Paxful Overtakes LocalBitcoins in P2P Bitcoin Trading in the United States and Canada


Peer-to-peer cryptocurrency trading has been mostly dominated by trading venues such as LocalBitcoins for the past several years, where traders could swap popular cryptocurrencies for U.S. dollars, Canadian dollars, as well as other major fiat currencies using legacy payment processors like PayPal, Moneygram and Western Union.

However, since the start of the year, a new challenger has emerged in the space: Paxful. The service allows consumers to purchase and sell bitcoin anonymously via Amazon, Macy’s, Wallmat and OneVanilla gift cards, in addition to many other online payment systems.

While majority of P2P bitcoin activity in the United States and Canada was conducted on LocalBitcoins in 2017, Paxful has become the leader in the space this year, according to data published by Coin.dance.

In the first week of September, Paxful volumes in the U.S. and Canada were double those of LocalBitcoins:


Paxful’s rapid growth in popularity among American bitcoin users is not just confined to the last few weeks, but extends to the beginning of the year, while turnover on LocalBitcoins has been in decline over the same period.

Paxful volumes in the USA:


LocalBitcoins volumes in the USA:




It remains unclear if LocalBitcoins’ new KYC/AML policies, which came into effect in April, had any negative impact on its existing clientele.

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Lira Surges After Turkish Central Bank Hikes Interest Rates in Defiance of President Erdoğan


In a surprise move on Thursday morning, the Turkish central bank raised its benchmark rate by 625 basis points. The lira surged more than 8% against the U.S dollar, rising from 6.55 to 6.02 lira per dollar - a 2-week high - in under two hours.

The lira took on significant losses in July and August as investors began to have serious concerns over President Erdoğan’s influence on Turkey’s central bank regarding monetary policy, as well as the rising diplomatic tensions between the United States and Turkey.

But today’s strong reaction in the FX markets shows investor confidence in Turkey’s monetary authorities has been restored to some degree.

The central bank also hiked the one-week repo rate from 17.75% to 24%, citing “risks to price stability” and “slowdown in domestic demand.”

President Erdoğan has claimed high interest rates and excessive inflation are a direct result of bad policies by the central bank, however, the bank’s Press Release on Monetary Policy today reiterated its commitment to adjust interest rates as it sees fit:
“The Central Bank will continue to use all available instruments in pursuit of the price stability objective. Tight stance in monetary policy will be maintained decisively until inflation outlook displays a significant improvement.,” said participating committee members.
At press time, the USD/TRY currency pair is trading around 6.09 lira per dollar - a gain of 4.07% for the lira on the day.


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Optimistic Comments From EU's Brexit Negotiator Lift British Pound


The sterling was under pressure last week as conflicting statements on Brexit negotiations were being released to the press by German and British officials.

However, the British pound jumped dramatically against the U.S. dollar today following statements from EU's top Brexit negotiator, Michel Barnier.

Speaking at conference in Slovenia, Barnier said:
"I think that if we are realistic we are able to reach an agreement on the first stage of this negotiation which is the Brexit treaty within six or eight weeks."
Forex speculators piled into the pound immediately after Barnier’s comments, pushing the GBP/USD exchange rate to its highest level since the beginning of August:


At the peak of the frenzied rally, the pound was trading at 1.3052, which translates to a daily gain of more than 1%.

But buying pressure eased up towards the end of the trading day, and the the pound finished on Monday with a gain of 0.85% against the dollar.

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Russian Ruble Down Sharply After PM Medvedev Calls for Lower Rates


The Russian ruble was down as much as 2% against the dollar on Thursday, after Russian Prime Minister Dmitry Medvedev called for “lower cost of loans” to stimulate economic growth at the Moscow Financial Forum.

Prime Minister Medvedev’s comments are in stark contrast to sentiments expressed by Bank of Russia Governor Elvira Nabiullina.

Earlier this week, Nabiullina said that the key interest rate - currently at 7.25% - may be raised at the next meeting, which is scheduled to take place on September 14, 2018.

And as Reuters reports, Bank of Russia’s new monetary policy chief, Alexei Zabotkin, who also spoke at the Moscow Financial Forum today, said rates are likely to be raised due to the current economic conditions in Russia.

While today’s two-percent sell-off was mild compared to the previous crashes related to U.S. sanctions, traders were able to push the ruble down to its lowest level in two and a half years (69.6289 rubles per dollar).

At press time, the USD/RUB currency pair is floating around 69.21.


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British Pound Trading Wildly Amid Conflicting Statements on Brexit Demands from Germany and Britain


The British pound surged on Wednesday on news reports that Germany and the UK have agreed to drop key Brexit demands.

The GBP/USD currency pair rallied more than 1.1% following the reports, hitting a weekly high of 1.2983 against the dollar in early trading on Wednesday.

But the sterling lots the majority of its gains later in the day after a contradictory statement came from a spokesman for the German government, who told Reuters that “the government’s position is unchanged” on Brexit.

At press time, the pound is hovering around 1.2897, up 0.32% on the day.


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Argentine Peso, South African Rand Suffer More Losses as EM Currency Crisis Continues


Although the Turkish Lira has been stable above its all-time lows over the past two days, the South African rand and Argentine peso have continued to decline as the emerging market currency crisis shows no signs of abating any time soon.

The South African rand plunged 3.3% against the dollar on Tuesday, hitting a 2-year low rate of 15.38 rand to the dollar. The last time the rand traded this low against the dollar was on June 29, 2016.

Weakness in the rand was mainly driven by a newly-released Q2 GDP figure, which showed South Africa’s economy contracting by 0.7% - a big decline when compared to analysts’ estimates of 0.6% growth.


The Argentine peso took on slightly bigger losses than the rand, trading down more than 4% today to 39.36 pesos per dollar, after Argentina’s Tax Authority reported lower revenues for the month of August (down almost 0.5B from the previous month of 293.89B).

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Moody's Downgrades, Central Bank Liquidity Tightening Push Turkish Lira Down 3%


The Turkish lira tumbled more than 3.00% against the dollar on Wednesday after Turkey’s central bank doubled banks' borrowing limits in the interbank money market, which effectively tightens liquidity:
"In the light of recent evaluations, the CBRT has decided that, to be effective from 29 August 2018, the banks’ borrowing limits for overnight transactions at the Interbank Money Market established within the CBRT would be twice the limits applicable before 13 August 2018.", said the Turkish central bank.
Turkey’s central bank tried to halt the drop of the lira earlier this month by lowering the Turkish banks’ FX reserve requirement from 45% down to 40%, but the lira’s fall accelerated following that announcement.

On a flight from Paris, Berat Albayrak, the financial minister of Turkey, told Turkish media today that he does not see “big risk about Turkey’s economy or financial system.”

But while Turkey's finance minister sees no “big risk,” ratings agencies are already starting to downgrade Turkish banks and government bonds.

American rating agency Moody's downgraded 18 Turkish banks and two finance companies today, citing deteriorating investor sentiment, and a “substantial increase in the risk of a downside scenario.”

At the height of today’s sell-off, the lira was down approximately 3.4% against the dollar, trading at 6.4832 lira to the dollar. At press time, the USD/TRY currency pair is floating at 6.4500.


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Mexican Peso, Canadian Dollar Surge as President Trump Announces New Trade Deal with Mexico


The U.S. dollar took a tumble today as President Trump announced a trade deal with Mexico that would replace NAFTA.

The Dollar Index tumbled to a 16-day low of 94.60, while the Mexican peso was up as much as 1.56% on Monday against the dollar, trading at 18.60 pesos to the dollar.

“We’re going to call it the United States-Mexico Trade Agreement, and we’ll get rid of the name NAFTA.,” U.S. President Trump explained.

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The Canadian dollar also gained on Monday, trading as high as 1.2953 against its American counterpart, after President Trump and President Pena Nieto made positive remarks on upcoming trade negotiations:

“It is our wish, Mr. President, that now Canada will also be able to be incorporated in all this. And I assume that they going to carry out negotiations of the sensitive bilateral issues between Mexico — rather, between Canada and the United States.,” said President Nieto.

"Canada will start negotiations shortly. I’ll be calling the Prime Minister very soon. And we’ll start negotiation, and if they’d like to negotiate fairly, we’ll do that.," said President Trump.

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Australian Dollar Gains as Scott Morrison Voted in 30th Prime Minister of Australia


The Aussie dollar made a dramatic recovery on Friday, erasing almost all losses incurred on Wednesday and Thursday, after prime minister Malcolm Turnbull was ousted by Liberal party lawmakers.

Turnbull’s replacement, Treasurer Scott Morrison, defeated right-wing candidate Peter Dutton by just five votes.

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In the first hour following Morrison’s win, the Aussie dollar gained about 0.50% percent against the USD, rallying from 0.7250 to 0.7290.

The AUD continued to rally into the New York trading session, gaining an additional 0.75%. At press time, the AUD/USD currency pair is trading at 0.73307, up 1.13% on the day.

While Morrison's win saved the currency from plunging to fresh yearly lows, it remains to be seen if his leadership and policies will be sufficient to reverse the downtrend of the Aussie dollar this year. On Aug. 15, the Aussie dollar hit an 8-month low of 0.72025 against the U.S. dollar:


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Bitcoin P2P Trading Platform Paxful Sees Rising Volumes Despite Crypto Bear Market


Although the price of bitcoin, as well as many other cryptocurrencies, has been in decline since the start of the year, investor and consumer interest in the space has not plateaued.

Volumes on P2P trading site Paxful, which allows consumers to buy/sell bitcoin via gift cards, as well as PayPal and many other online payment methods, have been steadily climbing this year.

According to data accumulated by Coin.dance, weekly Paxful trading activity in Australia, Canada, Europe, New Zealand, United Kingdom and the United States, rose to new all-time highs in July and August:

USA: $21.3 million ATH volume for the week of 2018-08-04


Canada: CAD$1.15 million ATH volume for the week of 2018-07-14


Australia: AUD$617k ATH volume for the week of 2018-07-14


Bitcoin trading activity on LocalBitcoins, the most popular venue for cryptocurrency traders, which began to KYC all of its users back in April, has declined this year in most countries.

However, in countries with a currency crisis like Argentina and Venezuela, LocalBitcoins volumes have continued to grow despite the KYC hurdles.

Argentina: 6 million Argentine peso volume (new record) on LocalBitcoins for the week of 2018-08-11

Rising Inflation and Foreign Investment Lift Canadian Dollar


Encouraging figures from Statistics Canada on Friday gave the Canadian dollar a boost of more than 0.50% against its American counterpart.

According to Statistics Canada, consumer prices rose 3.0% YoY in July. The metric was well above analysts’ forecasts of 2.5%.

Currency speculators and market participants also reacted well to the large increase in foreign investment into Canadian securities, which came in at 11.55 billion for the month of June. Analysts had only predicted 4.91 billion!

The CAD was up close to 0.58% against the dollar at the height of Friday's surge, trading at 1.306 CAD per USD.

At press time, the USD/CAD currency pair has stabilized around 1.3085.

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Retail Forex Brokers Halt Trading in Lira as Turkish Currency Crisis Intensifies


Tickmill, a retail CFD and Forex broker with offices in Europe and the United Kingdom, blocked all of its clients from opening new speculative positions on all TRY (Turkish lira) currency pairs.

In an email to all clients, Tickmill explained that "political turmoil in Turkey" has created "uncertain market conditions."
"We are switching USDTRY, EURTRY and GBPTRY to "Close-Only" mode.," said the email.
Turkey's currency has been losing value since the start of the year due to raging inflation, declining economic output and surging import prices.

And while the central bank of Turkey attempted to halt the lira's plunge on Monday by reducing the currency reserve requirement on domestic banks from 45% down to 40%, the recent sanctions levied on the Turkey by the United States have greatly accelerated the lira's fall.

Just today, the lira dropped 2.70% to a new all-time low of 5.7558 against the dollar. Including today's drop, the lira has lost more than 53% of its value since the start of the year!


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Russian Ruble Tumbles After Details of New U.S. Sanctions Leaked by Russian Media


The Russian ruble suffered significant losses on Wednesday after a Russian news outlet, Kommersant, released full details of a U.S. bill seeking a new set of very severe sanctions on Russia for election meddling.

The new bill aims to impose sanctions on Russian sovereign debt, as well as blocking dollar-based transactions of Russia’s largest banks. Sberbank, VTB Bank, Gazprombank, Bank of Moscow, among others, are named in the bipartisan bill.

At press time, the ruble is down close to 2.5% against the U.S. dollar on the day, trading at a 4-month low of 65.13 rubles per dollar:


While the bill has plenty of biting provisions within it, the Russian economy/government will not feel any of its effects until the House is able to vote in September.

Senior economist & strategist at Danske Bank, Vladimir Miklashevsky, said on Twitter that the ruble will incur significant losses if the bill becomes law.

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British Pound Slides to Lowest Level in 11 Months as Brexit Negotiations Deteriorate


The British pound sold-off on Monday to its lowest level in 11 months amid rising worries over Brexit.

The pound came under strong pressure following an interview of Britain’s international trade secretary, Liam Fox, who told The Times that there is “60‑40” chance of failed Brexit negotiations.

During the interview, Fox also accused the European political elite of putting “theological obsessions” ahead of the economic stability and well being of the union.

Fox’s comments sent the pound tumbling on Monday to an 11-month low of 1.2920. At press time, the GBP/USD currency pair is floating slightly above the day’s lows at 1.2945.

The pound also lost ground against the euro during Monday’s trading session. The EUR/GBP pair closed at 0.89256 - a drop of approximately 0.33% for the pound.


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Turkish Lira in Free Fall as Central Bank Scrambles to Boost Liquidity


In a bid to halt the lira’s plunge, the Turkish central bank lowered the FX reserve requirement on Monday from 45% down to 40%:

“With this revision, approximately $2.2 billion of liquidity will be provided to banks.,” said Turkey’s central bank.

While the unexpected news caught currency traders off guard, briefly halting the sell-off, the lira’s plunge accelerated following the announcement.

So far today, the lira is down 3.8% against the U.S. dollar, trading at a new all-time low of 5.28 lira to the dollar:


Investor confidence in Turkey's economy and currency has deteriorated significantly since the re-election President Erdogan, who has repeatedly called on the central bank to maintain low interest rates, despite surging inflation, declining economic output and rising import prices.

In its last release on July 31, Turkey's central bank revised its 2018 inflation forecast from 8.4% to a whopping 13.4%.

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Bank of England Hikes Rates, Triggers Sell-Off in the British Pound


The British pound slid on Thursday after members of the Bank of England’s Monetary Policy Committee voted 9-0 to raise interest rates by 25 basis points to 0.75%.

This is only the second time the BoE has voted to raise the benchmark rate since the global financial crisis.

Although the rate hike was expected by most analysts and market participants, the unanonymous vote was not priced into the currency markets.

Selling pressure on the pound increased substantially following the release of BoE’s Inflation Report - released after the decision - which states that British businesses are still most concerned about the potential fallout from a bad Brexit deal:
“But respondents to the 2018 Q2 Deloitte CFO Survey again ranked Brexit as the top risk facing their businesses, and three quarters of respondents expected Brexit to lead to a deterioration in the business environment in the long term, the highest proportion since the referendum.”
Following the report, the pound sold-off more than 0.50% against the U.S. dollar, hitting at an 11-day low at 1.3126.

Ar press time, the GBP/USD currency pair is only about 0.57% away from breaking the 2018 lows at 1.2957, recorded on July 19.