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...
Pound Sterling (GBP) gained modestly against the dollar but underperformed the euro as stagnant productivity, soft labor demand, and sticky wage growth underscore the UK's stagflation risk, BBH FX analysts report. Sterling lags euro amid soft UK labor backdrop"GBP/USD edged higher on broad US Dollar (USD) weakness. Pound Sterling (GBP) is underperforming against EUR. The UK July labor market data matched consensus." "The unemployment rate was unchanged for a third straight month at a four-year of 4.7% in July (BOE Q3 projection: 4.8%). Worrisomely, the vacancies-to-unemployment ratio...
EUR/USD remains near the upper end of its three-month trading range, with another test of 1.18 possible today. Despite a recent spike, implied volatility has retreated, underscoring calmer market conditions, Commerzbank's FX analyst Michael Pfister notes. EUR/USD seems to be struggling to break above 1.18"Last week, I discussed the possible factors that could push EUR/USD back above 1.18 in detail here. However, the fact that it feels like we have been trading within a fairly narrow range for the last three months must also be put into perspective. While it is true that EUR/USD seems to be...
Silver steadied around $42.5 per ounce on Tuesday, hovering near 14-year highs as investors positioned for an expected US Federal Reserve rate cut this week. Markets are nearly fully pricing in a 25 basis point reduction on Wednesday, with 67 bps of easing projected by year-end. Expectations have been bolstered by data showing a cooling labor market and subdued inflation. President Donald Trump also pressed Fed Chair Jerome Powell for a larger cut, citing housing market weakness. Elsewhere, central banks in Canada and China are expected to ease policy this week, while those in Japan and the...
The dollar traded near a 2.5-month low against the euro and near a 10-month low against the risk-sensitive Australian dollar on Tuesday as investors increased bets for a Fed rate cut this week and next. The U.S. dollar traded slightly below its lowest level in more than two months against the British pound, with U.S. President Donald Trump renewing his call for aggressive monetary easing. Markets are pricing in a rate cut of at least 25 basis points on Wednesday as a certainty, with a 50 basis point cut even more likely. A total of 67 basis points of cuts are expected over the remainder of...
Oil prices are mixed in the early Asian trade, but may be supported by supply-disruption risks. Ukraine has stepped up attacks on Russia's energy infrastructure, ANZ Research analysts say in a research report. Another drone attack struck Russia's Kinef refinery, which has an annual processing capacity of over 20 million tons, the analysts note. "This follows last week's wave of attacks which Ukraine claimed have struck facilities handling almost half of Russia's seaborne crude exports," the analysts add. Front-month WTI crude oil futures are little changed at $63.32/bbl; front-month Brent...
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...