Stephen Miran, a Federal Reserve governor whose term ends at the end of January, said Thursday that he is looking for 150 basis points of interest-rate cuts this year to boost the U.S. labor market. Miran told Bloomberg Television's Surveillance program that Fed officials had room to further reduce rates given his view that underlying inflation was likely running at 2.3%. "I'm looking for about a point and a half of cuts. A lot of that is driven by my view of inflation," Miran said. "Underlying inflation is running within noise of our target, and that's a good indication of where overall...
Silver prices (XAG/USD) traded slightly after rising in the previous two sessions, trading around $37.50 per troy ounce during the Asian session on Tuesday (August 5). This non-yielding silver could attract buyers amid growing expectations of a rate cut by the US Federal Reserve (Fed) in September. According to the CME FedWatch Tool, the market is pricing in a 91.6% chance of a Fed rate cut next month, driven by weaker labor market data that has raised concerns about the US economic outlook. Federal Reserve Bank of San Francisco President Mary C. Daly said Monday evening that while there...
The US Dollar Index (DXY), a measure of the value of the US dollar (USD) against a basket of six global currencies, traded negative around 98.70 at the start of Tuesday's Asian trading session. Traders await the release of the US ISM Services Purchasing Managers' Index (PMI) on Tuesday for further impetus. US Nonfarm Payrolls (NFP) rose by 73,000 in July, compared to a 14,000 increase (revised from 147,000) previously, according to the US Bureau of Labor Statistics (BLS) on Friday. This figure was below the market consensus of 110,000. Meanwhile, the US Unemployment Rate edged up to 4.2% in...
West Texas Intermediate (WTI), the US crude oil benchmark, traded around $65.65 at the start of the Asian trading session on Tuesday (August 5). WTI traded slightly lower after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to another significant production increase in September. OPEC+ met virtually on Sunday and agreed to increase oil production by 547,000 barrels per day (bps) for September amid growing concerns over potential supply disruptions related to Russia. The group began increasing production in April with a modest increase of 138,000 bpd,...
Gold edged higher early in the Asian session, boosted by growing expectations of a US interest rate cut next month. However, "without a clear shift in dovishness from the Fed, which has yet to materialize, we expect the precious metal to trade within a price range," Sucden Financial said in its daily note. Lower interest rates reduce the opportunity cost of holding gold, which does not pay interest or dividends. Spot gold rose 0.1% to $3,378.35/oz. Spot silver was unchanged at $37.40/oz. Source: Dow Jones Newswires
The EUR/USD stagnates during Monday's session, virtually unchanged, after Friday's rally of over 1.52% following a worse-than-expected Nonfarm Payrolls report, which triggered a ramp-up of expectations for a Federal Reserve rate cut at the September meeting. The pair trades near Friday's closing price. The Euro failed to rally, even though some developments pressured the US Dollar. The latest employment report witnessed a revision of the May and June figures, which were sharply revised downward , triggering the firing of the US Bureau of Labor Statistics (BLS) head. That data, along with a...
Bank of Japan (BOJ) Governor Kazuo Ueda stated that achieving 2% inflation is getting closer, although real inflation remains low. Ueda emphasized that the BOJ will continue to raise interest rates...
The Reserve Bank of Australia (RBA) maintained its cash rate at 4.1% during its April meeting, holding borrowing costs unchanged after slashing 25 bps in the February meeting, aligning with market...