Main Takeaway: US Dollar Further Strengthens Against The Euro
Amidst a global recession and a strengthening Dollar, many global currencies have weakened – but for the first time in 20 years, the Euro is now on parity with the Dollar. This is occurring because the European Central Bank was late to raising interest rates and is the economic area most affected by the Russia-Ukraine War.
The cryptocurrency markets have also dipped on this news. However, they’ve also tanked because of a host of factors including rising interest rates, out-of-control inflation, a strengthening US Dollar, and an exit from risk-on assets. The crypto markets are down almost 4% d-o-d.
White House spokeswoman Jean-Pierre along with many experts predict that this month’s US CPI numbers will be more elevated than last month’s, and as a result, could cause a further increase in volatility to the downside for cryptos and stocks. Investors should watch this and the Fed’s reaction later in the week on a hawkish rate hike.
Key Stories: 3AC Founders On The Run
New York District bankruptcy court filings have mentioned that Zhu Su and Kyle Davis are not cooperating with legal authorities and have left Singapore. Their current whereabouts are unknown, with rumors being that they’ve fled to the UAE. Lawyers are currently concerned about 3AC’s personal, corporate assets such as wallets, bank accounts, derivatives contracts, securities, cash, properties, cryptocurrencies, and high-priced NFTs.
Moving away from messy legal issues, In the NFT space, there have been two news stories that are particularly interesting that have developed in the past day. The first is from Gamestop which announced the launch of its NFT marketplace to allow gamers, creators, and collectors to buy, sell, and trade NFTs. GameStop’s NFT marketplace is a non-custodial Ethereum layer-2-based marketplace.
The second piece of NFT news is an announcement from Playboy to launch a MetaMansion in The Sandbox metaverse. This follows moves by banks, Pepsi, and retailers such as Nike in entering the metaverse space whether in partnership with Decentraland or The Sandbox.