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Markets Turn Focus on US Jobs Data this Week
ETFS Multi-Asset Weekly Markets Turn Focus on US Jobs Data this Week
Highlights
Carbon rallies on hopes of reform to emissions trading scheme.
European stocks advance following the launch of QE.
US jobs in focus for USD after GDP disappoints.
The Federal Reserve Open Market Committee sent a mixed message, acknowledging the softness in prices while pointing to strength in economic expansion and jobs. US Dollar appreciated, focusing on the implications of economic strengthening on the likelihood of a rate rise. The optimism in economic activity may sit at odds with the slightly disappointing GDP figures released later last week and this week’s jobs numbers could drive a reversal in Dollar strength if they prove to be disappointing.
Commodities
Carbon rallies on hopes of reform to emissions trading scheme. Carbon rose 4.1% after proposals to amend the EU carbon trading scheme were rejected by the European parliament. The failure of the reforms creates an opportunity for the implementation of more ambitious changes which would take affect sooner relieving the current glut of carbon credits. In the agricultural space the price of soybean oil plunged 7.6% as US regulators approved a request for Argentinian biofuel makers to export to the US market. This created fears that the US market would be awash with supply from its South American counterparts. During the week, exchange traded sugar prices fell 6.7% following signals that Indian authorities would launch a production subsidy for raw sugar. The subsidy would make it economically viable for sugar mills in India to begin exporting onto global markets before international competitors like Brazil and Thailand begin to do so later in the year.
Equities
European stocks advance following the launch of QE. European stocks ended the week higher after experiencing higher volatility. European stock markets remain buoyed by the ECB announcement of QE but face uncertainty over developments in Greece and the approach of the newly elected left-wing Syriza government to international debt negotiations. The result was that the EURO STOXX 50® Investable Volatility Index increased by 3.3% during the week. Elsewhere, the Federal Open Market Committee (FOMC) signaled, after its first meeting, that it is still on track to raise short term interest rates this year recognizing the solid pace of economic growth in the US. The prospect of higher US rates caused the gold price to drop 2.1% and in turn the DAXglobal® Gold Miners Index to fall 4%.
Currencies
US jobs in focus for USD after GDP disappoints. With the US Dollar continuing its surge higher against most major currencies last week, the risk of a correction increases, especially if the underlying economic data disappoints. The Fed broadly maintained its guidance about monetary policy, but if the weakening global situation begins to have a bigger impact on the domestic US economy, that could all change quickly. To that end, the key releases for the USD this week are ISM manufacturing index and the jobs data on Friday and if they disappoint as the Q4 GDP data did then there is likely to be a negative reaction from the USD. Markets will likely push back expectations for a rate hike, which is priced in for September currently. Both the Reserve Bank of Australia and Bank of England rate decisions are likely to take somewhat of a back seat to US economic releases, with the BOE expected to keep policy unchanged. Meanwhile the risk for the AUD is a rate cut as the economic recovery remains sluggish. Currently markets are indicating a 65% chance of a cut.
Important Information
This communication has been issued and approved for the purpose of section 21 of the Financial Services and Markets Act 2000 by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority (”FCA”).
Stablecoins are digital currencies tied to assets like the U.S. dollar, offering the price stability needed for payments. They maintain their peg by being backed 1:1 by their underlying fiat currency, with issuers holding equivalent amounts in cash and cash equivalents, making stablecoins a digital representation of those reserves. Their market has doubled to over $235 billion, with daily usage nearly doubling in two years.
Why are stablecoins making headlines now?
Due to their clear product-market fit and growing mainstream adoption, stablecoins have become a top priority for regulation, with both industry leaders and policymakers calling for swift action.
On April 4, the Securities and Exchange Commission’s Division of Corporation Finance finally clarified that stablecoins are not securities if backed one-for-one by USD or similar assets and used for payments or value storage. These “Covered Stablecoins” are not marketed as investments, lack profit incentives, and include protections like reserves, making securities law registration unnecessary for issuance or redemption.
The GENIUS Act, introduced in February and advanced by the U.S. Senate Banking Committee in March, marks a major step toward creating a clear legal framework for stablecoin issuance and oversight. This clarity is driving momentum as Fidelity is set to launch its own stablecoin, and Bank of America is preparing to follow it once legislation is finalized.
Globally, the European Union’s Markets in Crypto Assets (MiCA) framework has already come into effect, reinforcing a broader shift toward formal integration of stablecoins into traditional finance. These developments reflect a growing consensus that stablecoins are emerging as essential infrastructure for global payments, treasury management, and digital asset adoption.
What are the benefits of stablecoins?
Stablecoins are digital currencies designed for fast, low-cost, and stable transactions. Since their launch in 2014, they’ve become a go-to tool for online payments, especially cross-border transfers. As they’re pegged to stable assets like the U.S. dollar or euro, they avoid the wild price swings seen in other cryptocurrencies.
They’re accessible to anyone with internet, making them especially valuable in regions with high inflation or limited banking access, like Argentina or Turkey.
With some built on public blockchains, stablecoins offer transparency, letting users track transfers and supply in real time. For institutions, they also simplify treasury management by acting as efficient digital cash that can be deployed instantly.
Who are the major players in the stablecoin race?
Tether (USDT) and Circle (USDC), the two largest stablecoin issuers, collectively hold over $204 billion in U.S. Treasuries, making them the 14th largest holders globally. Their combined treasury holdings surpass those of entire nations, including Norway and Brazil.
USDT leads with $144 billion in circulation; USDC, backed by Coinbase and known for compliance, has become a trusted digital dollar across global finance.
Why stablecoins matter: A revenue engine for blockchains
Stablecoins generate steady revenue for blockchains like Ethereum and Solana by driving transaction fees with each transfer. With trillions in annual volume, they help sustain network activity beyond speculation.
On Ethereum, for example, USDT and USDC transactions are major contributors to daily gas fees. Year to date, Tether ranks #3 and USDC ranks #5 in terms of total gas consumed. Tether and Circle also dominate daily transaction activity on Ethereum, averaging approximately 12 million and 6 million transactions per day, respectively, making them the top two entities on the network by daily transaction count.
Meanwhile, on Solana, stablecoin activity has surged, helping sustain validator rewards and strengthen protocol economics. In addition to the mainstream utility, stablecoins represent reliable, protocol-level cash flow, making them crypto’s killer use case.
Research Newsletter
Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com
Disclaimer
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
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