+18,001 USD.　Bitcoin and Ethereum Investment Products Make Their Debut on the London Stock Exchange!

Due to a series of hawkish statements from Federal Reserve (Fed) officials and insights from the FOMC minutes indicating that "several officials are willing to tighten further if necessary," the USD surged more than expected. Positions betting on a USD sell-off were stopped out across the board. Poor timing in closing positions also resulted in overall flat profits.

The increase in positions while failing to ride the wave successfully was a mistake.

From the 27th onwards, I plan to be more flexible with USD trades, reduce the number of positions, and take a more cautious approach.

Future Focus Points:
1. USD/JPY: Strong Support Due to Eased Rate Cut Expectations
USD/JPY is likely to remain strong due to diminished expectations of US rate cuts and strong anticipation of yen depreciation. Despite renewed rate cut expectations driven by weak US labor indicators, hawkish statements from Fed officials and the FOMC minutes from April 30-May 1, indicating "several officials are willing to tighten further if necessary," have reduced rate cut expectations again. Currently, the market is leaning towards one rate cut instead of two this year, with some even predicting a rate hike. This backdrop suggests that the USD will continue to be supported next week.

(Source: Trader's web)

The USD is expected to fluctuate with rising and falling rate cut expectations. Unless very clear data emerges, this situation is likely to continue. In this context, the core PCE deflator for April, to be released on the 31st, will be of particular interest. I plan to approach USD trades flexibly, both buying and selling as the situation demands.

2. New Zealand Central Bank Holds Policy Rate at 5.5%, Delays Rate Cut Expectations
The Reserve Bank of New Zealand (RBNZ) held its official cash rate (OCR) at a 15-year high of 5.5% for the seventh consecutive meeting on the 22nd. However, with continued inflationary pressures, it raised its peak rate forecast and postponed the start of rate cuts to the third quarter of 2025.
All 30 economists surveyed by Reuters had expected the rate to remain unchanged, though some anticipated a softening of the hawkish stance.
The statement noted that the annual increase in the Consumer Price Index (CPI) is above the board's target of 1-3%, with domestic services inflation persisting. The board agreed that maintaining restrictive monetary policy is necessary to ensure inflation returns to the target within a reasonable period.

Considering Rate Hike
RBNZ Governor Orr explained that a rate hike was "seriously considered" at this meeting, but it was deemed sufficient to maintain tight policy for a longer period to return inflation to target.

(Source: Reuters)

The statement was more hawkish than expected, suggesting the NZD will remain firm.

3. Bitcoin and Ethereum Investment Products to Debut on London Stock Exchange
On the 22nd, US asset management company WisdomTree announced it would list investment products (ETPs) for Bitcoin and Ethereum on the London Stock Exchange for the first time on the 28th.

The company received approval from the UK Financial Conduct Authority (FCA). Trading will be restricted to professional investors, such as regulated asset managers, and individual investors will not be able to trade.
The FCA has been cautious, emphasizing that investing in cryptocurrency investment products is high-risk and prohibiting sales to individual investors.

In the US, the SEC approved an exchange-traded fund (ETF) for Bitcoin in January, which has begun trading. An ETF for Ethereum is also expected to be approved within the week.

ETPs are listed and traded on exchanges like stocks and offer similar returns to actual investments in the underlying assets, including ETFs.

(Source: Nikkei)

Following the approval of the US Bitcoin ETF in January, acceptance of cryptocurrencies is progressing worldwide. This trend will likely continue, pushing Bitcoin prices higher.

P.S.

Yamada Holdings, Japan's largest electronics retailer, has embarked on implementing AI robot-assisted customer service.

Although the current robots are clearly mechanical and remotely operated by humans, the day will come when AI-powered robots indistinguishable from humans will provide customer service.
With a global decline in the labor force expected, labor will increasingly shift from humans to AI robots.

Elon Musk has commented that "AI will take all of our jobs," but this isn't necessarily bad. AI and robots will provide the products and services people want, potentially making work optional. People could choose to work as a hobby if they wish.

However, as everything becomes AI-driven, it's essential to consider now what you want to do.

Have a great weekend! 😊