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 is retracing some of the steep losses it suffered earlier this week, after bond yields plunged on weak U.S. economic data that raised bets on further Federal Reserve interest rate cuts. Bullion edged up to trade near $3,245 an ounce, following a 2% gain on Thursday boosted by a report showing U.S. producer prices unexpectedly fell by the most in five years, while separate data showed retail sales barely rose. Treasury yields fell on signs of waning economic activity and fading inflation, raising expectations for monetary easing. Lower borrowing costs and yields tend to benefit...
EUR/USD whipsawed on Thursday, briefly dipping back below the 50-day Exponential Moving Average (EMA) and tapping the 1.1000 level for the second time in a week. A late recovery pushed Fiber bids back to where they started the trading day, near the 1.1200 handle. Pan-European Gross Domestic Product (GDP) figures for the first quarter ticked slightly lower on the near end of the curve, dipping to 0.3% QoQ. Annualized GDP still held steady at 1.2% YoY, but a soft patch in the Q1 data is still giving Fiber traders a reason to pause. In the US, the Producer Price Index (PPI) inflation decreased...
AUD/USD came under further downside pressure on Thursday, adding to Wednesday's retracement and briefly dipping below the key support at 0.6400 the figure. The pair's pullback came despite decent losses in the Greenback and firmer Australian labour market report. AUD/USD slipped under renewed selling pressure despite a continued softening in the US Dollar (USD) on Thursday. The Australian Dollar (AUD) continued to fade part of Tuesday's sharp rebound, this time retreating below its critical 200-day Simple Moving Average (SMA) near 0.6460. Traders appear increasingly focused on the...
Oil prices settled lower on Thursday on expectations for a U.S.-Iran nuclear deal that could result in sanctions being eased and more barrels released onto the global market. Brent crude futures settled down $1.56, or 2.36%, to $64.53 a barrel. U.S. West Texas Intermediate crude futures settled down $1.53, or 2.42%, to $61.62. U.S. President Donald Trump said on Thursday that the U.S. was getting close to securing a nuclear deal with Iran, and Tehran had "sort of" agreed to the terms. An Iranian official told NBC News in an interview published on Wednesday that Iran was willing to agree...
Gold price rallied sharply on Thursday after hitting a weekly low of $3,120, posting solid gains of over 1.40%, boosted by broad US Dollar weakness due to a nifty Producer Price Index (PPI) report in the United States (US). This, along with falling US bond yields, keeps XAU/USD trading at $3,228 at the time of writing. The yellow metal began to rise in anticipation of US PPI data, which in April came surprisingly below estimates and March's data. At the same time, Retail Sales for the same period slowed as households front-loaded motor vehicle purchases, and job data revealed by the US...
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...