🏦 Powell's Speech: Yen Plunge and Bitcoin Bounce? 🤑

Good Morning!

Hold onto your hats, traders! Wall Street's got a new adrenaline rush: zero-dated options. These 24-hour thrill rides are turning the stock market into a financial rollercoaster, with tech giants like Nvidia and Apple as the main attractions. It's like day trading on steroids – quick profits for the lucky, whiplash for everyone else! Analysts are waving caution flags faster than a NASCAR pit crew, warning that this options frenzy could turn the market into a mosh pit of volatility.

In today’s email:

• Fed Watch: Fed Chair Powell speaks later today

• USDJPY: Further weakness maybe on the cards for the Yen

• Bitcoin: Might be signalling a bottom

• ByBit: Now the second largest crypto exchange by volume

👇Join: Our exciting community subreddit to join the conversation:

THE BIG IDEA

Powell and Lagarde: The Dynamic Duo Takes on Inflation

Get ready for the financial world's version of a superhero team-up! Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde are about to drop some serious economic knowledge bombs. It's like Avengers: Inflation Wars, but with fewer explosions and more interest rate discussions.

Powell, our American money maestro, is expected to channel his inner Hawk-eye, taking aim at that pesky inflation target. Despite whispers of rate cuts floating around like confetti at a New Year's party, J-Pow's likely to remind us all that the Fed's still on its inflation-busting mission. It's like trying to hit a bullseye while riding a roller coaster – thrilling, but oh so tricky.

Meanwhile, across the pond, Lagarde's pulling a Mary Poppins – trying to make the economic medicine go down in the most delightful way.

She's juggling Eurozone inflation like a circus performer, all while keeping an eye on wage growth that's acting more unpredictable than a cat on catnip.

Both of these financial wizards are expected to wave their data-driven wands, conjuring up a cautious yet determined approach to taming the wild beast that is inflation. It's like they're playing a high-stakes game of economic Jenga, carefully removing and placing policy blocks without toppling the whole structure.

So, grab your popcorn and your economics textbook (just kidding, who reads those anymore?), because this monetary policy double feature is about to hit the global economic theaters. Will Powell and Lagarde save the day? Or will inflation continue its reign of terror? Tune in to find out in the next thrilling episode of "Central Bankers: Guardians of the Economy"!

MARKETS AT A GLANCE

TOP NEWS

Vanguard predicts yen could plummet to 170 per dollar if BOJ's bond policy changes disappoint

The yen's doing a limbo dance, and Vanguard's calling a potential new low of 170 per dollar. Why? It's all about the BOJ's upcoming bond policy reveal. If they don't slash those monthly purchases enough, we might see the yen break dance its way down to levels not seen since parachute pants were cool. But here's the plot twist: a aggressive BOJ move could turn Japanese bonds into the next hot ticket. It's like financial Jenga – one wrong move, and it all comes tumbling down!

BlackRock's Preqin acquisition aims to revolutionize private markets with indexing and data analytics

BlackRock's pulling a Houdini on the private markets. With their $3.2 billion Preqin purchase, they're not just buying data - they're buying a crystal ball. CEO Larry Fink's grand vision? To "index the private markets" and sprinkle some ETF magic on alternatives. It's like bringing GPS to a treasure hunt. With private assets set to hit a whopping $40 trillion by 2030, BlackRock's betting big on making this exclusive club a little less... well, exclusive. Watch out, Wall Street - the index revolution is coming for your secret sauce!

CRYPTO

Bybit surges to second place globally in crypto exchange volume, capitalizing on FTX's collapse and targeting European and Russian markets

There's a new crypto sheriff in town. Bybit, the Dubai-based exchange, has pulled off a digital heist of sorts, snatching the #2 spot in global trading volume. How? By filling the FTX-shaped hole in our hearts (and wallets). Their secret sauce? A fancy cross-margin trading account that lets you use your crypto as collateral. It's like crypto yoga - all about that flexibility! With Europe as their golden goose and a careful tiptoeing act in Russia, Bybit's making waves faster than you can say "blockchain." Watch out, Binance - there's a new kid on the block(chain)!

Bitcoin's deep discount on Coinbase may signal a price bottom, potentially foreshadowing the next rally

Bitcoin's playing limbo on Coinbase, and history suggests it might be ready to spring back like a financial jack-in-the-box. The "Coinbase Premium Index" has plunged deeper than a scuba diver's weekend plans, hitting lows we haven't seen since FTX went belly-up. But here's the kicker - every time BTC gets this cheap on Coinbase, it's like a springboard for moon missions. With U.S.-centric catalysts on the horizon, we might be in for a rollercoaster ride that'd make Six Flags jealous. Buckle up, buttercup - the next 6-12 months could be crypto's wild west!

Circle becomes the first global stablecoin issuer to obtain an EMI license under EU's new MiCA regulations

Looks like Circle just pulled a rabbit out of the EU's regulatory hat! They've snagged the golden ticket - the first EMI license under MiCA rules. It's like getting the first Willy Wonka bar with the golden wrapper, but for crypto. This means Circle can now strut its USDC and EURC stablecoins across the EU's catwalk of 450 million potential users. It's a far cry from the wild west days when stablecoins could play hopscotch with regulations. Circle's Dante Disparte even confessed to feeling like a proud parent of MiCA. Who knew crypto regulation could be so... heartwarming?

GameStop investor drops fraud lawsuit against Roaring Kitty just days after filing, but can refile in the future

Well, folks, the legal drama starring Roaring Kitty just got as short-lived as a Snapchat story! Investor Martin Radev hit the eject button on his lawsuit faster than you can say "stonks." The plot twist? He can still come back for a sequel, thanks to that "without prejudice" dismissal. It's like a cliffhanger ending in the world's briefest legal thriller.

Meanwhile, our feline-friendly protagonist is busy playing 4D chess with Chewy shares. Is it another GameStop in the making, or just catnip for the markets? Either way, Wall Street's watching Roaring Kitty's moves like it's the season finale of "Billions." Stay tuned, because in this financial circus, the next act could be just around the corner!

GOLD

Gold prices inch up as investors eye upcoming U.S. jobs data for Fed rate cut clues

Gold's doing its shiny dance again, folks! It's up 0.2% to $2,329.79 per ounce, riding high on a 4% gain last quarter. Why? Short-term traders are playing catch-up, and bargain hunters are pouncing like cats on a laser pointer.

But here's the kicker: all eyes are on this week's U.S. jobs report. It's like the Super Bowl for gold bugs, potentially signaling the Fed's next move on interest rates. Stay tuned!

DAILY ECONOMIC CALENDAR (ET)

MEME OF THE DAY