Connect with us

Economy November 5, 2021

EUR/USD bounces back from yearly lows towards 1.1550

Published

on

  • EUR/USD has bounced from new yearly lows below 1.1520 trading sideways on the day and for the week, above 1.1550.
  • The US dollar has weakened in recent trading as US bonds trigger a further drop in global yields.

EUR/USD has seen a surprise reversal after making new yearly lows below 1.1520 earlier in the session on the back of the stronger-than-expected U.S. labor market report for October.

EUR/USD

MetaNews.

The pair is now trading over 1.1550 and has been trading sideways for the past week and day. The dollar, which is now losing ground versus all of its main G10 peers, is driving the most recent move.

In recent trading, the US dollar has dropped in the G10 rankings and currently lies in the center of the performance table. Despite being one of the best performing G10 currencies prior to the US data.

U.S. bonds lead global yield decline

One of the causes for the rebound could be profit-taking. Currency markets are more inclined to follow the lead of some unusual bond market movements.

Bond rates around the world are continuing to fall, particularly in the United States. 2-year rates have dropped around 3 basis points to below 0.40 percent. While 10-year yields have dropped nearly 7 basis points to roughly 1.45 percent, their lowest level since late September.

European yields are also falling

Meanwhile, European yields are decreasing as well, albeit to a lesser extent, with German 2-year yields down 2 basis points at -0.74 percent and German 10-year yields down 6 basis points at -0.28 percent. As a result, yield spreads between the US and Europe have narrowed significantly, boosting the EUR/USD.

The reaction of global markets to a stronger-than-expected US labor market report is to lower yields, which is quite perplexing.

Markets value better economic growth, which raises inflation expectations, and so raises expectations for higher interest rates to combat such inflation. It’s possible that technical buying, notably in US 10-year yields, is having a role.

Bond investors are likely to understand that bonds at these levels are not very appealing as they consider the implications of the recent jobs report for economic growth, inflation, and Fed policy (i.e., yields are too low).

Next week, the US consumer price inflation data will be announced, and if the headline number remains over 5.0 percent, it may serve as a reminder that the “transitory” inflation narrative promoted by many central banks around the world is under increasing strain.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Economy

Microsoft clearly engages in the metaverse using Q2 earnings call

Published

on

Satya Nadella, CEO of Microsoft, revealed his vision for the metaverse at the company’s Q2 2022 earnings call.

Overall, the company’s Q2 2022 filing showed a significant increase in cloud-based services. Microsoft reported $51.7 billion in revenue, a 20% increase over the previous year. Intelligent Cloud revenue was $18.3 billion, a 26 percent increase over the previous year. Azure drove a 29 percent increase in sales for server goods and cloud services. As well as a 46 percent increase in revenue for other cloud services.

microsoft

MetaNews.

Among the trends noted by Nadella on the earnings call was a “structural shift in PC demand.”

According to Microsoft CFO Amy Hood, Windows revenue from PC manufacturers increased by 25%, which was “far over expectations”. She stated that demand was being driven by the PC market’s success, particularly in the commercial category.

According to an earnings call transcript obtained on the financial blog site Seeking Alpha, Nadella envisions the metaverse as the next wave of the Internet. “Just as the initial wave of the Internet has allowed anyone to construct a website, I believe the next wave of the Internet will be a more open world where people, whether companies, game developers, or anyone else, may create their own metaverse world,” he stated.

“The first place we see this is the increasing digitization of people, places, and things to truly enable organizations automate operations at the next level,” he explained. “So, today, we have a number of examples of customers engaging with us through Azure IoT, Digital Twins, and Mesh. So that’s what you’ll see in Azure, and we’re investing heavily on it.”

Nadella sees prospects for Dynamics 365 Connected Spaces further up the software stack. This in-development technology is to control physical operations in physical areas such as a store, a connected factory, or a building. “We now have a suite that powers entirely by connected spaces,” he explained. Microsoft’s goal, he noted, is to automate physical operations.

Continue Reading

Economy

Style.me introduces its wearable NFTs in the metaverse

Published

on

Style.me, the industry-leading 3D fashion technology company, has launched a new innovative offering that enables designers to become metaverse-capable creators. In addition this latest step extends the company’s solutions into the world of digital fashion and NFTs. Moreover building on its growing success in virtual fitting and styling.

Style.me

MetaNews.

The company Style.me mints and distributes fashion NFTs

Style.me creates and distributes fashion NFTs, allowing people to wear, share, and use them across the metaverse. In addition, the company gives its partners the ability to bring their physical collections into the digital realm through bespoke “phygital” experiences.

The company Style.me’s plug-and-play technologies will allow metaverse projects to make digital fashion accessible to their communities. New experiences, such as virtual runway presentations, exhibitions, and live events, will be possible for designers and companies.

Style.me, with its 3D and AR technologies, is at the forefront of making digital fashion more accessible

Fashion NFT utilities are now limited, and Style.me is at the forefront of making digital fashion more accessible with its 3D and AR technology.

Style.me’s President, Rufus Parkinson, stated. “Style.me’s mission has been to enable consumers to see and interact with fashion in the digital environment since its inception. We believe that digital fashion and NFTs will alter the industry by allowing us to leverage our patented technology to open up a new dimension of user experiences.”

Combined with blockchain technology and the rapid expansion of the metaverse, digital fashion will explode in the next few years. Morgan Stanley estimates that the premium digital fashion sector alone will reach $20 billion by 2030.

Style.me’s goods are already in high demand, with consumption rising 386 percent in the last year, and this additional fashion NFT offering offers up even more prospects for growth in the digital fashion industry.

Continue Reading

Economy

Metaverse: Tencent is updating QQ with the Unreal game engine

Published

on

According to an upgraded version of the program, Tencent Holdings has stealthily integrated the Unreal Engine video game engine into its increasingly obsolete QQ messaging network. Hence, analysts believe the move is part of the social media and gaming giant’s entrance into the metaverse.

metaverse tencent

According to LibChecker, a third-party app inspection tool, the Shenzhen-based company updated QQ last month. The new version, which was formerly a chat app, includes portions of the Unreal Engine video game engine.

Tencent launched a new app feature called Super QQ Show, which is a 3D interactive arena where users can socialize, watch shows, and play games, at the same time as the update. As a result, observers claim the move is Tencent’s latest attempt to establish a footprint in the metaverse.

Resuscitating QQ.

The decision also demonstrates Tencent’s commitment to resuscitate QQ, its second most popular messaging platform behind WeChat with 590 million monthly active users, which had fallen out of favor in recent years as Chinese netizens shifted their attention to short videos and other platforms.

In China, the metaverse is gaining traction. Although the country has not yet developed a national plan for the concept, like South Korea has, officials in some key cities have pushed businesses to investigate it. For example, one of four frontiers to explore in Shanghai’s future five-year plan is the metaverse.

The Super QQ Show is currently under testing by a small number of users. Tencent staff uploaded screenshots and video footage of the functionality. Which shows players dressing up their avatars in 3D, decorating their homes, and visiting others. Thus similar to Nintendo’s Animal Crossing video game franchise.

The Unreal Engine is utilized in successful games such as Bioshock and Mass Effect. Tencent owns a 40% share in Epic Games, which operates the engine in the United States. Last year, Epic Games was one of the first worldwide tech behemoths to make metaverse development a top priority. Epic’s flagship game, Fortnite, considered as one of the market’s leading metaverse initiatives.

For MetaNews.

Continue Reading

Latest News

Advertise With Us

Unlock a wide range of advertising
opportunities with MetaNews to reach the
fast-paced meta world.

Publish Your PR

Share your press release with
MetaNews’s growing global audience,
fans, and followers.

Subscribe

Sign up here to get news & updates right to your inbox!

Copyright © 1997 – 2022 MetaNews All Rights Reserved

Copyright © 1997 - 2022 MetaNews All Rights Reserved