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 prices edged higher in Asian trade on Wednesday as political turmoil in South Korea spurred safe-haven demand, although anticipation of further cues on U.S. interest rates kept traders on hold. The yellow metal has seen some relief this week as concerns over a collapse of the Israel-Hezbollah ceasefire also spurred safe-haven demand. However, gold's gains were largely capped by a surge in the dollar, as the greenback surged on uncertainty over the long-term outlook for U.S. interest rates. Spot gold rose 0.1% to $2,646.53 an ounce, while February gold futures rose 0.1% to $2,668.60 an...
The dollar index held steady around 106.4 on Wednesday as investors continued to assess the direction of the Federal Reserve's monetary policy. Data released Tuesday showed a modest increase in U.S. job openings in October, while layoffs declined, indicating worker confidence in the labor market. Traders are now focusing on the ADP private payrolls report on Wednesday and nonfarm payrolls data due Friday for further insight into labor market trends. Federal Reserve Chairman Jerome Powell is also scheduled to speak in New York on Wednesday afternoon. Currently, markets are pricing in about...
Oil prices were steady in Asian trade on Wednesday after rising sharply in the previous session as Israel threatened to strike Lebanon if a ceasefire with Hezbollah fails. However, oil's momentum was halted by industry data showing an unexpected increase in US crude inventories. Sentiment also remained largely uneasy ahead of an OPEC+ meeting on Thursday, where the cartel is widely expected to delay plans to increase output. Still, oil retained some risk premium as Israel and Hezbollah repeatedly violated a recently announced ceasefire. Rising tensions between Russia and Ukraine also kept...
Gold held above $2,640 an ounce on Wednesday as markets continued to assess the political and monetary outlook, while closely monitoring key economic data releases. A recent report showed that U.S. job openings were higher than expected, indicating continued resilience in the labor market. Investors now look ahead to Friday's anticipated nonfarm payrolls report, along with additional speeches from several Fed officials to gauge the central bank's potential policy moves this month. The odds for a 25bps rate cut in the federal funds rate currently stand at 73%, which benefits gold by...
The Australian dollar (AUD) moved lower in response to weak domestic Gross Domestic Product (GDP) growth figures. Given that headline inflation in Australia has eased to the central bank's target range of 2%-3%, slower growth could put pressure on the Reserve Bank of Australia (RBA) to respond with lower interest rates. Furthermore, fresh US export curbs on China, concerns about China's fragile economic recovery, and tariffs to be imposed by US President-elect Donald Trump turned out to be other factors weighing on the China-proxy Australian currency. On the other hand, the US dollar (USD)...
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...