Welcome to the Artificial Intelligence Outlook for Forex trading. https://www.youtube.com/watch?v=PergQPnXd2o VIDEO TRANSCRIPT Okay, hello everyone, welcome back. My name is Greg Firman, and this is the Vantage Point AI Market ...
According to Odaily, Bank of America has revised its monetary policy outlook following weaker-than-expected data, including the ISM Manufacturing Report and the July non-farm payroll report. The bank now anticipates that the Federal Reserve will implement a 25 basis point rate cut at its September meeting. This adjustment reflects a broader expectation of gradual monetary easing by the Fed.In addition to this forecast, Bank of America has also lowered its expectations for the terminal rate of the upcoming normalization cycle. The bank now projects the terminal rate to be between 3.25% and 3.5%, a reduction of 25 basis points from previous estimates. This adjustment is based on the assumption that the economy may cool faster than anticipated by both the bank and the Federal Reserve, potentially reducing the need for a prolonged high-interest-rate policy stance.
According to Foresight News, several White House officials and cryptocurrency industry executives are set to participate in a roundtable discussion on digital asset policy. The event is organized by Representative Ro Khanna and will include notable attendees such as National Economic Council Director Lael Brainard, White House Deputy Chief of Staff Bruce Reed, and outgoing Senior Advisor Anita Dunn.
According to PANews, the High Court of Odisha in India has reiterated that cryptocurrency trading is neither prohibited nor considered illegal in the country. The court granted bail to Yes World CEO Sandeep Chowdhury, citing the absence of an official ban or illegal status for cryptocurrency transactions in India. Chowdhury had been detained on allegations of defrauding investors through a Ponzi scheme or multi-level marketing plan disguised as a cryptocurrency business.Despite the lack of specific cryptocurrency regulations in India, the government imposes heavy taxes on cryptocurrency transactions. Gains from virtual digital assets (VDAs) are subject to a 30% tax, and users cannot offset gains with losses as they can with stocks. Additionally, a 1% tax deducted at source (TDS) on digital asset transactions further impacts traders.
According to PANews, the Royal Bank of Canada has reported an unexpected downturn in the U.S. labor market at the start of the third quarter. July's non-farm payroll data indicated a significant slowdown in labor market conditions, which have been gradually deteriorating over the past year. The unemployment rate rose from 3.4% in April 2023 to 3.9% in April, and then increased to 4.3% over the next three months.During this week's Federal Reserve meeting press conference, Fed Chairman Jerome Powell continued to describe the current labor market weakness as a normalization from overheated conditions. He emphasized that if the labor market weakens unexpectedly, the Federal Reserve is prepared to respond accordingly. The Royal Bank of Canada still expects the Federal Reserve to cut interest rates at its next meeting in September and believes the risk of further rate cuts for the remainder of the year leans towards more rather than fewer.
According to PANews, the U.S. Commodity Futures Trading Commission (CFTC) is investigating potential cryptocurrency fraud involving 15 different tokens, including the memecoin BEN. The investigation targets unknown individuals who may be involved in fraudulent activities. On July 16, the CFTC issued a subpoena to Hit Network, a media company focused on cryptocurrency, which had previously hired Ben 'BitBoy' Armstrong as a spokesperson. The subpoena requests information on the trading activities and digital wallets related to these 15 tokens, including BEN, which is associated with Armstrong.Armstrong, known for his YouTube channel, has recommended 14 other tokens in his videos, primarily before Hit Network was established. These tokens were suggested as potential investment opportunities. The CFTC's investigation aims to uncover any fraudulent activities linked to these recommendations and the associated digital wallets.
According to Odaily, Elvira Nabiullina, the Governor of the Central Bank of Russia, has stated that the regulatory body anticipates the widespread adoption of the digital ruble, Russia's central bank digital currency (CBDC), within the next five to seven years. Nabiullina emphasized that by 2031, the digital ruble is expected to become a familiar aspect of daily life. She highlighted the benefits of the digital ruble, such as free personal transfers and lower transaction fees for businesses, as key factors that will drive its adoption.
According to Odaily, the Bank for International Settlements (BIS) and the Bank of England have unveiled the results of their 'Pyxtrial Project,' which aims to monitor the reserves of asset-backed stablecoins and tokenized assets. Described as a proof-of-concept project, Pyxtrial is considered an 'important first step.' However, the system is not yet fully ready for deployment. The creators of the project have noted that the global regulatory framework, which the system will help enforce, is still largely under development.
According to BlockBeats, the collapse of Terra's LUNA and UST in mid-2022 resulted in a $40 billion loss for global investors. Terraform Labs and its founder, Do Kwon, reached a civil settlement with the U.S. Securities and Exchange Commission (SEC) in June, agreeing to pay fines of $4.47 billion and $200 million, respectively. However, the timeline for compensating affected investors remains unclear.On the 26th, the SEC released a notice addressing compensation for investors and creditors affected by Terraform Labs. The SEC clarified that compensation would be handled through the ongoing bankruptcy case of Terraform Labs. The company filed for Chapter 11 bankruptcy protection in Delaware in January, with estimated assets and liabilities between $100 million and $500 million, and 100 to 199 creditors.The SEC explained that Terraform Labs would seek approval for a Chapter 11 liquidation plan, which would establish a liquidation trust or property representative to distribute the remaining assets to creditors and investors harmed by Terraform's crypto asset securities, such as LUNA. The court's final judgment ordered Terraform to pay $4.47 billion in illicit gains, pre-judgment interest, and civil penalties. Do Kwon is required to transfer at least $204 million to Terraform's bankruptcy estate, including $7 million in cash and all crypto assets of the Luna Foundation Guard.The SEC emphasized that it would not receive any payments until investors and creditors are fully compensated. The bankruptcy plan, expected to be finalized in the fall of 2024, will outline the rights of creditors and affected investors. They will have the opportunity to review and vote on the disclosure statement and liquidation plan. The bankruptcy court has yet to determine the procedures and deadlines for submitting fraud-related loss claims against Terraform, but information will be posted on the following website once the plan is approved: https://dm.epiq11.com/case/terraform/info.As for LUNA's market performance, the token has seen a significant decline. After reaching $0.83 at the end of May, LUNA's price has dropped to $0.385, a nearly 70% decrease from its yearly high of $1.26.
However, leverage is a double-edged sword. While it can magnify gains, it also increases the potential for substantial losses, making it perilous when the market turns unfavorably.