MARKET UPDATE

Asia FX rises, Dollar retreats ahead of nonfarm payrolls

Most Asian currencies advanced on Friday, capitalizing on sustained weakness in the dollar as markets bet on a potential pause in the Federal Reserve’s rate hike cycle, with focus turning to key labour data due later in the day.

The rate-sensitive South Korean won was the best performer for the day, rising 0.5% in an extension of sharp gains from the prior session. The won was also set to close the week nearly 1.6% higher, amid easing pressure from the dollar and Treasury yields.

The Japanese yen rose 0.2% in holiday-thinned trade and was set to close the week about 1.7% higher as it benefited from increased safe haven demand. Fears of a U.S. banking crisis, coupled with a warning from the Fed on a potential recession this year, saw safe havens such as yen and gold benefit this week, with the latter reaching record highs.

 

Oil steadies after bruising week

Oil prices steadied on Friday but were set for their worst weekly drop in nearly two months amid fears of slowing U.S. economic growth and a softer-than-expected rebound in Chinese demand.

Concerns that a U.S. banking crisis could further stymie economic growth also weighed, with crude logging steep losses following the collapse of yet another U.S. bank this week.

Brent oil futures rose 0.1% to $72.58 a barrel, while West Texas Intermediate crude futures rose 0.1% to $68.67 a barrel by 20:52 ET (00:52 GMT). Both contracts were set to lose between 8% and 11% this week and were set for a third straight week of declines.

Oil prices saw some support over the past session, amid supply concerns stemming from Iran and Russia. Weakness in the dollar, amid growing expectations for a Federal Reserve rate pause, also stemmed a bigger rout in crude markets.

But persistent concerns over a recession limited any upside in oil prices, which were trading close to their lowest levels since December 2021.

 

Israel seized Binance crypto accounts to ‘thwart’ Islamic State

Israel has seized around 190 crypto accounts at crypto exchange Binance since 2021, including two it said were linked to Islamic State and dozens of others it said were owned by Palestinian firms connected to the Islamist Hamas group, documents released by the country’s counter-terror authorities show.

Israel’s National Bureau for Counter Terror Financing (NBCTF) on Jan. 12 confiscated two Binance accounts and their contents, one of the documents on the NBCTF’s website showed. The seizure was to “thwart the activity” of Islamic State and “impair its ability to further its goals,” the NBCTF said on its website.

The NBCTF document, which has not been previously reported, did not give any details on the value of the crypto seized, nor how the accounts were connected to Islamic State.

Binance, the world’s largest crypto exchange by trading volumes, did not respond to Reuters’ calls and emails seeking comment.

Israel’s defence ministry, which is responsible for the NBCTF, did not immediately respond to a Reuters request for comment.

Under Israeli law, the country’s defence minister can order the seizure and confiscation of assets that the ministry deems related to terrorism.

Regulators globally have long called for tighter controls on crypto exchanges to prevent illegal activities, from money laundering to the financing of terrorism. The seizures by Israel’s NBCTF highlight how governments are targeting crypto companies in their efforts to prevent illegal activity.

Binance, founded in 2017 by CEO Changpeng Zhao, says on its website it reviews information requests from governments and law enforcement agencies on a case-by-case basis, disclosing information as legally required.

 

 

 

 

Important Note: The information found on Ausprime platform is intended only to be informative, is not advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not include any specific investment objectives, financial situation and needs of any specific person who may receive it. The past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statement