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...
The EUR/USD pair surged on Monday (July 22nd), gaining more than 0.50%, as the US dollar weakened, pressured by falling US Treasury yields and trade uncertainty ahead of the August 1st deadline. This triggered an outflow of the greenback, as the pair traded at 1.1694 after bouncing from a daily low of 1.1614. The market mood was upbeat as investors awaited earnings reports from two megacap companies in the United States. Trade tensions between the European Union (EU) and the US have escalated as EU diplomats explore a broader range of retaliatory measures against the US, as the chances of...
The US dollar (USD) started the week weaker, weakening against other major currencies in trading on Monday (July 22). Investors reacted to renewed trade tensions ahead of the August 1 deadline and generally cautious market sentiment. Although US economic data has been largely solid of late, the greenback is feeling pressure from continued uncertainty surrounding the Trump administration's escalating tariff threats and growing political pressure on the Federal Reserve (Fed) to cut interest rates. Concerns over the Fed's independence intensified after Representative Anna Paulina Luna...
Oil prices weakened slightly on Monday as the latest European sanctions on Russian oil are expected to have a minimal impact on supply, but losses were offset by investors weighing the potential for a reduction in diesel supplies. Brent crude futures fell 7 cents, or 0.1%, to $69.21 a barrel. U.S. West Texas Intermediate crude fell 14 cents, or 0.2%, to $67.20. The European Union on Friday approved its 18th package of sanctions against Russia over its war in Ukraine, which also targets India's Nayara Energy, an exporter of refined Russian crude. "The market currently believes that supply...
Gold prices surged more than 1% on Monday (July 21st) as the US dollar and US Treasury yields fell sharply amid uncertainty over a trade deal, amidst overall risk sentiment in the market. At the time of writing, XAU/USD was trading at $3,397 after bouncing off a daily low of $3,338. Risk appetite improved as traders awaited the release of US financial reports. Meanwhile, the August 1st deadline for tariffs imposed by the White House is approaching, making investors uneasy about the trade deal between the US and its three major trading partners, including the European Union (EU), Canada, and...
Gold rose to its highest level in more than a month as traders assessed the impact of tariffs on inflation and interest rates in the absence of relevant economic data. The dollar and bond yields weakened on Monday, pushing bullion prices up as much as 1.5%. Bullion typically benefits when the US dollar weakens and in a lower interest rate environment. Macro funds have begun buying back their previously established short positions in gold, according to TD Securities. Bullion is set to see further gains, driven by catalysts including trade wars, continued interest rate cuts, a stagflationary...
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...