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...
During remarks delivered to the press during his weekly Executive Order signing, US President Donald Trump added further, though not always clear, tariff comments to his social media posts earlier Friday. Key highlights We're talking about big factories. Technology has come a long way in terms of safety and cost. We need a tremendous amount of electricity. Talks with the EU are going slowly. (On his threat of new 50% tariffs on the EU): I'm not looking for a deal, the tariffs are set at 50%. I can talk about delaying the EU tariffs if they start moving factories to the US. We have a...
US Treasury bonds appear to have taken some comfort today from the Supreme Court ruling that the Fed's unique structure can protect its board members from potential presidential removal, Rabobank FX analyst Jane Foley reports. Closing of USD shorts for 1 to 3 months cannot be ruled out "This would ease any potential credibility issues for the Fed which would dampen inflation concerns, at least until the end of Chairman Powell's term. Nonetheless, the USD weakness this week suggests that investors continue to re-evaluate what ‘US exceptionalism' means. For a number of years, the ‘buy...
U.S. President Donald Trump threatened once again on Friday to ramp up his trade war, recommending a 50% tariff on European Union goods starting June 1 and warning Apple (AAPL.O), opens new tab he may impose a 25% tariff on any iPhones manufactured outside the U.S. The twin threats, delivered via social media, roiled global markets after weeks of de-escalation had provided some reprieve. The S&P 500 fell 0.9% in early trading, the Nasdaq fell 1.5%, and European shares fell 1.1%. Trump's latest broadside against the EU stemmed from his frustration at the lack of progress in trade talks...
The United Kingdom (UK) Retail Sales jumped 1.2% month-over-month (MoM) in April after advancing 0.1% in March (revised from 0.4%), the latest data published by the Office for National Statistics (ONS) showed Friday. Markets expected a 0.2% rise in the reported month. The core Retail Sales, stripping the auto motor fuel sales, rose 1.3% MoM, compared to the previous revised growth of 0.2% and the estimated 0.3% reading. The annual Retail Sales in the UK climbed 5.0% in April versus March's 1.9%, while the core Retail Sales also grew 5.3% in the same month versus 2.6% previous revision....
Beijing and Washington maintained high-level contact with a call on Thursday between U.S. Deputy Secretary of State Christopher Landau and China's Executive Vice Foreign Minister Ma Zhaoxu, signaling ongoing communication following their recent trade truce. According to the U.S. State Department, the two officials "discussed a wide range of issues of mutual interest" and "exchanged thoughts on crucial issues," though no specifics were provided. Both sides underscored the importance of the bilateral relationship and agreed to keep lines of communication open. The call comes amid renewed...
Britain's consumers turned a bit more confident in May, according to a survey published on Friday that might reflect the impact of falling interest rates and an easing of global trade tensions. Market research firm GfK's consumer confidence index rose to -20 in May from -23 in April, led by more optimism among households over the outlook for their finances and the wider economy. A Reuters poll of economists had pointed to a smaller increase to -22. Neil Bellamy, consumer insights director at GfK, said consumers may have breathed a sigh of relief from the Bank of England's May 8 interest...
US Treasury yields fell on Thursday (5/23) after the 30-year US bond yield hit a 19-month high amid concerns about a widening US fiscal deficit, as Trump's "One Big Beautiful Bill" passed the US House and heads to the Senate. Longer-term Treasury yields fell as Trump's tax-heavy budget passed the House, pushing fiscal concerns to the forefront The US House of Representatives approved Trump's budget by a single vote on Thursday. The proposal, which would provide tax breaks on tips and loans on cars – made in the US – is expected to increase the deficit by $3.8 billion, according to the...
The S&P Global US Services PMI rose to 52.3 in May of 2025 from the 17-month low of 50.8 in the previous month, ahead of market expectations of 50.8, according to a flash estimate. Businesses received higher amount of new orders in the period despite the aggressive drop in orders from foreign markets, which was the sharpest on record when excluding the pandemic, indicating that tariffs and unpredictable economic policy by the government continued to impact businesses. The uncertainty and softer demand for capacity drove service providers to trim their employment levels for the second...
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....