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 Japanese Yen (JPY) remained firm against its US counterpart during the Asian session on Wednesday (6/25) and remained close to a one-week high hit the previous day amid a combination of supportive factors. The Bank of Japan (BOJ) June meeting summary showed that some policymakers called for interest rates to be kept steady for the time being due to uncertainty over the impact of US tariffs on the Japanese economy. In addition, the fragile Israel-Iran ceasefire and trade-related uncertainties supported the JPY as a safe-haven asset. Meanwhile, investors appear convinced that the BOJ...
Gold was steady in early Asian trade on the prospect of a Fed rate cut that would boost the appeal of the non-yielding precious metal. Fed Chair Powell told lawmakers on Tuesday that recent economic data would likely justify a rate cut if there were no concerns that higher tariffs could derail policymakers' efforts to combat inflation. Two Fed officials, Christopher Waller and Michelle Bowman, have also recently indicated they could support a rate cut. "Gold prices are resilient on speculation about a U.S. rate cut," Thu Lan Nguyen, head of FX and Commodity Research at Commerzbank, said in...
EUR/USD extended its gains for the fourth straight day, up by 0.39%, even though it trades off the yearly highs of 1.1641, driven by US Dollar weakness spurred by a de-escalation of the Middle East conflict. Israel and Iran agreed to a ceasefire, which improved the market mood and ultimately weighed on the Greenback. At the time of writing, the pair traded at 1.1619, up 0.38%. Market mood turned upbeat, pushing the Dollar down. The US Dollar Index (DXY), which tracks the buck's performance against a basket of six currencies, including the Euro, tumbled over 0.47%, trading near weekly lows...
Oil prices fell 6% on Tuesday to settle at a two-week low, on expectations the ceasefire between Israel and Iran will reduce the risk of oil supply disruptions in the Middle East. The ceasefire was on shaky ground with U.S. President Donald Trump accusing both Israel and Iran of violating it just hours after it was announced. Brent crude futures fell $4.34, or 6.1%, to settle at $67.14 a barrel. U.S. West Texas Intermediate (WTI) crude fell $4.14, or 6.0%, to settle at $64.37. Settlement was the lowest for Brent since June 10 and WTI since June 5, both before Israel launched a surprise...
The Australian Dollar (AUD) continues to strengthen against the United States Dollar (USD) on Tuesday as traders react to signs of easing geopolitical tensions. Reports confirming a ceasefire between Israel and Iran have helped calm market nerves, prompting a shift back into risk-sensitive assets. At the time of writing, AUD/USD is trading above the 0.6500 handle, buoyed by fading demand for traditional safe-haven assets, such as the US Dollar. In Washington, Federal Reserve (Fed) Chair Jerome Powell began his two-day testimony before Congress. His tone remained broadly consistent with...
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...