EUR/GBP Price Forecast: Cross remains capped below Key SMAs despite tentative rebound

The post Japanese Yen: Valuation risks and policy coordination – BNY appeared on BitcoinEthereumNews.com. BNY’s Geoff Yu highlights that the Japanese Yen (JPY) remains significantly undervalued on a Real Effective Exchange Rate (REER) basis even as Euro (EUR) and US Dollar (USD) valuations have converged. He notes United States (US) –Japan coordination on exchange rates is already underway and argues Europe should be more proactive, as sustained JPY weakness poses greater competitive risks for Eurozone exporters than for the United States. JPY undervaluation and European risks “Based on the Bank for International Settlements’ (BIS) Real Effective Exchange Rate (REER) indices, measured by their change over the last five years, the dollar and euro have fully converged in valuation over the past six months. A range breakout would require a significant structural catalyst – the technology drivers behind “U.S. exceptionalism” or the “European strategic autonomy” theme on defense.” “Japan ha

The post Bank of England Softens ‘Overly Conservative’ Stablecoin Plans Amid Industry Pressure appeared on BitcoinEthereumNews.com. In brief The Bank of England is reportedly reconsidering parts of its stablecoin plan. A 40% reserve floor could cost issuers £11.2 million per £1 billion in circulation. Observers say the bank’s shift could point to a move toward a more workable regime. The Bank of England is reconsidering key parts of its proposed stablecoin rules, softening its push after industry pushback over planned limits on holdings and reserve requirements. Sarah Breeden, the Bank of England’s deputy governor for financial stability, told the Financial Times on Thursday that officials were weighing other approaches to containing stablecoin-related risks as the sector grows. “It was based on experience of potential liquidity stress,” Breeden said. “But we will look hard to see if we have been overly conservative in our thinking there.” Breeden noted the reserve proposal was based o

Insider Brief UK robotics startup Humanoid has announced a deployment and supply agreement with Schaeffler to bring humanoid robots into live manufacturing operations. According to Humanoid, the agreement calls for phased deployment of Humanoid’s wheeled humanoid robots across Schaeffler facilities, with the first systems expected to begin operating at plants in Germany before the end […]

The post BoE Considers Easing UK Stablecoin Caps After Industry Backlash appeared on BitcoinEthereumNews.com. Update May 14, 2:45 pm UTC: This article has been updated to include comments from Katie Haries, head of policy for Europe at Coinbase. The Bank of England (BoE) is reconsidering parts of its proposed regime for pound sterling stablecoins after digital asset companies warned that holding caps and reserve requirements could stifle adoption and make UK-issued tokens uneconomic. The central bank is looking at alternatives to temporary caps on how many stablecoins individuals and businesses can hold, and is examining whether its requirement that at least 40% of backing assets be held as non-interest-bearing deposits at the BoE is overly conservative, Deputy Governor Sarah Breeden told the Financial Times. The rethink comes as the UK government and regulators try to position Britain as a competitive hub for digital assets while containing risks to bank funding and financial stabilit

The post British Pound: Volatility focus shifts to politics – DBS appeared on BitcoinEthereumNews.com. DBS Bank’s Philip Wee reviews recent FX volatility through the Pound, noting that GBP has been more resilient than EUR and CHF since Operation Epic Fury, helped by the UK’s lower exposure to the energy shock and higher policy rates. However, he highlights that GBP has recently underperformed as markets refocus on UK political risks and reassess Bank of England tightening expectations. Pound resilience gives way to politics risk “Following the start of Operation Epic Fury, GBP (-1.9%) was more resilient than the EUR (-2.2%) and CHF (-3.8%) in March.” “In April, GBP (+2.9%) outperformed the CHF (+2.3%) and EUR(+1.5%).” “However, GBP (-0.6%) underperformed the EUR (-0.2%) and CHF(-0.1%) in the first half of May.” “Markets now see GBP facing a reality check as focus shifts from the US-Iran conflict to 10 Downing Street.” “In the end, the GBP’s outlook remains tethered to the escalation or

BoE officials are reportedly reviewing caps and reserve rules as the UK tries to keep stablecoin issuers onshore.

Rising UK borrowing costs amid political and inflationary pressures could trigger capital flight, impacting economic stability and investor confidence. The post UK borrowing costs hit 18-year high as leadership uncertainty rattles gilt markets appeared first on Crypto Briefing.

The post British Pound: Political risks and Gilt reprieve – Societe Generale appeared on BitcoinEthereumNews.com. Societe Generale strategists note that the recent selloff in Gilts has eased after long-end yields spiked to multi-year highs on fears of looser fiscal rules under a more left-wing Labour leadership. They highlight internal Labour Party dynamics, with several senior figures leaning left on spending and borrowing but favouring closer EU ties, while identifying Wes Streeting as the most market-friendly, fiscally conservative option. Gilts steady as Labour risks evolve “In the UK, the selloff in Gilts abated after the spike to multi-year highs in long-end yields over concerns for a loosening of fiscal rules under a more left-wing Labour party leadership.” “Health Secretary Wes Streeting could trigger a leadership contest as early as today and with Andy Burnham not in a position to contest, Angela Rayner indicated she may run after being cleared by HMRC of deliberate wrongdoing