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...
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...
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...