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 gains some positive traction following an Asian session downtick. Bets for more interest rate hikes by the BoJ continue to act as a tailwind for the JPY.The divergent BoJ-Fed expectations contribute to capping the upside for USD/JPY.The Japanese Yen (JPY) attracts some buyers following an Asian session dip against its American counterpart and reverses a part of the previous day's slide amid hawkish BoJ expectations. Investors now seem convinced that the Bank of Japan (BoJ) will hike interest rates further amid signs of broadening inflationary pressures in Japan, which led to...
Australian Dollar appreciates despite fresh tariff threats from US President Donald Trump.Australia's Wage Price Index increased by 0.7% QoQ in Q4 2024, missing the expected 0.8% rise.The US Dollar loses ground as Treasury yields depreciate despite hawkish Fedspeak.The Australian Dollar (AUD) recovers its daily losses against the US Dollar (USD) on Wednesday. However, the AUD/USD pair faced challenges amid rising risk aversion following new tariff threats from US President Donald Trump.Australia's Wage Price Index increased by 0.7% quarter-over-quarter in Q4 2024, falling short of the...
The dollar index maintained its recent gains, holding around 107 on Wednesday, as President Donald Trump's escalating tariff threats fueled inflation concerns. On Tuesday, Trump announced plans to impose auto tariffs of around 25%, as well as similar duties on semiconductors and pharmaceutical imports. Geopolitical tensions also supported the dollar, particularly after the US excluded European nations from peace negotiations with Russia over the ongoing war in Ukraine. On the monetary policy front, Federal Reserve officials reaffirmed their cautious approach to further interest rate cuts,...
Gold edges lower in early Asian trade as traders weigh continued signs of strength in the U.S. economy against policy uncertainties that have fueled a surge in demand for the haven metal. "Trump's policies have proven to create an environment of strength," says Raddington Group CEO Yassin K. Fawaz. With inflation still above the Fed's target and the economy on solid footing, many now think interest rates will stay high for a while, dampening the appeal of non-interest-bearing assets like gold, he says. That said, Trump's approach to international relations and tough stance on trade is also...
The euro is set to end Tuesday's session (2/18) with a loss of more than 0.30% against the greenback as the S&P 500 hit a record high during the North American session. At the time of writing, EUR/USD is trading at 1.0445 below its opening price. Risk appetite has improved, but US President Donald Trump reiterated that he will impose a 25% tariff on imported cars. He added that he will announce major companies that will return to the United States, related to chips and cars. EUR/USD has recovered over the past few weeks amid progress in peace talks related to the Ukraine-Russia...
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...