Bitcoin Price Falters at $64K Again — Here’s Why

The disappointment will now call into question that run of outperformance and leave pairs like GBP/AUD looking better protected on the downside.

Source: Poundsterlinglive

The USD/CAD pair recaptures a seven-week high near 1.3650 in Tuesday’s European session. The Loonie asset strengthens amid weakness across the Canadian Dollar’s (CAD) performance ahead of Canada’s Employment data for September, which will be published on Friday.

The Canadian job report is expected to show that the economy added 28K workers, higher than 22.1K in August. In the same period, economists expect the Unemployment Rate to have risen further to 6.7%. Signs of further deterioration in labor market conditions would prompt speculation for more Bank of Canada (BoC) interest rate cuts. This year, the BoC has already reduced its interest rates by 75 basis points (bps) to 4.25% as inflation has returned to the bank’s target of 2% and the economic outlook is vulnerable.

Meanwhile, the US Dollar (USD) struggles to extend its upside as investors shift focus to the United States (US) Consumer Price Index (CPI) data for September, which will be published on Thursday. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, clings to gains near 102.50.

The US inflation data is expected to influence market expectations for the Federal Reserve’s (Fed) interest rate outlook. Currently, financial market participants expect the Fed to reduce its key borrowing rates again in November but with a smaller rate cut of 25 basis points (bps).

In Tuesday’s late Asian session, the comments from Fed Governor Adriana Kugler indicated that the policymaker sees more rate cuts as appropriate if price pressures continue to decline as expected.

Source: FXSTREET

Bringing electricity supply to several hundred million of the world’s poorest would require investments of $21.3 billion by 2030.

This is according to the Global Association for the off-grid solar energy industry, which said the sum is six times larger than what it has managed to attract in investments so far, as Bloomberg reported.

The annual sum that needs to be spent on opening access to electricity to those without it would come in at about $3.6 billion over the period.

“Access to finance remains a significant challenge for the off-grid solar industry,” GOGLA said in a new report, as access to electricity actually worsens instead of improving. In 2022, the number of people without access to electricity rose for the first time in 20 years, to 685 million. This is the latest data available, the report noted.

The great majority of people without access to electricity live in sub-Saharan Africa and the numbers are rising. In 2010, 50% of those lived in the region. By 2022, this has risen to 85%, the industry association also reported.

The cheapest way to provide electrification to these no-access areas is off-grid solar, according to GOGLA, but it needs financial support from other entities. Per the organization’s proposal, a mix of debt, subsidies, and equity would do the job.

Africa has long been seen as a perfect destination for wind and solar investors but there have been obstacles. Lacking grid infrastructure is perhaps the biggest of these, along with poverty that makes it hard for many to afford electricity supply.

Currently, the World Bank and the African Development Bank are working on a plan to bring electricity to 300 million across Africa by 2030. The two have promised to provide $30 billion for the project, raising another $90 billion from other investors.

Source: OILPRICE

EUR/USD rises to near the psychological resistance of 1.1000 in Tuesday’s European session. The major currency pair recovers mildly as the US Dollar (USD) faces a slight correction, with investors shifting focus to the United States (US) Consumer Price Index (CPI) data for September, which will be published on Thursday.

The inflation data is expected to show that the annual core CPI – which excludes volatile food and energy prices – has grown at a steady pace of 3.2% year-over-year (YoY). The headline inflation is estimated to have decelerated to 2.3% YoY from 2.5% in August.

The impact of the inflation data is expected to be lower on the Federal Reserve’s (Fed) interest rate outlook as policymakers are more focused on reviving economic growth and consumer spending. The comments from Fed Governor Adriana Kugler in Tuesday’s European session suggested that the policymaker sees more rate cuts as appropriate if price pressures continue to decline as expected.

Meanwhile, financial market participants expect the Fed to cut interest rates again in November, but the rate-cut size is expected to be 25 basis points (bps), according to the CME FedWatch tool. Lately, market speculation for a Fed 50 bps rate cut waned after the US job report for September, which showed that labor demand remained robust and wage growth was stronger than expected.

Daily digest market movers: EUR/USD rises slightly despite ECB Nagel is open for more rate cuts

EUR/USD edges higher amid a mild correction in the US Dollar. The outlook of the Euro (EUR) remains fragile as a majority of European Central Bank (ECB) officials continue to emphasize the need to reduce interest rates further due to a sharp deceleration in Eurozone price pressures and poor economic growth.

In an interview with Table Media, ECB policymaker and Bundesbank President Joachim Nagel said, "I am certainly open to considering whether we could possibly make another interest rate cut.” Nagel has also agreed with the revision of the Eurozone’s Gross Domestic Product (GDP) forecast for 2024 to a 0.2% contraction against a prior projection of 0.3% growth.

However, the German Industrial Production for August has come in better than expected. On a monthly basis, Industrial Production grew at a robust pace of 2.9%, compared to estimates of 0.8% after contracting by 2.4% in July.

Meanwhile, ECB policymaker and Austrian central bank Governor Robert Holzmann advised to proceed with caution on further interest rate cuts as inflation has yet not been defeated, in his comments while interviewing with Sueddeutsche Zeitung published on Monday. In September, the Eurozone flash Harmonized Index of Consumer Prices (HICP) decelerated to 1.8% year-on-year.

Technical Analysis: EUR/USD remains below 1.1000

EUR/USD gathers strength to gain ground near the immediate support of 1.0950. The major currency pair is broadly under pressure as it has delivered a breakdown of a Double Top chart pattern formation on a daily timeframe. The above-mentioned chart pattern was triggered after the shared currency pair broke below the September 11 low of 1.1000.

The 14-day Relative Strength Index (RSI) slides below 40.00. A bearish momentum would trigger if the RSI sustains below the same.

Looking down, the pair is expected to find support near the 200-day Exponential Moving Average (EMA) around 1.0900. On the upside, the 20-day EMA at 1.1070 and the September high around 1.1200 will be major resistance zones.

Source: FXSTREET

South Korea and Singapore have agreed to embark on a strategic partnership next year, marking the 50th anniversary of their establishment of diplomatic relations, the city state's Prime Minister Lawrence Wong said on Tuesday.

The two nations signed an extradition treaty and will look to deepen cooperation in fields such as artificial intelligence, defence and climate change, as well as upgrade their free trade pact.

"The upgrade is not just a change in name; it also means more substantial cooperation," Wong told a joint press conference with South Korean President Yoon Suk Yeol, who is on a state visit.

Both countries have many attributes in common, Wong added. "We were both 'Asian Tigers' that successfully transformed our economies," he said.

"And because we have benefitted greatly from regional peace and stability, we now seek to do our part to contribute towards the rule of law and strengthening the rules-based global order."

In addition, South Korea, the world's No.3 importer of liquefied natural gas (LNG), and Singapore, an LNG hub, signed a deal on cooperation in LNG supplies to benefit (from the) stability of the international supply chain, Yoon said in televised remarks.

Joint efforts could range from LNG swaps and joint purchases, to cooperation in tackling LNG supply chain crises, the Yonhap news agency said.

The countries also signed four pacts on supply chains, technology cooperation, food safety, and start-ups.

Yoon, who visited the Philippines this week, wraps up his trip to Singapore on Wednesday, before heading to Laos for a regional summit of leaders of the Association of Southeast Asian Nations (Asean) and several other Asian countries.

Seoul will participate in joint military exercises with Asean, and step up defence industry cooperation, the Straits Times newspaper quoted Yoon as saying in a written interview.

It will also work jointly to combat emerging threats, such as cyber and transnational crime, he added.

Source: Theedgemarkets