On Monday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1886 as compared to Friday’s fix of 7.1889 and 7.3353 Reuters estimates.
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The NZD/USD pair holds positive ground around 0.5600 during the Asian trading hours on Monday.
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Japan’s core machinery orders rose 3.4% in November, exceeding expectations and signaling a recovery in capital expenditure ahead of the Bank of Japan’s interest rate review.
Orders from manufacturers jumped 6.0%
Analysts attribute the strength to labor shortages and digitalization-driven investment.
Despite uncertainties, including the incoming U.S. Trump presidency, business sentiment has improved.
This article was written by Eamonn Sheridan at www.forexlive.com.
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People’s Bank of China Loan Prime Rate (LPR) setting.
1-year set at 3.1%
5-year set at 3.6%
***
As I posted earlier:
Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. The one-year LPR and the over-five-year LPR are currently at 3.10% and 3.60%, respectively.
Recent moves:
July 22, 2024: The one-year LPR was reduced by 10 basis points to 3.35%, and the over-five-year LPR was lowered by 10 basis points to 3.85%.
October 21, 2024: The one-year LPR was further reduced by 25 basis points to 3.10%, and the over-five-year LPR was decreased by 25 basis points to 3.60%.
November 20, 2024: Both the one-year LPR and the over-five-year LPR were maintained at 3.10% and 3.60%, respectively.
December 20, 2024: The PBOC kept both the one-year LPR and the over-five-year LPR unchanged.
This article was written by Eamonn Sheridan at www.forexlive.com.
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President-elect Donald Trump could announce as many as 100 executive orders within hours of being sworn in as the 47th President.
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The AUD/USD pair weakens to around 0.6190, snapping the two-day losing streak during the early Asian session on Monday.
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Gold price (XAU/USD) extends its decline to near $2,695 during the early Asian session on Monday.
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A long-delayed ceasefire in the Gaza conflict started to take hold when Hamas released three female hostages in return for 90 Palestinians imprisoned in Israel, per Bloomberg.
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South Korea’s top cryptocurrency exchange, Upbit, is
facing a regulatory storm. Accused of breaching Know Your Customer (KYC)
obligations, the platform faces a suspension that could bar it from registering
new users for six months.
According to local media publication Naver, The
Financial Intelligence Unit (FIU), part of South Korea’s Financial Services
Commission, issued the suspension notice following a review of Upbit’s business
license renewal.
FIU Cracks Down on KYC Failures
According to the report, the regulator discovered
between 500,000 and 700,000 instances of improper KYC verification. This
revelation could reportedly result in fines totaling $34.3 billion, with
penalties of up to $68,600 per violation under the country’s Special Financial
Transactions Act.
Additionally, authorities allege that Upbit violated
laws restricting transactions with unregistered foreign crypto service
providers. An FIU spokesperson stated the enforcement action highlights a
commitment to restoring order and fairness in the cryptocurrency space.
.@Official_Upbit could face sanctions in South Korea for not complying with country’s money laundering and KYC obligations, according to a report. By @camomileshumba.https://t.co/Q8jws6Nz7U
— CoinDesk (@CoinDesk) January 16, 2025
While the proposed sanctions would only limit new user
registrations, the reputational and financial fallout could be far-reaching.
Upbit, which controls over 70% of South Korea’s crypto trading volume, reported
daily trades exceeding $7 billion in 2024, according to CoinGecko data.
With its business license renewal still under review,
the timing of these penalties could complicate its ability to operate smoothly
in the future. The FIU will reportedly finalize its decision on January 21,
following Upbit’s opportunity to present its case by January 20.
This disciplinary action signals a broader regulatory
push to strengthen anti-money laundering and counter-terrorism financing measures in the cryptocurrency space.
Tightening Regulations
The Virtual Asset User Protection Act, implemented in
July 2024, has already reshaped the compliance landscape, forcing exchanges to
navigate stricter requirements.
The digital asset market is closely monitoring the
situation, with fears that Upbit’s case may set a precedent for harsher
enforcement across the industry. The controversy followed the 2017 data breach at
Bithumb, another major South Korean exchange, which exposed 31,000 user
accounts.
South Korea’s regulators have since tightened their
grip on crypto businesses, as seen in this high-profile action against Upbit. The industry now awaits the FIU’s final ruling, which
will determine Upbit’s fate and the regulatory trajectory for South Korea’s
crypto sector.
This article was written by Jared Kirui at www.financemagnates.com.
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A brief summary of a note from Nomura re their outlook for Federal Reserve monetary policy:
This article was written by Eamonn Sheridan at www.forexlive.com.
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Trump spoke on Sunday at a rally in Washinton:
Earlier:
No mention of tariffs in the comments (see that second link).
Still plenty of ****coins being launched:
This article was written by Eamonn Sheridan at www.forexlive.com.
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