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 Australian dollar (AUD) extended its losses against the US dollar (USD) on Monday (6/16). The AUD/USD pair remained subdued for the second straight session amid rising tensions in the Middle East. The AUD held losses after the release of key Chinese economic data, given that Australia and China are close trading partners. China Retail Sales rose 6.4% year-on-year in May, beating estimates of 5.0% and a 5.1% increase in April. Meanwhile, Industrial Production increased 5.8% YoY but below estimates of 5.9% and 6.1% previously. Israel and Iran continue to exchange attacks despite...
The dollar rose against major currencies on Monday, boosted by safe-haven buying from investors worried that the Israel-Iran fighting could escalate into a wider regional conflict as they prepared for a week packed with central bank meetings. With Iran and Israel showing no sign of backing down from their attacks, the prospect that Tehran might try to close the Strait of Hormuz - the world's most important gateway for oil shipments - raises the broader economic risk of disruption in the energy-rich Middle East. Scheduled weekend talks between Iran and the United States over Tehran's...
EUR/USD extended its decline for the second straight session, trading around 1.1540 during Asian hours on Monday (6/16). The currency pair depreciated as the US Dollar (USD) strengthened amid increased demand for safe havens as geopolitical tensions escalate in the Middle East. Israel launched an attack on Iran's nuclear facilities and missile plants on Friday. Iran responded with an attack on Israel on Sunday night, with explosions seen in the coastal city of Haifa. Israel continues to attack military targets in Iran, despite international calls for diplomacy and de-escalation, according...
Spot gold prices ended last week at a record high and are set to continue to rise in Asian trading, said Chris Weston, head of research at Pepperstone. He said gold prices could test their all-time high of $3,500.10 an ounce. Traders have been reducing profitable long positions in silver, platinum and palladium, potentially increasing cash in their portfolios or even shifting exposure to gold, he added. (alg) Source: Dow Jones Newswires
Oil prices rose in early Asian trade on Monday after Israel and Iran launched fresh attacks on Sunday, raising concerns that the escalating fighting could trigger a wider regional conflict and disrupt oil exports from the Middle East. Brent crude futures rose $1.70, or 2.3%, to $75.93 a barrel by 2253 GMT, while U.S. West Texas Intermediate crude rose $1.62, or 2.2%, to $74.60. Oil prices had jumped more than $4 earlier in the session. Both benchmarks closed 7% higher on Friday, after jumping more than 13% during the session to their highest since January. The latest attacks between...
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...