The pension fund for firefighters in Houston has allocated part of its $4 billion portfolio towards crypto.
According to a Thursday Bloomberg report, the Houston Firefighters’ Relief and Retirement Fund used the New York Digital Investment Group, or NYDIG, to execute the purchase of $25 million in Bitcoin (BTC) and Ether (ETH). Public records through the Texas comptroller’s office show the pension fund held more than $4.1 billion in total net assets as of June 2020, meaning the group has allocated roughly 0.6% of its portfolio towards digital assets.
“We have been studying this as an asset class to add to our investment portfolio for quite some time,” said the fund’s chief investment officer Ajit Singh. “It became an asset class we could not ignore anymore.”
“As more and more institutional adoptions happen, there will be more and more dynamics that develop for supply and demand. And having physical assets — actual tokens — gives us in the future the possibility of income generation potential.”
The fund is responsible for the benefits of more than 6,600 active and retired firefighters as well as surviving family members. According to the group, more than half of the fund is invested in common and private equity but also includes domestic stocks, international stocks, bonds, cash and real estate.
The sterling retreats from 158.20 to test levels below 157.00.
The yen appreciates on risk aversion.
GBP/USD: Heading towards 163.91 while above 156.60 – Credit Suisse.
The British pound has given away all the ground taken over the last two days, against a stronger JPY, favored by a deteriorated market sentiment. The pair has pulled back from multi-year highs at 158.20 to test prices right below 157.00
The yen appreciates on risk aversion
The risk-sensitive sterling remains sold on Thursday, with the yen building up as the investors run to safe assets. With US corporate earnings failing to extend the positive mood witnessed on previous days, concerns about supply chain disruptions and the timing of the Fed’s monetary policy normalization have returned to the limelight.
US stock markets are trading mixed on Thursday. The Dow Jones and the S&P 500 indexes are 0.4% and 0.36% down respectively while the Nasdaq Index appreciates 0.38%. Disappointing quarterly earnings from the technological firm IBM have dampened sentiment and fuelling demand for the safe-haven yen.
On the macroeconomic docket, in absence of key releases in the UK and Japan, better than expected US weekly jobless claims and the strong US home sales figures have been offset by the downbeat Philadelphia Fed Manufacturing Survey, which has reactivated concerns about the economic impact of supply bottlenecks.
GBP/JPY: Heading to 163.91 while above 156.60 – Credit Suisse
From a technical perspective, the FX Analysis team at Credit Suisse maintains their positive bias while support at 156.60 holds: “With a major base already established in February 2021, we look for a move to next resistance at 159.80, then 163.91 (…) The broken 156.62/06 highs should now floor the market over the medium-term.”
There was a flurry of positive news on vaccine boosters Thursday, as the Centers for Disease Control and Prevention gathered to discuss which patient groups should be eligible for boosters developed by Moderna and Johnson & Johnson.
The meeting follows a decision Wednesday by the Food and Drug Administration to allow those boosters, marking a big step toward expanding the booster campaign, which started with extra doses of the vaccine developed by Pfizer
and German partner BioNTech
last month. The CDC will now consult an expert panel Thursday before finalizing official recommendations as to who should get boosters and when, as the Associated Press reported.
The FDA also gave the go-ahead for Americans to get a booster shot of a vaccine that is not the one they received initially. That will formally allow “mixing and matching” of shots — making it simpler to get another dose, especially for people who had a side effect from one brand but still want the proven protection of vaccination.
Specifically, the FDA authorized a third Moderna shot for seniors and others at high risk from COVID-19 because of their health problems, jobs or living conditions — six months after their last shot. One big change: Moderna’s
booster will be half the dose that’s used for the first two shots, based on company data showing that was plenty to rev up immunity.
Don’t miss: People who got J&J’s COVID-19 shot will soon be able to get a booster. Which one should they get?
single-shot vaccine, the FDA said all U.S. recipients, no matter their age, could get a second dose at least two months following their initial vaccination.
Pfizer and BioNTech, meanwhile, said early Thursday that a late-stage trial of a 30-milligram booster dose of their COVID-19 vaccine showed efficacy of 95.6% compared with those who received a placebo.
The Phase 3 trial involved more than 10,000 people aged 16 and older who had already received the primary two-dose series and found the booster restored vaccine protection against COVID to the high levels achieved after the second dose. The booster was found to be safe.
Also: Some 65,000 more men than women died of COVID-19 in the U.S. through August, and Black men are at higher risk than others, study finds
“These important data add to the body of evidence suggesting that a booster dose of our vaccine can help protect a broad population of people from this virus and its variants,” said Uğur Şahin, co-founder and CEO of BioNTech, in a joint statement with Pfizer CEO Albert Bourla.
The companies are planning to submit the data to the Food and Drug Administration, the European Medicines Agency and other regulators around the world.
The news comes as the U.S. continues to see more than 1,500 deaths a day from COVID, according to a New York Times tracker, although cases and hospitalization are declining. New cases have roughly halved since the start of September to an average of about 76,496 a day.
But as most cases, hospitalizations and deaths are in unvaccinated people, experts continue to urge that group to get their shots and avoid dying a preventable death.
The CDC’s vaccine tracker is still showing 189.7 million people living in the U.S. are fully vaccinated, equal to about 57% of the overall population and below the 70% needed to stop the spread.
Elsewhere, India has cause to celebrate after administering 1 billion COVID vaccine doses as its program gets back on track after a rocky start, the New York Times reported. But the nation of about 1.4 billion people still has work to do, with only about 30% of the 900 million eligible for vaccination receiving two doses.
Read: U.K. faces calls for ‘Plan B’ with coronavirus cases high and rising
Lithuania news portals have switched off public comments on their articles about COVID vaccines in an effort aimed at curbing conspiracy theories, AFP reported. Some 71% of adults in the eurozone country of 2.8 million people are fully vaccinated against the illness, which is a far higher rate than many of its neighbors in Central and Eastern Europe. But infection rates have surged in recent days.
Bulgaria, which has the lowest vaccination rate in Europe at just 25%, is facing protests after the government started to require residents to show proof of vaccination to eat at a restaurant, go to a movie theater or enter shopping malls, the Times reported.
Read: Debate over mandatory COVID-19 vaccines shifts to religious exemptions — and what constitutes ‘sincerely held beliefs’
China is seeing a fresh outbreak of locally transmitted COVID cases in a handful of cities, and local governments are doubling down on efforts to track carriers amid the country’s zero-tolerance policy, Reuters reported. Most of the new cases are in northern and northwestern China.
Singapore suffered a record of 18 deaths from the virus on Wednesday, CNN reported, and has extended restrictions for another month. In a news release Thursday, Singapore’s health ministry said current measures would be extended to Nov. 21, to help contain case numbers, which rose by more than 3,800 on Wednesday.
Central bankers are in a precarious spot in this chaotic pandemic economy. U.S. and U.K. consumers are grousing about rising prices and want some relief. But if government officials give it to them by raising interest rates, they may set back the recovery. It wouldn’t be the first time an errant move by a central bank triggered a recession.
Join Cointelegraph host and analyst Benton Yaun alongside resident market experts Jordan Finneseth and Marcel Pechman as they break down the latest news in the markets this week. Here’s what to expect in this week’s markets news breakdown:
Then, special guest Big Cheds shares some technical analysis on trending charts, the factors he looks at when making trades and altcoins to keep an eye on.
Using insights from Cointelegraph Markets Pro, a platform for crypto traders who want to stay one step ahead of the market, the Cointelegraph experts identify two altcoins that stood out this week: Elrond eGold (EGLD) and Ampleforth’s AMPL token.
Next up, Pechman explains what the Bitcoin futures ETF actually means and how it functions. Using easy-to-understand examples, he explains how futures contracts allow investors to leverage their bets.
Do you have a question about a coin or topic not covered here? Don’t worry! Join the YouTube chat room, and write your questions there. The Cointelegraph experts will do their best to make sure you get the answer you’re looking for.
“The Market Report” streams live every Thursday at 4:00 pm UTC, so be sure to head on over to Cointelegraph’s YouTube page, and smash that like and subscribe button for all our future videos and updates.
Bitcoin (BTC/USD) loses steam after climbing to fresh all-time highs
Risk sentiment and institutional interest continues to support the recent rise
Is BTC/USD poised for bullish continuation or is a correction in order?
The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section
Bitcoin Falls From Fresh ATH
Following the release of the first futures based Bitcoin ETF (‘BITO’), bulls trading BTC/USD drove the price of the first major cryptocurrency to a fresh all-time high of around $67,076 before falling back to the $65,000 handle.
With inflation pressures on the rise, the launch of the first ETF which tracks the price of Bitcoin futures boosted the demand for digital assets as institutions increased their holdings.
Visit DailyFX education to learn more about technical and fundamental analysis
Thus far, low interest rates have driven investors to higher yield assets, supporting both the equity market and cryptos. However, the release of the Proshares Bitcoin Strategy ETF Bito suggests that regulators may potentially be more open to the idea of allowing large institutions to use Bitcoin as a form of currency over time.
Bitcoin (BTC/USD) Price Action
After four consecutive weeks of gains, Bitcoin prices surpassed the prior high, in an attempt to claim the key psychological level of $70,000 which will likely continue to hold as resistance for the short-term move.
With price action currently tracking the 8-period EMA (exponential moving average) on the weekly time-frame, the CCI (commodity channel index) has risen into overbought territory, above the normal range of -100/+100.
A gauge of U.S. inflation expectations for the next five years has soared to its highest level in more than 16 years, as investors factor in an increasing likelihood that price pressures will linger into next year.
The 5-year breakeven inflation rate was at 2.77% as of Wednesday, based on data from the Federal Reserve Bank of St. Louis. That’s the highest level since April 2005, and up from a pandemic low of 0.16% in March 2020.
Traders and investors are focusing on inflation pressures in the runup to the Federal Reserve’s Nov. 2-3 meeting in Washington because of the likelihood that incoming inflation readings will drift higher for the next few months. The consumer price index has risen by 5% or more on a year-over-year basis for five straight months, but seasonal adjustments to the September data may have made the 5.4% yearly pace appear lower than would otherwise be the case.
“Accelerating inflation is likely to force the Fed to raise rates aggressively” next year, said Jay Hatfield, founder and portfolio manager at Infrastructure Capital Advisors in New York. Hatfield said his firm sees a 50% chance of a recession in 2022, and he expects to see high single-digit percentage increases in CPI readings through next year.
Rob Daly, director of fixed-income at Glenmede Investment Management in Philadelphia, says he’s considering the possibility that inflation turns out to be “durable,” but not necessarily “punitive.”
On Thursday, major U.S. stock indexes were consolidating after rallying earlier this week. The S&P 500
briefly traded above its record closing level, while Dow industrials
fell by 0.4% or more than 100 points. The Nasdaq Composite Index
traded higher by 0.3%.
Spot rubber continued to make moderate gains on Thursday. The commodity edged up mainly on fresh buying as certain companies from the tyre and non-tyre sectors were offering higher rates for RSS grades since a couple of days. As per reports, the domestic supply of NR will be low in short term as the State’s traditional rubber growing region, including the key rubber-producing districts, are badly hit by unseasonal downpours, devastating flash floods, and landslides.RSS-4 improved to ₹172.50 (172) and ₹172 (171.50) per kg respectively, according to traders and the Rubber Board. The grade firmed up to ₹167 (166.50), according to dealers. The volumes were low.Latex pricesThe progress made in vaccination drive across countries can have a negative bearing on the demand for rubber gloves as well as the glove prices, reports the Association of Natural Rubber Producing countries (ANRPC). This may weigh on latex prices. The recent capacity addition in nitrile across countries, particularly in China, can also impact on the demand for latex from the glove manufacturing industry. The developments in the latex market often pass on to RSS market as well.In futures, the front month October delivery was down 0.91 per cent from Wednesday’s settlement price to close at ₹173 per kg with a volume of 5 lots on the Multi Commodity Exchange (MCX).RSS-3 (spot) firmed up to ₹144.50 (142.16) per kg at Bangkok. SMR20 flared up further to ₹139.22 (135.77) and Latex to ₹99.27 (96.87) per kg at Kuala Lumpur.The natural rubber contract for the November delivery was up 0.75 per cent from previous day’s settlement price to close at 14.08 Yuan (₹164.77) per kg with a volume of 4,835 lots in day time trading on Shanghai Futures Exchange (ShFE).Spot rubber rates (₹/kg): RSS-4:172.50 (172), RSS-5: 169.50 (169), ISNR20: 161.50 (161) and Latex (60% drc): 123 (122.50).Rubber Board campaignThe Rubber Board is launching a mass contact programme ‘Campaign 2021’, aiming at increasing production and productivity of natural rubber in the country. The objective of the campaign is to make India self sufficient in domestic NR requirements. KN Raghavan, Executive Director, Rubber Board will inaugurate the programme on Friday, October 22 at 11 am through Facebook live on the Board’s official Facebook page (facebook. com/rubberboard).The theme of the campaign is ‘Resurgence in rubber for Aatmanirbhar Bharath’. Board is expected to contact 50,000 farmers through 2,500 meetings arranged across the country. The campaign will be held either by group meetings or through online meetings. According to a press release issued by the Board, the meetings will be conducted in strict compliance with the Covid-19 protocol.
For instance, Ethereum’s native token Ether (ETH) posted better intraday profits Wednesday, closing 7.32% higher around $4,170. Today, the second-largest cryptocurrency rallied further to $4,374, just $10 shy of its record high at $4,384 on Coinbase.
Conversely, Bitcoin corrected by more than 3.5% to below $65,000. As a result, the ETH/BTC exchange surged by more than 5% to reach an intraday high of 0.06289 BTC.
Similarly, SOL’s performance against the U.S. dollar in the last two days came out better than Bitcoin. That prompted SOL/BTC to climb by more than 8% Thursday to hit 0.0026772 BTC, showing that traders rotated capital out of the Bitcoin market to enter the Solana market.
Bullish pennant triggered
Solana’s latest price rally also appeared as a bullish breakout out of its multi-month consolidation channel.
SOL started consolidating sideways inside a Triangle-like trading range after rallying by more than 200% in the August-September period. As a result, the formation of more than two higher lows and lower highs, coupled with a declining trade volume, raised the prospect of the channel being a Pennant.
Since Pennant is typically a trend continuation indicator, their formation on the Solana chart after a massive price rally raised its prospects of sending SOL prices higher. Thus, the breakout from Wednesday now eyes an extended run-up, with its target sitting at length equal to the size of the previous uptrend.
In other words, the price target for Solana could be as high as $250 before the end of the month. However, a retest of the Pennant’s upper trendline as support would risk invalidating the bullish setup.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The Japanese Yen has been in a consistent sell-off so far in Q4, going along with the rates theme out of the US.
I had looked into the Yen on Monday, plotting for pullbacks in EUR/JPY with an eye towards support in AUD/JPY and GBP/JPY.
The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.
When the Japanese Yen gets to moving in a trend, it can really put in some significant strength or weakness in a very short period of time, and this was on full display after the FOMC rate decision in September.
When the Fed signaled faster potential rate hikes, along with a possible taper announcement at their next meeting in November, rates markets began to respond very quickly. As I had shared in the Japanese Yen Technical Forecast shortly on the heels of that FOMC rate decision, that rates theme could bring back themes around Yen-weakness, very similar to what had showed in Q1 of this year.
I then picked on GBP/JPY for my Top Trade for Q4, looking to harness weakness in the Japanese Yen by meshing it up with the British Pound, a currency backed by a Central Bank that’s expected to raise rates perhaps even faster and sooner than the Fed. This amounted to a run of almost 900 pips in October trade and that market remains in a very bullish state, as I’ll look at below.
But, generally speaking, the Yen seems oversold given how quickly this move had priced-in, and that can create an environment conducive for pullbacks. I had looked into this on Monday, zeroing in on EUR/JPY as a possible pullback candidate and that’s started to show up with the pair off more than 100 pips from yesterday’s high.
But, the question remains – can JPY pose an even deeper pullback? And if so, which markets might be more attractive for that theme and, on the other hand, which markets are more attractive should JPY weakness come rushing back in?
This was the pullback candidate that I looked at earlier this week, largely drawn from the deduction that the topside move had lagged behind those seen in GBP/JPY or AUD/JPY.
At this point, the pair has set a fresh lower-low on the four-hour chart with a move below the 14.4% Fibonacci retracement. Lower-high resistance can be sought around that level, which is confluent with yesterday’s swing low and last week’s swing-high.
I remain bullish in GBP/JPY but the problem here appears to be timing. The pair has set a fresh five-year-high at 158.21 and despite two separate tests on Tuesday and Wednesday, was unable to break through. Price action has since retreated to trendline support, and below that is a confluent zone that runs from 156.35-156.58.
If matters really come undone, deeper support with possible invalidation of the bullish trend could be sought out around the 155.00 psychological level, which is about 25 pips above the 38.2% Fibonacci retracement of the recent bullish move.
To learn more about Fibonacci or psychological levels, check out DailyFX Education
AUD/JPY was setting up for a breakout at the 85 psychological level earlier this week, with one major level sitting ahead at 85.81. I talked about this setup in that Monday article and the breakout took hold on Tuesday with prices setting a fresh three-year-high yesterday.
At this point, the daily chart is working on a non-completed bearish engulfing pattern which, if today finishes like this, could point to even deeper retracement potential.
For now, the 85 level looms large again but this time as possible support. With that said, if this level comes into play today, then we’re likely looking at that bearish engulf setup which would not be ideal for setting up long positioning. So this level would need to come into play either Friday or Monday as support in order to avoid the bullish setup in front of the bearish engulfing print.
To learn more about the bearish engulfing pattern, check out DailyFX Education
AUD/JPY and CAD/JPY share quite a few similarities at the moment. And if one thinks of themes and drivers, it makes sense: Both AUD and CAD are commodity currencies and commodities have generally been ripping (except for Gold), and when this has been meshed up with the short-Yen theme on the back of the rates premise, this has made for some really strong trends in both markets.
I had looked into CAD/JPY yesterday, trying to plot for some support potential, and the first level of note may be soon coming into play. But, given the way that this has shown, like AUD/JPY above, a warning is in order as price action is working on a non-completed bearish engulfing pattern on the daily chart. If this completes that way, it could be a lousy signal for long positions, and may instead point to the possibility of a deeper pullback. And a level that is very visible for such a scenario is around the 90.00 handle, which has yet to be tested as support in the pair after last week’s breakout.