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...
GBP/USD bounced back from recent losses, trading near 1.3280 during the Asian session on Thursday (5/15). The pair was supported by a weaker US Dollar (USD), as investors weighed the ongoing trade-related uncertainties despite a slight de-escalation in tensions. Market focus now shifts to the release of US Retail Sales and Producer Price Index (PPI) data later in the day. Speculations are growing that Washington may prefer a weaker dollar to strengthen its trade position. The Trump administration has argued that a strong greenback, relative to weaker regional currencies, hurts US...
The US Dollar Index (DXY), which tracks the US Dollar (USD) against a basket of six major currencies, traded lower around 100.90 during the Asian session on Thursday (5/15). The greenback remained under pressure as investors assessed ongoing trade-related uncertainties, despite recent easing of tensions. Speculation has been growing that Washington may prefer a weaker dollar to support its trade agenda. The Trump administration has argued that a strong dollar, compared to weaker regional currencies, has hurt US exporters. Improving global trade sentiment has eased recession fears,...
The Japanese Yen (JPY) traded with a positive bias against its US counterpart for the third straight day on Thursday (May 15) and for now, seems to have stalled the previous day's decline from weekly highs. The Japanese wholesale inflation data released on Wednesday indicated that companies continued to pass on costs to consumers, adding to concerns over a more entrenched price rise in Japan. This is expected to keep the Bank of Japan (BOJ) on track for further interest rate hikes, which in turn, was seen supportive of the JPY. Additionally, a slight deterioration in the global risk...
Gold steadied after falling more than 2% on Wednesday on signs the Federal Reserve will cut interest rates fewer times than previously anticipated, and as easing U.S.-China tensions dampened demand for safe-haven assets. Bullion traded above $3,182 an ounce on Thursday, near its lowest level in more than a month. U.S. Treasury yields rose on expectations the Fed will lower borrowing costs more slowly than expected as the economic outlook improves following a U.S.-China trade truce. Higher yields and interest rates tend to be negative for non-yielding bullion. Continued progress in U.S.-led...
Oil fell for a second day following reports Iran is willing to give up nuclear weapons in a deal with the U.S. in return for sanctions relief. West Texas Intermediate fell to $62 a barrel, after dropping 0.8% on Wednesday, when Brent closed near $66. Iran is ready to sign the deal under certain conditions, NBC reported, citing Ali Shamkhani, a top adviser to the OPEC nation's top leader. Crude fell on Wednesday after government data showed U.S. inventories rose by the most since March, ending a four-day rally that had seen them rise nearly 10%. The gains were driven by a trade truce between...
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...