Bitcoin –

Bitcoin spent most of June range bound between $30,000 and $42,000 after the strong move in the 3rd week of May saw price fall more than 50% from the April all time high at $64,897.

  • MicroStrategy raised $500M in senior secured notes and used the proceeds to purchase 13,005 bitcoin for an estimated $489M according to MicroStrategy’s Chief Executive Officer Michael Saylor’s tweet on 21st June. The company’s holding of bitcoin totals 105,085 and worth over $3.2B at $30,000 making it the largest holder of the cryptocurrency of any other publicly listed company.
  • China-based bitcoin miners are closing their mining operations after China announced a ban on bitcoin mining. The hashrate had fallen from 160 ExaHash/s to around 86 ExaHash/s which are levels not seen since May 2020.

US Dollar –

The U.S. Dollar closed 2.9% higher in June at 92.43 after reaching a low of 89.54 at the end of May. Inflation concerns emerged fueled by higher commodity prices and economic recovery as the impact from Covid recedes allowing business to slowly open and people to travel for business and leisure.

  • The U.S. Federal Reserve announced mid-June in their Federal Open Market Committee (FOMC) statement their intention to raise interest rates late 2023 that led to a sharp rise in DXY from 90.50 to 92.43.
  • The inflation rate was 5% higher in May 2021 versus one year ago and is expected to be a factor as the economy recovers from the impact of Covid.

Singapore Dollar –

The Singapore Dollar closed the month under a key level $1.3525 ending weaker against the U.S. Dollar along with the other major currencies.

  • Finance ministers from the Group of Seven (G-7) rich nations reached an accord on 5th June supporting the creation of a global minimum corporate tax rate of at least 15 per cent which could have implications for multinational corporations with tax advantaged entities in Singapore.

Chinese Yuan –

The Chinese Yuan Renminbi held under $6.5000 ending weaker against the U.S. Dollar which would be seen as positive by China’s central bank authorities concerned with a strong yuan.

  • The People’s Bank of China (PBOC) announced a 200 basis point hike to the reserve requirement ratio (RRR) for foreign currency deposits to 7% from the current 5% with effect from 15th June to temper the pressure from the Chinese Yuan’s appreciation.

Asia Tech –

Technology stocks in Asia recovered well in June after weakness seen in the middle of May.

  • The value of stock market listings by Chinese technology companies dropped in the second quarter, as regulators in Beijing increased their scrutiny of well-known companies in the sector such as the ANT Group.
  • Semiconductor shortages have led to delays affecting multiple industries including car manufacturers, appliance makers and telecommunication companies.

Oil –

Commodities continued their move higher in June including Brent crude oil which ended the month 8.0% higher versus May.

  • Brent crude oil has set three-month highs on higher commodity prices and continued demand resulting from the Covid vaccine roll out and government stimulus.
  • The potential return of oil supplies from Iran, should it reach a new nuclear deal with the US, may give OPEC a reason to proceed cautiously on production levels.

Key Figures –

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TRADDICTIV · Research Team