The US dollar index fluctuated around 98.4 on Friday (December 19) and is expected to close the week relatively unchanged. Investors are still weighing the chances of a Federal Reserve interest rate cut next year, as inflation continues to decline and signs of weakness in the US labor market emerge. The latest inflation data indicates price pressures are easing. The November CPI report showed headline inflation fell to 2.7%, the lowest since July and below market expectations. Core inflation also weakened to 2.6%, the slowest pace since early 2021. Meanwhile, the unemployment rate rose to...
The Fed may or may not actually cut interest rates in September. The deciding factor will be how robust macroeconomic data (namely, inflation and the labor market) looks at that time. That's why all eyes will likely be on today's US labor market report for July. Certainly, there are signs of weakness in some areas of the US labor market, particularly in cyclical sectors like manufacturing and business services. While the June report shows a fairly good figure (+147,000), a closer look reveals mixed results. However, there are no signs of a slowdown, notes Commerzbank FX analyst Antje...
The U.S. will levy a 30% tariff on South African exports next week, after Pretoria failed to reach a trade deal before President Donald Trump's deadline. The new rate is part of a broader executive order signed Thursday, imposing tariffs ranging from 10% to 41% on dozens of countries to reshape global trade in favor of the U.S. Despite months of negotiations and an offer to buy U.S. LNG and invest $3.3 billion in American industries, South Africa's efforts fell short. Trade Minister Parks Tau warned the tariff threatens key export sectors like automotive, agro-processing, steel, and...
U.S. President Donald Trump has imposed a 19% tariff on exports from Malaysia to the U.S., lower than the 25% rate he initially threatened in July. The rate was finalized in an executive order signed on July 31, just ahead of the August 1 deadline Trump set for countries to reach trade agreements with his administration. According to Malaysia's trade ministry, the revised tariff was achieved without compromising the country's sovereign rights, as it held firm on several key "red line" issues. The ministry described the outcome as a "significant achievement" resulting from sustained...
U.S. President Donald Trump on Thursday signed an executive order increasing tariffs on Canadian goods to 35% from 25% on all products not covered by the U.S.-Mexico-Canada trade agreement, the White House said. Goods transshipped to another country to evade the new tariffs would be subject to a transshipment levy of 40%, according to a White House fact sheet. The move - which Washington linked in part to what it said was Canada's failure to stop fentanyl smuggling - is the latest blow in a months-long tariff war which Trump initiated shortly after taking power. The announcement blaming...
President Donald Trump on Thursday evening signed an order outlining tariff levels against a host of countries, which will take effect in seven days. Trump released an updated list of his proposed "reciprocal" tariffs against U.S. trading partners, with the list coming just hours before an August 1 deadline set by the president. The list included the tariff rates set under recent trade deals between Washington and the targeted countries, such as a 10% tariff on the UK, and a 15% tariff on Japan, South Korea, and some goods from the European Union. India will face a 25% levy, as outlined...
U.S. President Donald Trump said on Wednesday that Canadian Prime Minister Mark Carney reached out ahead of an August 1 tariff deadline, but no conversations between the two took place. Trump has warned that any country that does not strike a deal with the U.S. before Friday will be subjected to higher tariffs imposed on goods, which for Canada could mean a 35% rate on all products not covered by the U.S.-Mexico-Canada trade agreement. "We haven't spoken to Canada today. He's (Carney) called and we'll, we'll see," Trump told reporters during an event at the White House. Carney's office...
After speaking to Mexican President Claudia Sheinbaum on the phone on Thursday, United States (US) President Donald Trump said that Mexico will continue to pay a 25% fentanyl tariff, 25% tariff on cars, and 50% tariff on steel, aluminum, and copper. "Mexico has agreed to immediately terminate its non tariff trade barriers," Trump noted and added that they will talk to Mexico over the next 90 days with the goal of signing a trade deal, confirming an extension of the current agreement. Source: Fxstreet
Annual inflation in the United States (US), as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, rose to 2.6% in June from 2.4% in May (revised from 2.3%), the US Bureau of Economic Analysis reported on Thursday. This figure was above market expectations of 2.5%. The core PCE Price Index, which excludes volatile food and energy prices, rose 2.8% in the same period, matching May's increase and exceeding analysts' expectations of 2.7%. The PCE Price Index and the core PCE Price Index both rose 0.3% on a monthly basis. Other details from the report showed that...
Gold rises in the early Asian trade. There's a broad commodities uptrend, driven by macro uncertainty, a weaker dollar, and persistent demand for "hard" assets, says Fawad Razaqzada, market analyst...
Oil extended declines after OPEC+ agreed to a bigger-than-expected production increase next month, raising concerns about oversupply just as US tariffs fan fears about the demand outlook.
Brent...
The Japanese Yen (JPY) weakened against its US counterpart and reversed part of Friday's recovery from the lowest level since July 23 following Bank of Japan (BOJ) Governor Kazuo Ueda's remarks....