Tag Archives: Currency market

Musk’s Tesla said it has invested $1.5 billion in Bitcoin, bringing the cryptocurrency to a record high of nearly $44,000 | Instant News


Elon Musk’s Tesla Inc. stated that it had acquired $1.5 billion in Bitcoin in January and that it could accept payments in the world’s number one digital asset in the future.

Tesla
TSLA,
+ 2.20%

The purchase was revealed on Monday in the Securities and Exchange Commission (Securities and Exchange Commission) regulatory documents, which helped push up the price of Bitcoin
BTCUSD,
+ 12.92%

To around $44,203, it was up more than 13% in CoinDesk’s early trading.

Tesla stated in its 10-K application to the U.S. market regulator: “In January 2021, we updated our investment policy to provide us with greater flexibility to further diversify and maximize our Cash return, which is not needed to maintain sufficient operational liquidity.”

The document continues: “Furthermore, we hope that in the near future, in accordance with applicable laws and on a limited basis, we will begin to accept Bitcoin as a payment method for our products. After payment is received, we may or may not Liquidation.”

This move is because Musk has recently won greater support for digital assets on his social platform.

Late January Musk Mark Using the cryptocurrency in his Twitter biography, then adding the hashtag #bitcoin to his Twitter resume, and then he wrote on Twitter: “In retrospect, it was inevitable.” At the beginning of this month Musk posted “doge” on Twitter with no further comments, Refers to the digital asset meme asset Dogecoin.

Tesla became one of the larger companies that invested in Bitcoin and allowed payments through digital assets created in 2009.

Wedbush analyst Dan Ives wrote in Monday’s study: “Although many people on Wall Street are discussing the prospects of Tesla’s move, this morning’s news made Musk and Tesla The strategy of jumping into the abyss of Bitcoin and cryptocurrency is formalized.” Attention.

However, other mainstream companies have begun to make headlines, focusing on their interest in Bitcoin and making virtual assets part of their balance sheets.

As early as 2020, the software company MicroStrategy
MSTR,
+ 15.29%

Said that it invested in Bitcoin in September 2020, thus achieving a leap of faith. According to the announcement on August 11, the token received 21,454 bitcoins, worth 250 million U.S. dollars at the time, and became the entity’s reserve assets. Coin Telegraph Report.

Microstrategy’s move raises the question of whether other companies might consider investing some of their reserve assets in Bitcoin.

Ives wrote: “Ultimately, investors and other industry observers will pay close attention to this to understand whether other companies have followed Tesla’s leadership approach to cryptocurrency, or on the other hand, it is still Are the few names that make Bitcoin strategically leap forward?”.

Bitcoin’s record rise is mainly due to the interest of institutional investors and businesses.PayPal Holdings Limited
PYPL,
+ 3.07%

After a narrower deployment, its cryptocurrency platform was opened to all US customers last November.

Investment experts said that as the Dow Jones Industrial Average has risen, the rise in the price of Bitcoin is also drawing attention to the asset.
Taoism
+ 0.63%

And the S&P 500 Index
SPX,
+ 0.49%

Let market participants worry about the overvaluation of stocks when interest rates are around 0%.

So far, the price of Bitcoin has soared by 50% in 2021.At the same time, the S&P 500 has risen 3.5% so far, the Dow Jones Industrial Average has risen 1.8% so far, and the high-tech Nasdaq Composite Index
COMP,
+ 0.49%

It is up 7.5% so far this year.Gold price
GC00,
+1.26%

It has fallen 3.5% so far this year.

Several prominent Wall Street investors including Stanley Druckenmiller and Paul Tudor Jones have accepted Bitcoin. Bill Miller, the famous investor of the founder of Miller Value Partners Letter to customers An article published on the company’s website earlier this month reiterated his optimistic view of Bitcoin.

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The future of startup cryptocurrency Ripple hangs on the SEC’s case | Instant News


Brad Garlinghouse, Ripple’s chief executive, last year publicly contemplated at the World Economic Forum in Davos, Switzerland, the initial public offering for the San Francisco startup.

The company recently raised about $ 200 million in a venture funding round led by Tetragon Financial Group, with a valuation of $ 10 billion. The value of its flagship product, a cryptocurrency called XRP, has fallen over the previous year. But Ripple is poised to rebuild the infrastructure for cross-border trade, said Garlinghouse, promising that its future is bright.

A year later, the IPO was canceled. Instead, Ripple’s future hinges on the judge’s decision in a civil suit filed in December by the Securities and Exchange Commission.

Regardless of the outcome, this case is expected to set a major precedent for how US regulators create rules and laws covering cryptocurrencies. It also highlights a broader truth about most digital currencies: Beyond the two largest, bitcoin and ether, most of the hundreds of others have struggled to find utilitarian value beyond speculation.

At the heart of the SEC’s suit is the debate about XRP, a bitcoin-like digital asset created by the founder of Ripple that will grow to become the world’s third-largest cryptocurrency. It is designed to be part of a network that will help banks cut costs in cross-border transfers. The related software, however, never gained traction, the SEC accused, leaving XRP with no apparent purpose, other than to funnel sales to Ripple.

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Australian dollars that go up to 76 cents can make an Australian rich | Instant News


Australia, you are getting richer. The average Australian household has thousands of extra dollars that they may not even realize.

Let me explain. Not the money you expect, and not easy money to use. But for some, this is a huge advantage.

This is the reason. Our dollar has gone up. You now have more money! Yes, you do as long as you are happy with the US dollar.

Say you have $ 100,000 in total net assets. Coming back on 1 January 2020 you can exchange that Australian money for US $ 70,200. If you do the same you now earn $ 76,200. That means US $ 6,000 more, just for doing nothing!

RELATED: Two weeks until Australia goes bankrupt

Basically all Australians are playing in the currency market, whether we know it or not.

If you have any money at all, you are betting on the Aussie dollar. Our assets are in Aussie dollars so when the Aussie dollar rises, we get richer in other parts of the world. Yes, you are basically a currency investor, even if you have never thought of it that way.

Of course, if you live in Australia all the time, one Aussie dollar always equals one Aussie dollar. Currency fluctuations are less of a problem, especially when you can’t leave the country to go on vacation.

But if you are considering moving to another country, then timing it with movements in the currency market can either make money or save you money.

Above, I gave an example of a person with $ 100,000 who is now $ 6,000 richer in US dollars. Having $ 100,000 sounds good. But it’s actually a small amount by Australian standards. The Australian median has more than that.

As the next chart shows, household wealth averaged over half a million dollars in 2018.

RELATED: Australia’s absurd reaction to the crisis

So, if you have that median amount, this year’s currency hike gives you $ 30,000. You now have over $ US380,000.

Back in January you couldn’t afford this charming item A 3 bedroom, 4 bath house outside Palm Springs California. Now, with currency appreciation, you can buy them in cash. Hope you like golf!

RELATED: Bad news for Australian house prices

Of course not everyone is as rich as each other. Australia has poor people and rich people.

To be in the top 1 percent of households, you need more than $ 9 million in assets. The top 1 percent has earned half a million US dollars in rising currency. They were previously incapable This 5 bedroom, 6 bathroom home in Beverley Hills. Now they can.

For most Australians, the biggest single determinant of how much wealth we have is how old we are. We started with nothing and we got up. As the following chart shows, wealth peaks right at the end of your tenure, in the early sixties.

Those people – those who are about to retire – have benefited greatly from currency appreciation. They are also the ones who have the greatest opportunity to go and spend money abroad! (We all have to work, unfortunately.) Their Airbnb in Malibu will now work out much cheaper in Australian dollars.

GREAT PICTURE

Of course, the Australian dollar is still only $ US 0.76. This has surged to its highest level since early 2018, but not that high historically.

In 2011, the dollar surpassed US $ 1.10 and went to America very cheaply. Places that seem out of reach – New York, Aspen, etc. – are starting to seem that cheap. Or at least affordable

The big increase in the Australian dollar came after the last economic crisis in the US, when the Australian economy did much better than America’s. If the pattern repeats itself, we can see our dollar rising a little higher. If that happens, see you in LA!

Jason Murphy is an economist. | @jasemury. He is the author of the book Incentivology.

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The Australian dollar surged on record iron ore prices amid Chinese tensions | Instant News


BHP Billiton Ltd. freight trains. carrying iron ore along the rail line to Port Hedland, Australia.

Ian Waldie | Bloomberg | Getty Images

SINGAPORE – The Australian dollar has surged to its highest level in more than two years, helped by surging iron ore prices.

Last weekend, it jumped past 0.75 against the dollar, the highest not seen since 2018. The Australian currency has shot higher, rocketing nearly 8% against the dollar since the start of this year.

“The AUD continues to surge, trading above 0.7570 over Asia on Friday, helped by rising commodity prices over the past week and surging iron ore prices due to a number of factors including the weather in Port Hedland,” Tapas said. Strickland, director of economics and markets at National Australia Bank. Port Hedland is a city in Western Australia.

Analysts said iron ore prices had risen as demand from China increased, and had been supported by reduced supply and disruptions caused by the hurricane that hit Australia, the world’s biggest producer.

Iron ore contracts on China’s Dalian Commodity Exchange jumped nearly 10% on Friday to an all-time high, past the 1,000 yuan ($ 152.95) per tonne mark for the first time in history.

Hayden Dimes at ANZ Research on Monday attributed the increase in prices to strong demand from China. Australia accounted for about 60% of total world seaborne shipments in 2019, according to the World Steel Association.

“There is no doubt that Chinese demand is stronger than expected amid fiscal stimulus measures. However, the threat of further supply disruptions is accelerating this,” he said.

China’s economy has largely recovered from the worst-hit coronavirus attack, driven in part by channeling stimulus into infrastructure. That has led to a surge in demand for iron ore, a material for making steel.

China buys most of Australia’s iron ore, which avoided a year-long deterioration in relations that destroyed much of Australia’s exports to the Asian country.

“Rising iron ore prices … are helping AUD to ignore bad news, including a further deterioration in the Australian-China government relationship,” added the Commonwealth Bank of Australia (CBA) in a note on Monday. Commodity prices are the main driver of the Australian dollar’s fair value, he added.

Many of Australia’s exports – including wine, barley and cotton – have been caught up in the country’s geopolitical tensions with China, largest trading partner. Bilateral relations between Canberra and Beijing deteriorated earlier this year after Australia supported a a growing call for international inquiry into dealing with the coronavirus pandemic in China.

Iron ore, however, has avoided a growing dispute – which the CBA attributes very few alternatives that China has.

“With China accounting for 80–85% of Australia’s iron ore exports, the fall in Australian iron ore exports has raised concerns that China might limit imports from Australia,” said Vivek Dhar, director of mining and energy commodities research at the bank. .

Compared to the previous four weeks, Australian iron ore exports have decreased by about 6.1% in the week ended December 4 – which Dhar said was “unusual” for this time of year.

“And while those concerns are justified given Australia’s exports of coal and copper concentrate to China have faced unofficial restrictions this year, we think it’s too early to make a similar call for iron ore,” he said.

– Elliot Smith of CNBC and Saheli Roy Choudhury contributed to this report.

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Brexit countdown, Australian dollar strengthens | Instant News


An employee manually calculates £ 20 in this set up photo at a Travelex shop in London, United Kingdom, on March 6, 2013.

Simon Dawson | Bloomberg | Getty Images

Pressure eased on the dollar on Friday, with the currency set to end three straight weeks of losses, while sterling took losses on fears a post-Brexit trade deal may not be reached before the end of 2020.

Overnight, hopes of a global economic rebound and a fading pandemic in 2021 had investors betting on risk currencies linked to rising commodity prices such as the Australian and Canadian dollars, both hitting 2018 highs.

But the US dollar returned to early European trade as the mood deteriorated and Brexit concerns added to the delay in facing new US fiscal stimulus.

At 1144 GMT, pressure from the dollar, which is again up 0.3% against a basket of major currencies, is trading at 91.036 and away from a two-and-a-half year low of 90.471 hit a week ago.

“Overall this is a risk aversion step,” said Kit Juckes, foreign exchange strategist at Societe General. Given the dollar’s recent losses, he said, it would not be surprising to see some investors opening up some of their positions.

He added that the state of the post-Brexit trade talks is weighing on the market. Britain is now more likely to leave the European Union on December 31 without a trade deal than with a deal, an EU official quoted the head of the European Commission as telling the bloc’s 27 national leaders.

Sterling suffered heavy losses and was down about 0.8% at $ 1.3185 before a tough weekend. UK and EU negotiators have been told they have until the end of Sunday to decide whether a trade deal is possible.

The move in the options market suggests traders are bracing for turmoil, with implied one-week volatility at nine-month highs and sterling premiums putting calls near the highest since April as investors pay for downside protection.

The euro was also lower against the dollar, losing 0.23% at $ 1.2115 after Thursday’s gain, when the European Central Bank announced a new round of stimulus in line with market expectations. EU leaders also reached compromises on the pandemic aid package.

The euro has jumped 15% from a three-year low at the height of the panic in March. Have

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