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 held steady early in the Asian session after the PPI data fell 0.1% in August, reinforcing expectations that the Fed would cut interest rates next week. The Dollar Index edged up to 97.822, marking a third consecutive day of gains. The market now awaits the release of the US CPI later tonight (WIB) for confirmation of its next direction. Market participants consider a 25 bps cut at the September 16-17 meeting almost certain. The chance of a 50 bps cut is only around 8%. Analysts' comments suggest the "benign" PPI result is in line with market pricing, shifting focus to the CPI...
Gold held steady just below its record, around $3,645/oz, after an unexpected decline in US producer prices (PPI) fueled hopes of Fed policy easing. The market now awaits the release of US CPI data Thursday evening (WIB) for confirmation of the next direction. Current market expectations price a 25 bps price cut at the Fed's September 16-17 meeting as the main scenario, with a larger cut seen as less likely. Gold's sensitivity is high: cooler inflation data typically weakens the dollar/yields and supports bullion prices. Performance-wise, gold has gained ~38–39% through 2025, driven by...
GBP/USD tested the 1.3550 area again for the fourth consecutive day on Wednesday, but has so far been unable to break higher. The market is likely to remain cautious ahead of the release of US consumer inflation (CPI) data on Thursday, which could be the next driver for the dollar and pound. On the producer side, US PPI inflation cooled faster than expected in August. Core PPI fell to 2.8% YoY from 3.5% previously, boosting market expectations that the Fed will cut interest rates on September 17. The PPI reflects domestic price pressures because it excludes imported goods. However, price...
Global oil prices stabilized after three consecutive days of gains. The market weighed US President Donald Trump's latest comments on Russia and the possibility of punitive measures for the war in Ukraine. Trump's tweet questioning the Polish airspace violation incident triggered a brief price spike due to the closing of short positions. West Texas Intermediate (WTI) prices hovered around $64 per barrel on Thursday, after rising 1.7% in the previous session. Brent held above $67 per barrel, indicating continued positive sentiment despite market caution. Trump also told European Union...
Gold price surges on Wednesday, up by over 0.60%, folllowing US inflation data, which increased speculation that the Federal Reserve (Fed) will resume its easing cycle at the upcoming September meeting. At the time of writing, XAU/USD trades at $3,646, shy of the record high of $3,674. Bullion up 0.60% fueled by Fed cut bets, Middle East tensions and Russian drone incursion into Poland's airspace The Producer Price Index (PPI) in August revealed that the disinflation process resumed in August, as businesses seem to absorb some of the US President Donald Trump's tariffs, in exchange for...
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...