital assets cannot be set off against any other income.

The Finance Minister also proposed to provide for TDS on payment made in relation to transfer of virtual digital assets at the rate of 1 percent of such consideration above a monetary threshold. Gift of virtual digital assets has also been proposed to be taxed in the hands of the recipient.

India’s crypto industry had several demands, including that the government classify cryptocurrencies, provide clarity on taxation and establish a self-regulatory framework shaped by the crypto industry.

Many countries have rolled out their CBDCs recently. Nigeria launched eNaira in October last year. The Bahamas and five other islands in the East Caribbean have also rolled out their digital currencies.

(Source: The Financial Express)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

Asia‘s first crypto ETF on the card, to be launched in India by Torus Kling blockchain

Golden bitcoins. Cryptocurrency on computer motherboard.

Torus Kling Blockchain IFSC, a joint venture between Mumbai-based Cosmea Financial Holdings and Hyderabad-based Kling Trading India, and the Bombay Stock Exchange’s (BSE) international branch, India INX, have signed a memorandum of understanding (MoU) to create digital asset-based products in India.

GIFT city’s IFSC will be used to trade the product (International Financial Services Centre). This will be done in a “sandbox” environment made feasible by the International Financial Services Centres Authority (IFSCA), which is in charge of regulating financial centres within SEZs (Special Economic Zones).Regulatory sandboxes are testing grounds for live trials of new fintech goods or services that are currently not subject to any regulatory oversight, in a controlled environment and under close supervision, with the goal of balancing product innovation and consumer protection.

Post obtaining all regulatory approvals, Indian investments in the ETF will be streamlined through RBI’s liberalised remittance scheme. The trading is expected to be allowed through a regular investment account, bypassing the risks associated with cryptocurrency exchanges.

Torus Kling Blockchain, which will also handle global distribution, is aiming for $1 billion in assets under management (AUM) from consumers that participate in these blockchain-backed products through ETFs and Discount certificates in the first two years.

This follows the lead of US regulations, which approved a Bitcoin Futures ETF last year, and the approval of Bitcoin and Ethereum spot ETFs to be listed on the Toronto Stock Exchange by Canadian financial regulatory authorities.

Crypto ETFs allow an investor to track cryptocurrency returns without having to invest in the digital tokens themselves, thereby circumventing the hassles and concerns associated with usual cryptocurrency exchanges.

(Source: The Times of India, Moneycontrol)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

Wallmart plans to enter the metaverse with crypto and NFTs

The retail behemoth would be the latest corporation to enter the nascent market of virtual worlds, sometimes known as the metaverse. Offering digital replicas of products in the form of NFTs through virtual, metaverse experiences, all paid for with a Walmart token, may be one example.

Walmart plans to expand into digital assets and virtual experiences, according to at least three applications with the USPTO on Dec. 30.

The trademark filings include the provision of a Walmart virtual currency, in addition to cryptocurrency exchange services using blockchain technology. A separate application to the USPTO describes downloadable software for uses ranging from e-commerce to augmented reality as well as managing a portfolio of cryptocurrencies.

Another filing details the possibility of a virtual reality game or online retail service featuring a marketplace of digital goods authenticated by NFTs. These goods could range from  home appliances to sporting goods, beauty products, patio furniture, and musical instruments—all listed in the trademark application.

All of these cryptocurrencies are non-fungible tokens (NFTs). NFTs are an option for Walmart’s digital offering. This ensures that the ownership of these items is documented on the blockchain. Such records are both timeless and enticing to a new generation of listeners.

(Source: The street)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

AUD/USD: Sour sentiment directs sellers towards 0.7200 ahead of China GDP

The Aussie pair’s slump the previous day could be linked to the overall rally in the US dollar backed by the increased chatters over Fed rate hike, as well as the virus woes. It’s worth noting the market’s caution ahead of China’s key economic data.

The US dollar cheered the last dose of the Fed comments before the policymakers sealed the blackout period ahead of next week’s Federal Open Market Committee (FOMC) meeting.

Federal Reserve Bank of New York President John Williams said Fed is approaching a decision to begin raising interest rates.

Further, US Retail Sales for December printed -1.9% MoM figure versus 0.0% expected and +0.2% prior. Further, the Michigan Consumer Sentiment Index for January also eased to 68.8 versus 70 forecasts and 70.6 previous readouts. The details also suggest that the highest inflation in 40 years weighs on consumer behavior.

It should be noted that Australia’s most populous state New South Wales (NSW) reported the biggest daily covid-linked deaths on Friday with 29 deaths, recently easing to 17 cases. Even so, Australian health authorities are confident NSW will see a plateau in its COVID-19 hospitalizations next week, as the state’s numbers track “better than the best-case scenario” predicted.

Moving on, China’s headline economics will be crucial for the AUD/USD traders ahead of Thursday’s Australia jobs report. That said, China’s Q4 2021 GDP is expected to rise 1.1% QoQ versus 0.2% prior while the Retail Sales may ease to 3.7% versus 3.9% for December. Additionally, Industrial Production for the said month is likely to have softened to 3.6% versus 3.8% YoY.

(Source: FXStreet)

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BetaShare Crypto Innovators: The First ASX crypto ETF make history on debut

BetaShares Crypto Innovators (CRYP) has broken trading records on its debut. After opening at $11.23 per unit the newly minted ETF finished the day at $11.19 per unit having climbed 11.19 per cent.

CRYP saw more than $8 million change hands in less than 15 minutes. By midday, trading volumes had soared to $24.5 million.

 The fund doesn’t directly invest in cryptocurrencies or digital assets, it invests in companies involved in those sectors, tracking the Bitwise Crypto Industry Innovators Index. CRYP’s index is intended to cover the complete range of the crypto ecosystem by offering exposure to pure-play crypto enterprises, companies with at least 75 percent of their balance sheets invested in crypto-assets, and diversified corporations with crypto-focused business lines. Its largest holding is in Silvergate Capital, followed by Marathon Digital Holdings and Galaxy Digital, which together represent just over one-third of CRYP’s total portfolio.

Cryptocurrency exchange platform Coinbase, bitcoin mining company Riot Blockchain, and business analytics provider Microstrategy are among CRYP’s holdings.

BetaShares said its portfolio has a year-to-date performance of nearly 133 per cent, with monthly performance of 28 per cent. In its information pack, however, the company said investment in CRYP should be considered “very high risk.”

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Omicron crypto surges over 200% after being named as new Covid-19 variant

Shortly after the World Health Organization (WHO) named Omicron as the new variant of concern for the recent mutation first found in Africa, investors fled to the new meme cryptocurrency Omicron (OMIC). 

The Omicron cryptocurrency gained 231% in the past 24 hours and reached an intraday’s high at $689. Despite the rising popularity of the coronavirus-themed coin, the market capitalization of OMIC remains unknown and only $496,407 was traded in the past day.

The Omicron token powers a decentralized reserve currency protocol on the Arbitrum Network, backed by a basket of assets, including USD coin (USDC) and liquidity provider tokens tied to MIM (Magic Internet Money).

The token was created in early November as a fork of OlympusDAO on the Arbitrum network and its protocol relies on stakers and bonders to ensure a return over a specified period of time. 

The Omicron token could continue surging if investors contribute to its yield farm by depositing funds within its protocols. Roughly $700,00 has been deposited within its protocols, which led to annual yields of around 70,000% for stakers unless the developers back out of the project.

According to the crypto project’s official documentation, the digital asset was created a few weeks before the World Health Organization named the variant Omicron. The project’s initial announcements do not mention anything about the coronavirus.

Omicron appears to be only available for purchase through decentralized exchange SushiSwap. Centralized exchanges have not started to support trading of the OMIC token yet.

(Source: FXStreet.com)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.