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 Index (DXY) trended sluggishly around 99.06 on Monday (January 19th), as liquidity thinned as US markets were closed for Martin Luther King Jr. Day. Despite limited movement, global sentiment remained "heavy" after US President Donald Trump threatened tariffs related to the Greenland dispute, sending market participants back into risk-off mode. Trump stated that he would impose 10% tariffs starting February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and the UK, and threatened to escalate to 25% on June 1 if no agreement is reached on...
Gold prices remained near all-time highs on Tuesday, hovering around $4,670 per ounce. Demand for safe haven assets remained strong as US-European trade tensions escalated, prompting investors to refrain from aggressively returning to riskier assets. The latest spotlight comes from Greenland. Reports suggest Denmark is increasing its military presence in the region, while US President Donald Trump has reportedly not ruled out the use of force to strengthen control over the island. This situation has added to market unease as geopolitical risks are increasingly unpredictable. On the trade...
The US dollar weakened at the start of the week after tensions between the United States and the European Union escalated over the Greenland issue. Markets assessed that the political conflict, which has escalated into tariffs, has the potential to disrupt transatlantic trade relations, increasing pressure on the dollar. The US Dollar Index (DXY) fell around 0.25% and moved between 99.10 and 99.15. This weakening occurred as investors began reducing exposure to dollar-based assets and shifting to currencies perceived as safer amid growing geopolitical uncertainty. The main trigger came...
The Australian dollar (AUD) held strong at the start of the week after strong Australian inflation data, while the US dollar weakened as market sentiment grew cautious due to the US-Greenland dispute. This combination kept the AUD/USD pair stable and prevented significant declines. Strengthening in Australia came from the TD-MI Inflation Gauge, which rose to 3.5% YoY in December, from 3.2% previously. On a monthly basis, inflation jumped 1.0% MoM reportedly the fastest pace since December 2023. This data led the market to believe that price pressures in Australia had not yet fully...
Gold and silver hit new records after US President Donald Trump threatened to impose tariffs on eight European countries that oppose his Greenland plan. This situation immediately pushed investors into safe havens, leading to a sharp increase in demand for precious metals. Trump said the initial 10% tariff would take effect on February 1, 2026, and then rise to 25% in June 2026. This threat sparked fears of retaliation from Europe, which could escalate into a full-blown trade war a situation such as this typically increases demand for gold and silver. European leaders are reportedly set to...
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...