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...
Gold rose to a near two-month high on Monday, as escalating clashes between Israel and Iran over the weekend stoked fears of a wider regional conflict, prompting investors to turn to safe-haven assets. Spot gold was little changed at $3,428.89 an ounce, at 0508 GMT, after hitting its highest since April 22 earlier in the session. U.S. gold futures fell 0.1% to $3,448.10. "The compounding political risk premium that has risen due to the current Iran-Israel conflict has boosted safe-haven demand for gold," said Kelvin Wong, senior market analyst, Asia Pacific at OANDA. "Currently, prices...
The USD/CHF pair strengthened around 0.8125 during the early European session on Monday (6/16), supported by a rebound in the US dollar (USD). Investors await the Swiss May Producer and Import Prices and SECO Economic Forecast, due to be published on Monday. Friday's stronger-than-expected US economic data lifted the greenback against the Swiss franc (CHF). The University of Michigan Consumer Sentiment Index improved to 60.5 in June, compared to 52.2 in the previous reading. The reading was stronger than the expected reading of 53.5. Meanwhile, the US Dollar Index (DXY), a gauge of the...
Oil prices were volatile on Monday, after jumping 7% on Friday, as fresh attacks by Israel and Iran over the weekend raised concerns that fighting could spread across the region and significantly disrupt oil exports from the Middle East. Brent crude futures rose 64 cents, or 0.86%, to $74.87 a barrel by 0507 GMT, while U.S. West Texas Intermediate crude rose 76 cents, or 1.04%, to $73.74. Oil prices had jumped more than $4 a barrel earlier in the session and also briefly dipped into negative territory. Both benchmarks closed 7% higher on Friday, after jumping more than 13% during the...
Silver (XAG/USD) prices moved lower to around $36.20 during Asian trading hours on Monday (6/16). The recovery in the greenback weighed on the USD-denominated commodity. However, the downside potential seems limited amid rising geopolitical tensions in the Middle East. Upbeat US economic data released on Friday could provide some support to the US Dollar (USD). The University of Michigan Consumer Sentiment Index improved for the first time in six months, with the index rising to 60.5 in June from 52.2 in the previous reading. This reading was above the market estimate of 53.5. On the other...
The Japanese Yen (JPY) weakened for the second straight day on Monday (6/16), pushing the USD/JPY pair to the 144.75 area during the Asian session, albeit without any follow-through. Expectations that the Bank of Japan (BoJ) may not raise interest rates again this year, along with a generally positive tone around equity markets, undermined the safe-haven JPY. However, investors seemed confident that the central bank will stick to its path towards policy normalization amid broadening inflation. This, along with rising geopolitical tensions in the Middle East, should help limit any deeper...
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...