EUR/USD dives sharply on Thursday as the latest inflation report in the United States (US) caught traders off guard, who were betting on a slim chance of a 50 basis points (bps) Federal Reserve (Fed) rate cut in September. Currently, the pair trades at 1.1638, down 0.57%. The US Bureau of Labor Statistics (BLS) revealed that the Producer Price Index (PPI) in headline and core prints accelerated sharply, mainly influenced by higher tariff levels imposed by the US. Meanwhile, jobs data showed that the number of people filing for unemployment benefits dipped compared to the previous reading,...
The USD/CHF rises during the North American session as recent economic data from the States prompted investors to reduce bets that the Fed would cut rates by 50 bps, as stated by the US Treasury Secretary Scott Bessent on Wednesday. At the time of writing, the pair traded at 0.8077, up 0.26%. On Thursday, Bessent backpedaled and said that it is the Fed's job to set interest rates. Meanwhile, traders who piled in for a big size cut scrambled to get out of those positions as US PPI approached the 3.5% figure. Source; Fxstreet
Gold Price takes a hit and dives over 0.60% on Thursday following a red-hot factory gate inflation report in the United States (US), which prompted investors to price out the chances for a 50-basis-point rate cut at the Federal Reserve's (Fed) upcoming meeting. The XAU/USD trades at $3,334 at the time of writing. The US Producer Price Index's (PPI) July figure from the Bureau of Labor Statistics (BLS) crushed estimates and June's print. Core PPI soared and was shy of touching 4% amid an environment in which the White House demands lower interest rates, saying that tariffs are not...