After a nine-month pause, the US Federal Reserve is expected to resume its cycle of interest rate cuts this week. The big question is how far will it go? US President Trump has already made it clear that he wants to see cuts to a key interest rate of around 1% (from the current 4.25-4.50%), and probably as quickly as possible. Given the risk of stagflation in the wake of US tariffs, such a sharp easing of monetary policy would be disastrous for the US Dollar (USD), Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes. Trump wants the Fed to help the Treasury finance the...
The dollar firmed slightly on Tuesday, though most currencies held tight ranges as investors remained concerned about ongoing tensions in the Middle East and awaited an upcoming central bank decision. The Bank of Japan concludes its two-day monetary policy meeting on Tuesday, where it is widely expected to keep interest rates steady and consider tapering bond purchases slowly starting next fiscal year. Ahead of the outcome, the yen firmed slightly to 144.70 per dollar, reversing some of its decline from the previous session. "Markets are now refocusing their attention on the usual...
Gold edged up in early Asian trading amid ongoing geopolitical tensions that typically boost the precious metal's appeal as a safe haven. Israel attacked buildings belonging to Iran's state-owned media company in Tehran. The attacks came despite Tehran sending a message through intermediaries calling for a return to nuclear talks if the U.S. stays out of the conflict. "The geopolitical backdrop remains highly volatile," Fawad Razaqzada, market analyst at City Index and FOREX.com, said in an email. "The Israeli attack on Iran has injected a clear risk premium across commodities," the...
Oil prices slipped $1 per barrel on Monday in volatile trading after reports that Iran is seeking an end to hostilities with Israel, raising the possibility of a truce and easing fears of a disruption to crude supplies from the region. Brent crude futures settled $1, or 1.35%, lower to $73.23 a barrel. U.S. West Texas Intermediate crude futures fell $1.21, or 1.66%, to $71.77 per barrel. Iran has asked Qatar, Saudi Arabia and Oman to press U.S. President Donald Trump to use his influence on Israel for an immediate ceasefire in return for Tehran's flexibility in talks about its nuclear...
The Swiss Franc (CHF) is holding steady against the US Dollar (USD) on Monday, even as the US Dollar Index (DXY) slips back below 98.00, with traders brace for a relatively calm start to a week full of central bank decisions and the context of an escalating war between Israel and Iran.. The USD/CHF pair is hovering around 0.8106 during the European session, holding within a narrow range between 0.8100 and 0.8130 after bouncing back from Friday's dip to a two-month low near 0.8056. Market participants remain cautious, keeping positions light ahead of this week's key interest-rate decisions...
The Australian Dollar (AUD) strengthened against the US Dollar (USD) on Monday, buoyed by improved risk sentiment amid easing geopolitical tensions. Reports from The Wall Street Journal indicate that Iran is signaling openness to negotiations with the United States (US), prompting optimism about a potential de-escalation in the recent Israel-Iran tensions. Diplomatic efforts are gaining momentum as international stakeholders, including the United States, Saudi Arabia, and the United Nations, continue to urge restraint and dialogue to prevent further escalation. Additionally, economic data...
President Donald Trump said he would fire Lisa Cook from the Federal Reserve's Board of Governors if she does not resign her post over mortgage-fraud accusations from a top...
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...