Market News by OnEquity

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Dollar Steady Ahead of Fed Meeting; Traders Remain on Alert

The US dollar was trading flat on Tuesday as traders remained cautious and on alert ahead of the start of the Federal Reserve’s latest interest rate meeting. Here is what is moving the currency market today.

Dollar Quiet Ahead of Fed Meeting​

The Federal Reserve begins its two-day policy meeting on Tuesday and is expected to leave rates unchanged on Wednesday.

The US central bank is expected to keep rates unchanged this week, although traders will be watching for any hints from Fed Chairman Jerome Powell on how soon policymakers might agree to cut rates during his press conference.

Weak inflation readings coupled with dovish comments from Fed policymakers have led markets to increase bets that September is likely to be the start of the rate cuts, with an expected reduction of around 25 basis points.

Likewise, Powell has the Jackson Hole meeting of central bankers in August to further guide the market, but if he does not give clear signals on a September cut this week, it is likely to lead to a strengthening of the dollar and US Treasuries.

Pound Falls on BoE Uncertainty​

In Europe, GBP/USD was slightly down at 1.2857 ahead of Thursday’s Bank of England meeting.

There is a lot of uncertainty surrounding this meeting, as key policymakers have not spoken openly in two months due to the rules in the run-up to the general election earlier this month.

Policymakers have to weigh higher-than-estimated services price inflation against weak growth, with an unchanged resolution being a marginal favorite at the moment.

EUR/USD rose 0.1% to 1.0829 after the release of mixed Eurozone growth data.

France’s economy grew slightly stronger than estimated in the second quarter, by 0.3% in the three months ending in June.

However, this relatively positive news was overshadowed by a surprising contraction in Germany’s economy, which shrank by 0.1% in the second quarter compared to the previous three-month period.

Yen Loses Some of Its Gains​

In Asia, USD/JPY rose about 0.5% to 154.78, and the yen gave up some of its gains ahead of the Bank of Japan’s meeting on Wednesday.

Analysts are divided on whether the central bank will keep interest rates unchanged or opt for a 10-15 basis point hike.

Besides interest rates, the Bank of Japan is expected to show signs of strength and end its quantitative easing policy. At its June meeting, the central bank stated that in July it would set out its plans to phase out its asset purchase program.

The USD/CNY was down 0.1% at 7.2496, near an eight-month high, amid continued concerns about slowing economic growth in China.

 

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US Stocks Rise, Caution Ahead of Fed Meeting and Microsoft Results​

US stocks rose on Tuesday in a cautious environment ahead of the Federal Reserve meeting and the release of results from some of the largest US companies. Here is what is happening in the stock market.

Fed Meeting Awaited for More Clues on Interest Rates​

Markets are on edge ahead of the Federal Reserve’s latest meeting, which is set to start late Tuesday and end Wednesday.

The central bank is expected to leave interest rates unchanged. After June’s benign inflation report, investors will be looking for Fed Chairman Jerome Powell to lay the groundwork for a rate cut in September.

Fed officials have repeatedly stated that they are looking for more evidence that inflation is steadily returning to 2% before cutting rates. However, Powell signaled earlier this month that the Fed may not wait until inflation achieves this target before cutting rates.

Markets have fully priced in a 25 basis point cut in September, with a slight possibility of a nearly 50 basis point reduction, and have priced in 66 basis points of easing by the end of the year.

Microsoft Begins Next Round of Big Tech Results​

There are still more key results to digest this week, starting with Microsoft (MSFT), which will release its June quarter results on Tuesday after the bell.

Although the company is expected to post considerable profit growth due to new AI-related products, investors will be paying close attention to rising expenses and whether demand for artificial intelligence will be enough to drive profit.

The increased caution comes after high spending on artificial intelligence and sluggish revenue metrics last week marred strong earnings results from Alphabet (GOOGL).

In addition to Microsoft, technology heavyweights Meta Platforms (META) and Apple (AAPL) will release their earnings reports on Wednesday and Thursday, respectively.

Advanced Micro Devices (AMD), Merck (MRK), Procter & Gamble (PG), and Pfizer (PFE) are also due to report results.

Labor Market Data​

Several labor market data points will be released this week, starting on Tuesday with job postings for the month of June.

On Friday, July nonfarm payrolls will be released, and are expected to indicate that the US economy added about 177,000 jobs in July, down from 206,000 last month.

The release will be closely scrutinized by investors, who will be looking to see if recent signs of cooling in the labor market continued in July, which could influence when the Federal Reserve begins to cut interest rates.

Crude Oil Prices Fall​

Crude oil prices fell on Tuesday, nearing two-month lows, due to concerns about demand in China, the world’s biggest crude importer, as traders ignored the risk of escalating conflict in the Middle East.

Traders dismissed the risk premium in crude oil after media reports indicated that Israeli authorities did not intend to start an all-out war with Lebanon in response to a rocket attack that killed 12 people in the Israeli-occupied Golan Heights.

The Organization of Petroleum Exporting Countries is meeting this week to discuss production levels. However, recent weakness in crude oil could lead the cartel to downplay any plans to cut output.

 

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U.S. Recession Indicator Close to Turning On
According to FRED data, the threshold will be breached if the unemployment rate rises to 4.2% in this week’s employment report, which is set for release on August 2.

Economists’ Forecast for the July 2024 Employment Report​

The preliminary forecast for the July employment report, to be released Friday, calls for a net gain of 200,000 jobs, with the unemployment rate expected to fall from 4.1% to 4%, according to the analyst blog The Real Economy on July 29.

Analyst Joseph Brusuelas also anticipates a 0.2% increase in average hourly earnings, which corresponds to a year-over-year increase of 3.7%. Seasonal hiring in the leisure and hospitality sector will likely be an important factor in the report. July usually presents seasonal adjustment challenges for the Bureau of Labor Statistics, and this year is no exception.

If the estimate is incorrect, it could point to a faster pace of hiring overall. Additionally, the direction of the unemployment rate will be a key issue, as it has been rising due to more people entering the labor market, enticed by higher wages.

Expert Urges Fed to Cut Rates Soon to Ease Recession​

While Wall Street expects Fed Chairman Jerome Powell to cut the prime rate at a Fed meeting in September, experts warn that it may already be too late to avoid a recession. Goldman Sachs and UBS predict a rate cut before the November presidential election, but not as soon as the Fed’s July meeting.

One supporter of an earlier rate cut is former New York Fed President Bill Dudley, who initially advocated for higher rates for longer but now urges an immediate cut.

The former New York Fed president argues that the economic outlook has shifted due to slowing consumer spending, rising auto repossessions, and loan defaults.

“The facts have changed, so I’ve changed my mind. The Fed should cut, preferably at next week’s monetary policy meeting,” Dudley said on July 24.

He believes the Fed should act quickly despite skepticism about the severity of rising unemployment. Dudley stresses that delaying rate cuts could raise the risk of recession, even if it is already inevitable.

 

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Ether ETFs Rack Up $340 Million in Outflows in Their First Week

Outflows of more than $1.5 billion from the high-fee Grayscale Ethereum Trust have outpaced inflows into other spot products.

Negative Net Flows in the First Week​

Spot Ether (ETH) exchange-traded funds (ETFs) saw negative net flows in their first week due to heavy outflows from Grayscale’s Ethereum Trust (ETHE), which outpaced interest in competing products. Similar Bitcoin (BTC) funds, which debuted in January, captured $1 billion in net flows over the first four days, despite also suffering notable outflows from an existing Grayscale fund. Overall, spot ETH ETFs supported $340 million in negative net flows, with more than $1.5 billion exiting the Grayscale Trust fund, according to Farside Investors.

Ether Price Impact​

The price action seemed to replicate the lackluster ETF action, with Ether falling 5% the previous week while Bitcoin rose 2%. Excluding Grayscale’s ETHE, the other recently-listed Ether ETFs pulled in $1.15 billion in proceeds the previous week, led by offerings from BlackRock, Bitwise, and Fidelity.

Future Outlook for Ether ETFs​

Although the current pace of ETHE outflows suggests the fund could run out of assets over the next four weeks, analysts expect them to start tapering off later this week. Quinn Thompson, founder of the digital asset hedge fund Lekker Capital, noted that ETHE has already lost the same amount of assets as GBTC when Bitcoin set a local low in late January during its post-ETHE selloff. BTC fell 15% to below $39,000 within two weeks before subsequently rebounding to hit new all-time highs.

Mads Eberhardt, principal cryptocurrency analyst at Steno Research, noted that GBTC outflows slowed considerably after the eleventh trading session and predicted that ETHE could follow suit. “Ethereum ETF net outflows have not yet declined, but it is likely to happen this week,” Eberhardt said in a post on X on Monday. “When it does, it will only be to the upside from there,” he added.

 

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Dollar falls ahead of Fed decision; yen rises on BOJ hike
The U.S. dollar declined on Wednesday in anticipation of the Federal Reserve’s latest interest rate meeting, while the Japanese yen soared after the Bank of Japan decided to tighten monetary policy. Below we will discuss what is happening in the currency market.

Dollar Loses Ground Ahead of Fed Decision​

The Federal Reserve ends its two-day meeting today, Wednesday, which is expected to leave interest rates unchanged.

The Fed is widely expected to keep rates unchanged this week, although the dollar is showing signs of weakness as traders expect Fed Chairman Jerome Powell to set the stage for a rate cut at the next meeting of the U.S. central bank.

For many analysts it is certain that Powell will reiterate a tone of voice marked by caution regarding inflation, but he has often been the voice of a more dovish faction of the FOMC and the press conference could generate some negative headlines that may directly affect the dollar

The general consensus is for a 25 basis point cut in September, according to CME Fedwatch.

Pound falls on Bank of England uncertainty​

GBP/USD was down about 0.1% at 1.2826 ahead of the Bank of England’s meeting on Thursday, which is expected to either keep rates in line or cut them.

UBS believes the BoE will make the first 25 basis point cut tomorrow, asserting that the main reason the bank is expected to make cuts is due to the latest data.

Many analysts believe that first, June’s headline inflation of 2% was also on the Bank’s May forecast lines, despite upside surprises in April and May. Second, the overshooting of services inflation, which registered 5.7% in June, compared to the 5.1% estimated by the Bank, was largely due to various volatile and regulated components, which should not affect the inflation outlook in the medium term, an assessment shared by several members of the Monetary Policy Committee, according to the June minutes.

Third, the July labor market report indicated further signs of slowing wage growth, with private sector regulatory wages declining 0.3 percentage point to 5.6% y-o-y in May, in line with the Bank’s May forecast.

The EUR/USD rose 0.1% to 1.0823 after the eurozone economy grew by about 0.3% in the first three months of June, barely above estimates.

Likewise, eurozone consumer prices rose by 2.6% in July at a year-on-year rate, slightly above the 2.5% estimated, while the underlying figure, which does not take into account volatile items such as energy and food, came in at 2.9% at an annual rate.

Yen soars on Bank of Japan hike​

In Asia, the USD/JPY lost about 1.4% to 150.66 and the yen soared after the Bank of Japan decided to raise its benchmark short-term interest rate by 15 basis points to about 0.25%, the highest level on market expectations.

It also announced that it will halve the pace of Japanese government debt purchases, from 6 trillion yen in the first quarter of 2026 to 3 trillion yen ($19.5 billion).

The yen had posted strong gains during July, with USD/JPY down about 6.5%, as a combination of carry trades and suspicions of government intervention triggered buying in the currency.

USD/CNY retreated 0.4% to 7.2256 as good purchasing managers’ index data and positive comments from the government raised expectations of more stimulus measures in the country.

AUD/USD fell 0.7% to 0.6492, touching three-month lows, driven primarily by weak June quarter CPI data.

Although headline CPI rose as expected in the quarter, the decline in core inflation fueled hopes that inflation will ease in the coming months, reducing the need for a rate hike by the RBA.

 

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U.S. Stock Markets Soar Boosted by Federal Reserve Decision, Microsoft Fails to Deliver​

U.S. stocks rose Wednesday on optimism that the Federal Reserve will lead the way to a rate cut in September, overshadowing disappointing results from Microsoft. Here’s what’s happening today in the stock market.

Optimism about the Fed​

All eyes are on the Federal Reserve on Wednesday as the U.S. central bank wraps up its latest policy-setting meeting.

The Fed is expected to keep its benchmark overnight interest rate in the current range of 5.25% to 5.50%, as has been the case since last July. However, investors expect policymakers to lay the groundwork for a rate cut in September.

Futures indicate a quarter-point rate easing in September, with a remote possibility of a 50 basis point reduction, and 66 basis points of easing by Christmas.

Wall Street’s major indexes ended mixed on Tuesday, with both the S&P 500 and NASDAQ Composite on track to end the month lower. The NASDAQ Composite lost nearly 3%.

Meanwhile, the Dow Jones Industrial Average is on track to end the month up more than 4% as the market has moved away from large tech stocks in favor of smaller, more cyclical-oriented companies.

Microsoft’s Earnings Miss Projections​

Aside from the Fed, investors will also have to digest quarterly results from several market heavyweights.

Microsoft (MSFT) shares lost nearly 3% before the market opened after its fourth-quarter cloud revenue growth missed market estimates.

While the company’s global profit barely beat estimates for the June quarter, revenue from Azure, Microsoft’s cloud business, rose 29%, below estimates of 30.2% and slowing compared to the previous quarter’s 31% increase. This occurred despite a $5 billion investment in artificial intelligence during the quarter.

On the flip side, shares of Advanced Micro Devices (AMD) rose 9% before the market opened, while rival NVIDIA (NVDA) added nearly 5% after AMD generated better-than-estimated earnings and forecast positive revenue for the current quarter, citing strong demand in artificial intelligence.

AMD’s earnings highlighted a potential divide in AI-supported profits, where vendors of AI-enabled equipment appear to be outperforming their customers.

Meta Platforms, Next​

Meta Platforms (META) is the latest of the large-cap tech giants to release quarterly results this week after the market close.

Meta, which owns and operates Facebook, Instagram, Threads, and WhatsApp, among other products and services, is expected to report a 20% increase in quarterly revenue.

Other companies releasing figures include Boeing (BA) before the bell, as well as Qualcomm (QCOM), Etsy (ETSY), and Carvana (CVNA) just after the session closes.

Crude Oil Prices Soar on Middle East Tensions​

Crude oil prices soared on Wednesday as the assassination of Hamas leader Ismail Haniyeh in Iran heightened tensions in the Middle East, raising the possibility of a wider conflict impacting supply.

Multiple media outlets reported that Ismail Haniyeh was killed in an Israeli strike, which could escalate the conflict between Israel and Hamas, which extended into its ninth month in July.

It could also mean an escalation of tensions between Iran and Israel, following a series of missile strikes between the two earlier this year, and stoke fears of all-out war in the Middle East, especially after Israel carried out strikes on Tuesday against the Lebanon-based, Iranian-backed group Hezbollah.

The news has overshadowed data from the American Petroleum Institute, which reported that U.S. inventories fell by nearly 4.5 million barrels the previous week.

If corroborated by official data to be released later in the session, this would mark the fifth straight week of declining U.S. inventories, as demand for fuel remained supported by the travel-filled summer season.

 

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Senator Lummis Introduces Bill to Establish a Bitcoin Reserve in the U.S.

The bill, abbreviated as the “BITCOIN Act of 2024,” calls for the U.S. Treasury to purchase bitcoins over a 5-year period until a pool of 1,000,000 BTC is achieved. The plan to incorporate Bitcoin (BTC) into the U.S. national reserves is beginning to take shape. U.S. Senator Cynthia Lummis has advanced the first draft of a bill that would enable the creation of a new “Bitcoin Strategic Reserve” and would set a path for the United States to have funds in that cryptocurrency. This was reported Wednesday by CoinDesk and The Block, which have had access to the document.

Dubbed the “Boosting Innovation, Technology, and Competitiveness through Nationally Optimized Investment Act of 2024,” or the “BITCOIN Act of 2024” for short, the bill proposes that purchases of the cryptocurrency would be funded in part by the appreciation of gold certificates held by the Federal Reserve System.

Lummis, a Wyoming Republican known for her pro-Bitcoin stance, announced her intention to propose the reserve on Saturday during the “Bitcoin 2024” conference in Nashville. She took the stage minutes after former President Donald Trump, a Republican candidate in this year’s presidential race, delivered a speech in favor of the cryptocurrency industry. Trump further proposed the formation of a “strategic national Bitcoin reserve” and made other related promises should he win the White House in November.

Bitcoin National Reserve: The Draft​

According to reports, the draft states that the U.S. Treasury Secretary would set up a “Bitcoin Purchase Program” of up to 200,000 BTC per year for a period of five years, up to a total stash of 1 million bitcoins, currently valued at more than USD $1 billion. The bitcoins would be held for at least 20 years and would only be available to pay down the federal debt. Thereafter, no more than 10% of the assets could be sold within any two-year period.

The bill requires the Treasury Department to make public quarterly reports on Bitcoin holdings and post them on its website, the reports said. It also states that U.S. states will be able to voluntarily participate in holding Bitcoin as part of the reserve, provided they meet certain requirements, including security protocols. “Establishing a strategic Bitcoin reserve to bolster the U.S. dollar with a hard digital asset will secure our nation’s position as a global financial leader for decades to come,” Lummis said in a statement.

Federal Reserve Gold Revaluation​

The bill also includes a section on adjustments to gold certificates, calling on the Federal Reserve Banks to revalue gold certificates and capture their fair market price. Under the plan, within six months of the law’s enactment, Federal Reserve Banks will be required to surrender all of their gold certificates to the Secretary of the Treasury, CoinDesk has reported. “Within 90 days of the surrender of the last such certificate, the Secretary shall issue new gold certificates to the Federal Reserve Banks reflecting the fair market price of gold held by the Treasury against such certificates on the date specified by the Secretary in each certificate,” the draft reads, as quoted by The Block.

Thereafter, the Federal Reserve Banks would “remit the difference in cash value between the old and new certificates” to the Secretary of the Treasury. On July 24, the Federal Reserve Banks held gold reserves valued at $11 billion, according to the central bank’s balance sheet. Along with gold, the United States also holds oil reserves.

For After November​

Lummis previously told The Block that the bill will not pass this year but could be considered after the November presidential election. Cryptocurrencies have become a central issue amid the presidential campaign in the U.S. Trump, who began accepting Bitcoin donations in May, has stated his intention to protect the industry and end the “crackdown” that has been pushed by Joe Biden’s administration against the digital asset sector.

Meanwhile, Vice President Kamala Harris’s presidential campaign team has reportedly begun reaching out to ask questions about the cryptocurrency industry. At the time of writing, BTC is trading around $66,100.

 

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U.S. stock markets plunge on economic worries and tech slump
U.S. stock indexes fell sharply on Monday during the European session amid growing concerns about an economic slowdown, with technology stocks mainly being hit.

Fear of economic slowdown hits Wall Street​

The sharp losses in Wall Street futures came after U.S. stock markets in the U.S. had been rattled the previous week on fears of a possible economic slowdown.

A series of poor readings increased concerns that the Federal Reserve had kept interest rates at high levels for quite some time, and that the odds of a soft landing for the economy were slipping.

It seems that this notion came to a head on Friday after July’s nonfarm payrolls data missed estimates by a wide margin, signaling a sizable cooling in the labor market.

Although the data raised hopes of further interest rate cuts by the Federal Reserve, it did dampen appetite for risk-linked assets.

Technology stocks, which benefited greatly from the positive tone at the beginning of the year, have been significantly affected, and the NASDAQ Composite, with a strong technology component, has lost close to 10% from its all-time high at the beginning of the year, entering correction territory.

More economic data​

More economic data will be released on Monday, including the ISM services PMI for July, and San Francisco Fed President Mary Daly will speak at a conference after the close of business on Monday.

Investors will be looking for more signals regarding the strength of the world’s largest economy, after Friday’s jobs report made the sentiments n of fears of a recession.

The volatility index for U.S. stocks, the VIX index, surpassed the 40 level early Monday, reaching its highest level since October 2020, Bloomberg reports.

The index has surged to nearly 79%, the biggest rise on record since February 20018, and has reached its highest intraday level in four years.

Right now, markets are forecasting a near 78% chance that the Fed will not only cut rates by September, but by nearly 50 basis points.

High-profile earnings follow​

Most of the major companies have already reported their results, although some high-profile results are expected in the coming days.

Caterpillar (CAT), the industrial leader, and Uber Technologies (UBER), the ride-sharing company, will release their results on Tuesday.

Super Micro Computer (SMCI), which saw a considerable valuation spike on the back of artificial intelligence hype, will also release its results on Tuesday, while media giants Walt Disney (DIS) and Warner Bros.

Crude oil falls as a result of growth concerns​

Crude oil prices fell on Monday, trading near eight-month lows, due to growing concerns about the economic slowdown in the United States, the world’s largest crude oil consumer.

Weak U.S. economic data in the previous week has hit sentiment in crude oil markets, as estimates of a recession in the world’s largest economy are a bad sentiment for future demand, even as recent inventory data indicated that increased travel demand during the early summer had kept gasoline consumption high.

This comes on top of disappointing growth figures from China, the world’s largest oil importer, and surveys indicating weaker manufacturing activity in Asia and Europe, adding to concerns about oil consumption.

 

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Trump plans to use cryptocurrencies to pay off U.S. debt and be a leader in the sector
Former President Donald Trump recently hinted at the potential usefulness of cryptocurrencies to pay down the $35 trillion U.S. national debt. In an interview on Fox Business and while participating in the Bitcoin2024 Conference, Trump argued that the cryptocurrency sector could play a role in the national financial strategy, although he did not provide specifics on how this proposal would be carried out.

Trump’s changing perspective on cryptocurrencies​

Trump, a Republican candidate for president, stated that the U.S. should take the lead in the cryptocurrency sector, which he called having a “very high intellectual level.” This change represents a marked difference from his previous comments, as he has in the past branded digital assets as “a disaster waiting to happen” and, in May 2018, during his presidency, went so far as to order then-Treasury Secretary Steven Mnuchin to take action against Bitcoin for alleged fraud. At the Bitcoin2024 Conference, Trump made the case that, if re-elected, he would prevent the government from selling seized Bitcoin on the open market. Instead, he would hold the asset strategically as an investment, indicating a more positive view regarding the potential of cryptocurrencies.

Campaign strategy and cryptocurrencies​

Trump’s latest comments also correspond with his efforts to raise funds for his election campaign by positioning himself as a supportive candidate for cryptocurrencies, unlike President Joe Biden. This approach indicates Trump’s recognition of the increasing importance of cryptocurrency in U.S. economic and political debates. Ultimately, Trump’s statements show a nuanced shift in his attitude toward cryptocurrencies, viewing them as a tool for managing the national debt and strengthening his campaign by appealing to cryptocurrency advocates.

Senator Cynthia Lummis has recently proposed a bill to constitute a strategic Bitcoin reserve in the United States to combat the harmful effects of rampant monetary printing and preserve U.S. financial supremacy in global markets and trade.

The Wyoming senator has set a goal of having the U.S. Treasury purchase 5% of the total Bitcoin supply, preserving the scarce decentralized asset for at least 20 years as a bulwark against central bank monetary devaluation and poor fiscal policy.

 

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Market Highlights for the Week: Economy, Markets, Oil
Concerns about the economy continue, especially over fears that the Federal Reserve has kept interest rates high for too long, hurting growth. More high-profile earnings reports are expected, and oil prices look set to remain volatile due to a combination of recession fears and geopolitical risks. Here’s a look at what will happen in the markets this week.

U.S. Data and Fed Speeches​

After Friday’s weak July jobs report, which fueled fears about a possible recession, the economic calendar for this week is notably lighter. On Monday, the Institute for Supply Management will release its service sector index, which is expected to indicate moderate growth.

On Thursday, investors will hear about the state of the labor market with the weekly release of initial jobless claims, which are expected to pull back slightly from their highest level in nearly a year. Investors will also hear from San Francisco Fed President Mary Daly and Richmond Fed President Thomas Barkin, who kept rates unchanged last week but left open the possibility of a rate cut in September.

More Earnings Reports​

While many large companies have already reported their results, a few big names are still to come. Caterpillar (CAT) and Walt Disney (DIS) will shed light on manufacturing and consumer health. Reports from Eli Lilly (LLY) and Super Micro Computer (SMCI), key players in AI, are also expected. U.S. stock markets fell for a second day on Friday, with the Nasdaq Composite slipping into correction territory.

This was driven by concerns over an economic slowdown and fears that the Federal Reserve may have delayed a rate cut too long, compounded by drops in Amazon (AMZN) and Intel (INTC) due to weak quarterly results and outlooks.

China Outlook​

This week, investors will be treated to information on how China’s economic recovery will evolve in the second half of the year through a series of economic data. The week begins with a private sector survey on services activity, to be followed by trade data on Wednesday and a consumer price reading at the end of the week. Recent data point to a gloomy outlook for the world’s second-largest economy, and recent rate cuts have highlighted the urgency of Beijing’s efforts to shore up growth. Policymakers will be closely watching Friday’s inflation figures for clues on how much more needs to be done to boost weak domestic demand.

Reserve Bank of Australia Decision​

The Reserve Bank of Australia is expected to leave interest rates unchanged at its next policy meeting on Tuesday after data last month indicated that core inflation unexpectedly slowed to a two-year low in the second quarter and that economic growth moderated in the first quarter.

Market participants will be looking to future central bank guidance, with a 70% chance of a rate cut later in the year if inflation continues to slow.

Oil Prices​

Oil prices declined on Friday, settling at their lowest level since January, as economic data from the U.S. and China, the largest oil importer, heightened concerns about demand expectations.

The weak U.S. jobs report, coupled with slowing manufacturing activity in China, pressured prices lower on the risk that the sluggish global economic recovery will impact oil consumption. Oil investors are also keeping an eye on the Middle East, where the Iranian-backed Lebanese group Hezbollah said its conflict with Israel had entered a new phase. Meanwhile, last Thursday’s OPEC+ meeting did not change the group’s production policy, which plans to start withdrawing production cuts from October.

 

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Dollar Falls on Recession Fears; Yen and Swiss Franc Gain
The U.S. dollar fell sharply on concerns about U.S. economic growth, while the Swiss franc and Japanese yen saw strong safe-haven demand.

Dollar Loses Ground on Recession Fears​

The dollar’s sell-off came after data released on Friday showed a significant cooling in U.S. job creation in July, and U.S. Treasury yields fell as traders began to consider the likelihood of a hard landing for the U.S. economy due to the prolonged period of high interest rates.

Traders now expect the Federal Reserve to cut interest rates in September, and anticipate larger cuts than the previously expected 50 basis points at the September and November Federal Open Market Committee meetings.

Wells Fargo now estimates two 50 basis point rate cuts at the Federal Open Market Committee meetings in September and November.

This forecast marks a considerable change from past predictions due to emerging economic indicators, with recent data raising concerns about the economy.

Swiss Franc in Demand as Carry Trades Unwind​

In Europe, the Swiss franc soared as traders sought safety in this turbulent environment.

The Swiss franc hit a seven-month high against the dollar, with USD/CHF losing nearly 1.4% to 0.8458.

The Swiss currency also benefited from the unwinding of carry trades, in which investors borrow money from low-interest-rate economies such as Japan or Switzerland to finance investments in higher-yielding assets elsewhere, a strategy that has gained popularity recently.

The EUR/USD rose nearly 0.6% to 1.0974 due to the dollar’s general weakness.

Expectations of further cuts by the European Central Bank have also increased, although very few traders have been long on the euro since the start of the political turmoil in France at the end of June.

Weaker global growth is not good for the pro-cyclical euro, although the fact that the narrative of U.S. exceptionalism could come back to earth with a bump should support EUR/USD, given that the Fed is poised to cut rates sharply.

GBP/USD lost 0.4% to 1.2752 on fears that the Bank of England will also delay, as the UK central bank did not cut interest rates until the previous week.

Moreover, the decision to cut rates by a quarter point to 5% was split among policymakers (5-4), indicating that the central bank may remain cautious going forward.

Yen Hits Seven-Month High​

USD/JPY sank 3.2% in Asia to 141.86, and the yen hit a seven-month high against the dollar as traders unwound their carry trades in anticipation of major rate cuts by the Federal Reserve.

The rise in the yen, which hit a 38-year low against the dollar in July, was also helped by the Bank of Japan’s 15 basis point rate hike last week.

The USD/CNY was down 0.6% to 7.1167, and the yuan rallied due to a weaker dollar, despite uncertainty about the economic slowdown in China.

 

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Dollar Rebounds After Sharp Losses, Euro and Pound Lose Ground
The U.S. dollar gained ground on Tuesday, reversing some of its recent losses as some calm returned to currency markets.

Dollar Recovers After Heavy Losses​

In recent weeks, the dollar has been significantly affected by fears of a possible U.S. recession after a series of weak labor market data, which has triggered bets that the Federal Reserve will cut rates more than initially expected.

Right now, traders are estimating 110 basis points of easing in 2024 by the Fed, with about an 80% chance of a 50 basis point cut in September, after fully discounting a 50 basis point cut on Monday.

Fed policymakers on Monday pushed back against the notion that the weaker-than-expected July jobs data means the economy is in a recessionary free fall, but also noted that the Fed will have to cut rates if it wants to avoid such an outcome.

Austan Goolsbee, president of the Chicago Fed, said, “The employment numbers are weaker than expected, but they still don’t look like a recession. I think in making decisions you have to take into account where the economy is headed.”

Both the Euro and the Pound Lose Ground​

Turning to Europe, the dollar gained ground against the euro and sterling as the European Central Bank and the Bank of England have begun interest rate cuts aimed at stimulating their respective economies.

The EUR/USD lost about 0.4% to 1.0911, after touching a seven-month high of 1.100 on Monday, following news that retail sales fell by 0.3% in June in the eurozone, indicating that consumers are likely to remain cautious.

On the other hand, German industrial orders rose more than forecast in June, by 3.0% compared to the previous month, indicating a glimmer of hope for the European continent’s largest economy.

The GBP/USD lost about 0.5% to 1.2706, giving back some of its recent gains in the wake of the dollar’s strengthening.

The Bank of England cut interest rates last week, reducing the benchmark rate by a quarter point to 5%.

Yen Falls for First Time in August​

USD/JPY rose about 0.2% to 144.47, and the yen weakened for the first time in August, consolidating after volatile moves in recent days.

The yen had benefited from increased safe-haven demand in the face of the broader financial market slump. Bullish signals from the Bank of Japan, which raised interest rates and hinted at further hikes, also boosted the currency, as did the unwinding of carry trades.

USD/CNY rose 0.3% to 7.1504, with the yuan losing strength in anticipation of this week’s trade and inflation data.

AUD/USD was down 0.2% to 0.6480, with the Australian dollar retreating following comments from Reserve Bank of Australia Governor Michele Bullock that rate cuts are further away.

The Australian central bank left interest rates unchanged on Tuesday, as expected, while reiterating that it was not ruling out any measures to control inflation.

 

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U.S. Stock Markets Rise, with Strong Earnings Supporting Sentiment Shift
U.S. stock markets rose on Tuesday, showing signs of recovery from Monday’s decline, despite continuing concerns about an economic slowdown.

Recession Fears Lead to Heavy Losses​

Concerns about a significant slowdown in economic growth, following a string of poor data related to the purchasing managers’ index and the labor market, caused the DJIA, S&P 500, and Nasdaq to lose nearly 5%, 6%, and 8% respectively in three days, marking their worst three-day performance in more than two years.

Weak economic data fueled fears that the Fed would keep interest rates higher for longer and that any cut by the central bank right now would not be enough for the economy to achieve a soft landing.

That said, markets increased their estimates for a 50 basis point cut in September and were looking at at least 100 basis points in rate cuts this year, according to CME FedWatch.

2Q Earnings Follow​

Caterpillar (CAT) stocks rose 1% after the industry giant unveiled a slight quarterly profit increase, supported by resilient demand for its larger excavators and other construction equipment amid rising U.S. infrastructure spending.

Shares of Uber Technologies (UBER) rose more than 5% as the ride-hailing company beat estimates for both second-quarter revenue and core earnings on continued demand for its ride-sharing and food delivery services.

Super Micro Computer (SMCI) will also release its results after the bell, and is set to provide more clues about demand from the artificial intelligence industry.

Additionally, Palantir Technologies (PLTR) rose nearly 11% after the software services provider raised its annual revenue and profit forecast for the second time in 2024, while Lucid Group (LCID) rebounded more than 9% due to better-than-estimated second-quarter revenue and after the electric vehicle maker unveiled that its largest shareholder, Saudi Arabia’s Public Investment Fund (PIF), will invest about $1.5 billion in cash.

Media giants such as Walt Disney (DIS) and Warner Bros. Discovery (WBD) will release their results on Wednesday.

Oil Prices Continue to Fall​

Crude oil prices declined on Tuesday, continuing to fall in a volatile market after hitting eight-month lows on concerns about global demand.

Concerns about a possible escalation of the war between Israel and Hamas, especially after Iran vowed to retaliate for the assassination of a Hamas leader in Tehran, have supported oil markets.

However, confidence remains fragile due to fears that slowing economic growth will dampen demand, especially after disappointing U.S. labor market data raised concerns about a potential U.S. recession.

 

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Dollar rises, yen falls after Bank of Japan rules out another rate hike
The U.S. dollar rose on Wednesday, while Japan’s yen sank after the Bank of Japan tried to calm the turbulent waters by signaling that it will not raise rates further if markets remain highly volatile.

Dollar recovers ground after sharp losses​

The dollar gained some ground on Wednesday, helped in part by the yen’s weakness and amid bets that U.S. economic growth will not deteriorate as sharply as markets expect.

The dollar was hit hard by fears of a U.S. economic recession after a series of weak labor market data, which increased bets that the Fed will have to cut rates more than initially expected.

However, market traders have also adjusted their estimates of Fed cuts as the week has moved on, with markets now estimating a 70% chance that the Fed will cut rates by 50 basis points by September, according to CME’s FedWatch tool, compared to 85% the day before.

Similarly, there are analysts who point out that the market trend is considerably higher than it was a week ago, but they suggest that no serious market disruptions have been generated so far that would lead policymakers to intervene.

Euro and sterling in tight spaces.​

EUR/USD lost 0.1% to 1.0918, retreating further from Monday’s seven-month high of 1.1009 on the back of the rising dollar

Meanwhile, GBP/USD rose 0.2% to 1.2708, not far from the five-week low it hit last session.

Data released on Wednesday indicated that the U.K. economy grew more than expected in 2022.

The Office for National Statistics said Wednesday that it now believes the U.K. economy grew by 4.8% in 2022, up from an earlier estimate of 4.3%.

Yen plunges sharply after rate hike option is downplayed​

In Asia, USD/JPY rose 2.2% to 147.47, with the yen sinking sharply after Bank of Japan officials downplayed the importance of rate hike estimates.

BOJ Deputy Governor Shinichi Uchida noted that the bank will not raise interest rates when markets behave unsteadily, comments generated by volatile movements in Japan’s currency.

All in all, the yen remained well above the 38-year low reached this 2024, and is likely to receive further support as Japan’s economy improves helped by wage growth.

USD/CNY rose 0.4% to 7.1862, and the yuan barely flattened its losses after mixed trade data.

China’s trade balance contracted more than previously thought in July, weighed down by poor exports after the European Unipon imposed heavy tariffs on imports of Chinese-made electric vehicles in early July.

Although Chinese imports beat estimates, fueling some bets on a recovery in local demand.

The focus right now will be on inflation data due out this week.

 

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U.S. Stock Markets Rise, Super Micro Computer Falls
U.S. stock indexes rose on Wednesday, following Wall Street’s recent rally, although sentiment remains fragile.

Wall Street indexes rose on Tuesday, showing signs of improvement and recovering some of the heavy losses registered the previous week amid concerns about a possible U.S. recession and a slowdown in the technology sector.

The S&P 500 along with the NASDAQ Composite, rose 1%, rebounding from three-month lows, while the Dow Jones Industrial Average was up about 0.8%.

The futures were boosted by comments from a senior Bank of Japan official who downplayed the bank’s plans to raise interest rates, in an environment where markets remain volatile.

Highly stressed market environment​

Confidence in risk assets remains fragile amid persistent concerns about slowing growth and lackluster earnings.

Goldman Sachs indicated that its Financial Stress Index (FSI) has tightened considerably in recent days, although it remains within normal historical levels.

According to a note by Goldman economists, most of the tightening is due to increased volatility in equity and fixed income markets, while short-term financial market conditions appear to be generally stable.

The economists also noted that market tightness is more noticeable today than a week ago, but for now, according to their FSI, there is no need for policymaker intervention.

Walt Disney Results​

There are more earnings to digest Wednesday, including entertainment giant Walt Disney (DIS), CVS Health (CVS), and Shopify (SHOP).

Super Micro Computer (SMCI) likewise will be in the spotlight, due, as shares of the data center operator plunged in pre-market trading in the wake of its June earnings missing estimates, raising concerns about the demand generated by the artificial intelligence industry.

Airbnb (ABNB) also fell sharply after the home-rental company provided third-quarter revenue estimates and signaled shorter booking windows, indicating that travelers were waiting until the last minute to book in the wake of economic uncertainty.

The resilience of S&P 500 earnings remains unchanged despite growing recession fears and recent negative price action, Citi strategists said in a note Wednesday.

The bank’s Citi Economic Data Change Index, which summarizes U.S. macroeconomic data holdings, points to further deterioration in the U.S. economy.

Interestingly, though, despite economic data showing weakness in 2022, S&P 500 earnings growth was unchanged rather than significantly negative, as earnings recessions in certain sectors mitigated the impact at the overall index level.

Strategists remain confident in their forecast of $250 per share for the S&P 500 this year, which is slightly higher than the current bottom-up consensus of about $243.

 

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Nasdaq Applies to the SEC for Permission to Trade Options Linked to Ethereum ETFs
Nasdaq, the exchange for trading financial assets and stocks, made a request to U.S. regulators to allow it to trade options linked to the spot Ethereum ETFs that recently entered the market.

Ethereum ETF options trading​

The request came in a form filed on [specific date] with the Securities and Exchange Commission (SEC), in which Nasdaq proposed to the agency to allow trading of derivatives of the iShares Ethereum Trust, a spot Ethereum ETF managed by BlackRock and better known as ETHA, whose shares are traded on the Nasdaq platform. It should be noted that Nasdaq also made a similar request some time ago regarding spot Bitcoin ETFs.

However, the SEC informed the platform and other interested parties that these products were not authorized for the time being because more time was needed to properly study the case. Options trading would become a natural step in the stock market, as they allow for new products and modalities related to the asset they are associated with.

According to Cointelegraph, hedge funds and financial advisors can turn to these alternatives to protect themselves from abrupt market movements, such as the widespread drop that affected Bitcoin, Ethereum, and other cryptocurrencies since August 4. According to analysts consulted by Cointelegraph, allowing the trading of options associated with Ethereum ETFs would open up a much larger market to these products, attracting larger amounts of capital and helping to popularize them among interested investors.

Ethereum ETFs and their market debut​

After months of uncertainty and waiting, Ethereum ETFs finally officially hit the market on July 23. Although they have seen more outflows than inflows in the 11 days of trading on the U.S. exchange, the large capital flows highlight investor interest in the new product.

According to data published by Farside Investors, to date, Ethereum ETFs have posted a balance of $473.9 million in outflows, a figure driven primarily by sales by Grayscale’s ETHE, which alone racked up more than $2.203 billion in sales. However, in contrast to the negative results of one of Grayscale’s funds, we find the performance of products from BlackRock, Fidelity, Bitwise, and Grayscale’s other fund, which accumulated positive balances of $759.9 million, $335.8 million, $295.1 million, and $213.1 million, respectively.

Finally, as for Ethereum, the digital currency is trading at the time of writing at around $2,500 per unit, a value that represents an increase of 2.5% in the last 24 hours.

 

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Dollar Rises Ahead of CPI
The U.S. dollar rose on Monday during a light trading day as traders awaited the release of key inflation data later in the week, seeking clues about the Federal Reserve’s upcoming policy decisions.

Dollar gains on CPI expectations​

The dollar received support at the end of the previous week after better-than-expected U.S. jobs data led traders to trim their bets on interest rate cuts by the Federal Reserve in 2024.

Earlier in the week, the U.S. currency was reported to have weakened due to concerns about the U.S. economy, coupled with the Bank of Japan’s hawkish stance.

Fed funds futures imply a 49% chance of a half-point rate cut in September, down from 100% the previous week.

This backdrop of uncertainty makes markets highly vulnerable to data and events, most notably the U.S. consumer price index on Wednesday.

July CPI data is expected to show that inflation continues to approach the Fed’s 2% annual target, with forecasts indicating that annual core inflation will dip to 3.2%, the lowest level since April 2021.

Sterling Awaits Inflation Data​

EUR/USD rose to 1.0920, close to the high of 1.1009 reached last week, marking the pair’s highest level since January 2 of this year.

In Europe, the pair is showing signs of a quiet start to the week, with a sparse European economic data calendar and few European Central Bank speeches on the agenda.

This has led the market to focus on the first revision of the Eurozone’s GDP data for the second quarter.

The European Central Bank began cutting interest rates in June, and many expect policymakers to agree on another rate cut scheduled for September.

GBP/USD traded flat at 1.2759 at the start of a week full of U.K. economic data, as investors look for signs that the Bank of England will continue its rate-cutting cycle next month.

The BoE cut rates for the first time since 2020 earlier this month, and markets are currently pricing in a 33% chance of another quarter-point cut at its September meeting.

Data on wage growth will be released on Tuesday, followed a day later by inflation figures, which will be closely scrutinized for signs of ongoing price pressures.

Yen plunges​

In Asia, USD/JPY rose nearly 0.4% to 147.25, retreating further after a large-scale rally in the previous month.

Economic data and central bank meetings in Asia kept investors on edge, while a public holiday in Japan limited volumes.

USD/CNY rose 0.2% to 7.1811, while the yuan retreated sluggishly.

Although large losses have been stemmed by continued support from the People’s Bank, skepticism about the Asian giant’s economy has kept traders mostly short on the currency.

This week, the focus is on China’s industrial production and retail sales data to gain more insight into the country’s primary economic drivers.

 

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U.S. Stocks Rise, Inflation Data Trends Upward
U.S. stock indexes traded quietly on Monday, appearing stable after the wild swings of the previous week, with attention focused on key inflation data due later this week.

More CPI data to come​

This week, attention will focus on the consumer price index inflation data, due on Wednesday, for more signals regarding the economy and inflation cooling.

The reading is expected to have cooled slightly in July compared to last month, a trend likely to increase optimism about lower interest rates.

According to CME FedWatch, investors are torn between a 25 or 50 basis point cut by September. The Fed is widely expected to begin cutting rates then, amid growing signs of a cooling U.S. economy.

The Fed recently indicated that any further encouraging economic data will set the stage for a rate cut in September and that it would not need to see inflation reach its 2% annual target to begin cutting rates.

Wall Street shows signs of recovering from the previous week’s losses​

Wall Street indexes closed Friday with slight gains, ending the week flat.

The decline in technology stocks, coupled with fears of an economic recession in the United States, caused stock market indexes to start the previous week with considerable losses, with the Nasdaq entering correction territory from its recent highs.

However, bargain-buying in technology stocks, coupled with the belief that U.S. economic recession fears may be exaggerated, helped Wall Street recover most of its losses.

In addition to Wednesday’s inflation data, there will also be some earnings releases this week, even though the earnings season is mostly over.

Home Depot (HD) and Cisco Systems (CSCO) will release their results later in the week.

Crude oil rises again​

Crude oil prices rose for a fifth consecutive session on Monday as concerns about the U.S. economy eased, while geopolitical tensions in the Middle East remained elevated.

Iran and Hezbollah have vowed to respond to the assassinations of Hamas leader Ismail Haniyeh and Hezbollah military commander Fuad Shukr.

Axios reported on Sunday that Israeli intelligence believes Iran will attack Israel directly within days.

 

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Market Highlights for the Week: Inflation, Volatility, UK
Investors will be watching key inflation data set to be released next Wednesday for clues about the potential magnitude of an expected rate cut by the Federal Reserve in September. Markets are likely to remain volatile, and retail sales results will be monitored for signs of strength in consumer spending. Here’s a look at what’s expected in the markets this week.

CPI Data​

July consumer price index (CPI) data is expected to indicate that inflation continues to move closer to the Fed’s 2% annual target. A report reflecting only a slight cooling could ease fears that the Fed has pushed the economy into a crisis by keeping rates elevated for too long. However, a negative report could reignite recession fears and trigger market volatility once again. The economic calendar also includes July retail sales figures, as well as the weekly report on initial jobless claims.

Investors will also have a chance to hear from several Fed officials, including Atlanta Fed President Raphael Bostic, Philadelphia Fed President Patrick Harker, and Chicago Fed President Austan Goolsbee. Comments from these Fed officials last Thursday suggested they are increasingly confident that inflation is moderating enough to warrant rate cuts.

Market volatility​

Investors are likely to remain nervous this week after last Monday’s stock market plunge, triggered by a combination of fears of a U.S. recession and the unwinding of yen-funded global trades. On Thursday, a larger-than-expected decline in jobless claims showed that fears about the health of the labor market were overblown, helping markets recover most of their losses by Friday’s close. In the week ahead, attention will focus on whether the Fed’s assessment of expected rate cuts is supported by upcoming economic data and how much of the yen-financed selloff will persist.

Concerns about the possible escalation of conflict in the Middle East and the impending U.S. elections also suggest that volatility will not subside anytime soon.

Corporate results​

Earnings season is in its final phase, and most companies have already reported their quarterly financial results. But there are a few notable names left to report next week, such as retailers Home Depot (HD) and Walmart (WMT).

Traders will be watching to see what retailers say about the resilience of consumer spending, a key driver of economic growth, especially given recent signs of weakness in economic data. Other big names on the earnings agenda include Cisco Systems (CSCO) and Fox Corporation (FOX).

Oil prices​

Oil prices rose last week, supported by comments from Federal Reserve policymakers indicating that they may cut interest rates in September, which eased concerns about demand. Meanwhile, the risk of an escalation of conflict in the Middle East continues to heighten supply risks. Brent gained more than 3.5% for the week, while U.S. crude futures rose more than 4%.

Fears of a possible recession have subsided, bolstering demand expectations. Simultaneously, geopolitical tensions in the Middle East have fueled fears of a potential conflict that could disrupt production in the region and dent global crude supplies.

The possibility of retaliatory attacks by Iran against Israel heightens concerns about oil supplies in the world’s largest oil-producing region.

UK data​

The U.K. will release a series of economic data that will influence monetary policy forecasts for the coming months. Wage growth data will be released on Tuesday, followed a day later by inflation figures, which will be closely watched for signs of persistent price pressures, particularly in the still-booming services sector. Thursday’s monthly GDP data is expected to show near-zero growth in June, but the economy is estimated to have grown by 0.6% in the second quarter.

Meanwhile, Friday’s retail sales data is expected to rebound in July after last month’s drop. The Bank of England cut rates for the first time since 2020 earlier this month, and markets are currently estimating a 33% chance of another quarter-point cut at its September meeting.

 

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Tether Prepares for the Future: 200 Employees by 2025
The aim of this strategic expansion is to strengthen key sectors such as compliance and finance.

From Tether’s headquarters in Hong Kong, the creator of the largest stablecoin on the market has announced its ambitious plans to double its workforce in the coming months.

Strategic Growth in Turbulent Times​

In an exclusive interview with Bloomberg News, Paolo Ardoino, CEO of Tether Holdings Ltd., revealed that the company plans to reach a workforce of around 200 people by mid-2025. This substantial increase in headcount will primarily aim to strengthen two critical areas: compliance and finance.

Tether’s decision to expand its team comes at a crucial period for the cryptocurrency industry. As the market becomes increasingly regulated and monitored, the company aims to consolidate its leadership in the stablecoin sector while ensuring the integrity and security of its operations.

Ardoino stressed the importance of preserving the company’s responsiveness over time, despite the planned growth. “We are very proud of the fact that we are very agile, and we want to remain so because we want to stay flexible,” said the CEO. “We are very careful when it comes to hiring people, we only hire senior staff.”

The Giant Behind USDT​

Tether has transformed itself into a financial powerhouse in the cryptocurrency world, generating an impressive $1.3 billion in profits in the second quarter of this year. Today, the company manages assets worth close to $118 billion that serve as backing for the stablecoin USDT, whose market capitalization is close to $115 billion.

This exponential growth contrasts with the small size of its current team. While other industry giants, such as Binance and Coinbase, have thousands of employees, Tether has maintained a lean and efficient structure.

However, monitoring potential illegal activity in the USDT secondary market requires increasingly automated and sophisticated tools. Ardoino emphasized that this is one of the main objectives of the planned expansion.

Challenges and Opportunities on the Horizon​

Tether’s statement comes against a backdrop of increasing scrutiny from regulators and the media. A recent Wall Street Journal report explained how USDT has been used by Russian arms smugglers to evade U.S. sanctions, prompting Tether to intensify its efforts to cooperate with global authorities.

The company announced in May a strategic partnership with Chainalysis Inc. to ” methodically monitor transactions” with functions including sanctions identification. This collaboration reinforces Tether’ s commitment to maintaining the integrity of its stablecoin and preventing its use in criminal activities.

Investments and Long-Term Outlook​

In addition to its core business, Tether has diversified its operations, making significant investments in cryptocurrency startups. Over the past two years, the company has invested around $2 billion in companies such as Northern Data Group and Bitdeer Technologies Group, a publicly traded cryptocurrency miner.

The investments are overseen by a team of just 15 people, attesting to Tether’s operational efficiency. However, Ardoino was wary of an overly aggressive workforce expansion.

“There’s nothing I hate more than companies, especially Silicon Valley companies, that hire hundreds of people during bull markets and then lay them off as soon as there’s a market downturn,” the CEO commented.

The Future of Tether and Stablecoins​

Tether’s planned expansion could have significant implications for the future of stablecoins and the cryptocurrency ecosystem in general. By consolidating its capabilities in regulatory compliance and financial management, the company seeks not only to maintain its leadership position but also to set new standards for the industry.

Tether ‘s growth can also serve as an indicator of the overall state of the cryptocurrency market. At a time when many companies in the sector have had to downsize due to market volatility, Tether’ s expansion suggests continued confidence in the future of digital assets.

However, this growth also brings new challenges. Tether will need to carefully balance its expansion with the need to maintain the agility and flexibility key to its success to date.