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 US dollar strengthened slightly and US Treasury bonds pared earlier gains after disappointing US jobs data proved insufficient to convince the market that the Fed would soon cut interest rates again. The dollar strengthened against G10 currencies, most notably against the yen, while the yield on the 10-year US Treasury note rose to around 4.17%. In commodity markets, the movement was much more violent. Oil prices rose about 1.3% after President Donald Trump ordered a blockade of tankers entering and leaving Venezuela, sparking supply concerns from the OPEC member. At the same time,...
The Japanese yen weakened slightly during the Asian session on Wednesday, as investors remained cautious while awaiting the Bank of Japan (BoJ) policy update. Market focus now turns to the two-day BoJ meeting next Friday, which is expected to provide clues regarding the interest rate path through 2026. Expectations for a BoJ interest rate hike this week are believed to be a supportive factor for the JPY. Investors anticipate a hawkish BoJ stance could boost the yen or at least prevent further depreciation, although more cautious market sentiment has limited the currency's...
The EUR/USD pair moved steadily around 1.1750 during Wednesday's Asian session. Its movement appeared to be holding up after a sharp drop the previous day from its highest level since September 24th. Despite the correction, the overall direction of EUR/USD remains bullish. Market sentiment suggests that selling pressure on the dollar is weakening, giving the euro room to hold its ground. From the US side, the dollar's recovery following the release of the Nonfarm Payrolls (NFP) data is starting to run out of steam. The mixed labor data hasn't been strong enough to change market confidence...
Silver prices moved steadily with a downward trend as investors weighed weak US employment data. The data was not strong enough to fuel speculation of further interest rate cuts by the Federal Reserve, so buying interest in the precious metal remained limited. The lower number of US jobs added and the rising unemployment rate indicate the labor market is starting to slow. However, market participants believe the Fed will be cautious in responding to this data due to the disruption caused by the government shutdown. This situation means that silver, like gold, has not yet received a strong...
Oil prices held steady after closing at their lowest level since 2021 on Tuesday. Pressure stemmed from increasingly clear signs of oversupply in the global market, keeping market participants cautious. West Texas Intermediate (WTI) crude oil traded near US$55 per barrel after plunging nearly 6% in the last four sessions. Meanwhile, Brent was just below US$59 per barrel. Weakness was seen across various regions, from the Middle East to the United States, as the International Energy Agency projected the largest surge in oversupply since the pandemic. This oversupply was fueled by OPEC+'s...
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...