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 remained largely unchanged around 157 per dollar on Thursday, amid thin trading volumes as Japan observed the holiday season. Investors continued to digest the Bank of Japan's interest rate outlook, following an uptick in both headline and core inflation in November. Minutes from the BoJ's December meeting revealed that policymakers had debated the possibility of a near-term rate hike, with some members suggesting that conditions were starting to align for such a move. Meanwhile, traders are keeping a close eye on potential Japanese government intervention, after Finance...
Gold prices inched higher on Thursday, continuing its momentum from 2024, while traders sought more clarity on the U.S. Federal Reserve's interest rate trajectory and President-elect Donald Trump's policies. Spot gold rose 0.39% to $2,634.15 per ounce, as of 0255 GMT. U.S. gold futures edged up 0.2% to $2,646.30. Bullion surged over 27% in 2024, its largest annual gain since 2010, driven by Fed's substantial rate cuts and escalating geopolitical tensions. The dollar index (.DXY), opens new tab slipped 0.1%, making dollar-priced bullion more affordable for holders of other...
The dollar index slipped to around 108.3 on Thursday, starting the year on a subdued note following a strong performance in 2024. Last year, the dollar strengthened by approximately 7% against a basket of major currencies, as the Federal Reserve signaled a more cautious stance on interest rate cuts amid ongoing inflationary pressures. The dollar also received a boost from Trump's imminent return to the White House, with his proposed policies—such as deregulation, tax cuts, higher tariffs, and stricter immigration measures—seen as pro-growth and inflationary. Additionally, concerns over...
WTI crude oil futures rose above $72 per barrel on Thursday, the first session after the New Year holiday, following an industry report indicating lower US crude inventories. API data showed a 1.4-million-barrel decline in US crude stocks for the week ending December 27th. If confirmed by official data today, it would mark a third consecutive weekly draw. Investors are also eyeing a recovery in China's economy and fuel demand after President Xi Jinping's pledge last Tuesday to implement more proactive policies to promote growth. This comes after an official survey suggested that policy...
The AUD/USD pair trades on a flat note around 0.6185 during the early Asian session on Thursday. However, the expectation that the US Federal Reserve (Fed) will take a slow and cautious approach to further rate cuts this year might boost the US Dollar (USD) and acts as a headwind for AUD/USD. In the final monetary policy meeting on December 18, the Fed indicated that it would only reduce interest rates two times next year, down from four rate cuts in September's updated economic projections. The rising bets that the US central bank will hold interest rates higher than peers lift the...
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...