The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday after tamer-than-expected producer price inflation last month calmed worries that price pressures would hold the central bank back from policy easing. Traders stuck to bets the Fed will start with a quarter-point reduction at its meeting next week, and continue with same-sized cuts through year-end, based on pricing of futures contracts that settle to the Fed's policy rate. The producer price index increased 2.6% in August from a year earlier,...
AUD/USD is off the five-year low but remains heavy near 0.6000 in the Asian session on Monday. The pair continues to suffer from a US-China trade war as US President Trump said that he would not do a deal with China until the US trade deficit was sorted out. Analysts at ANZ Bank expect the RBA to cut interest rates in all the next three policy meetings in May, July, and August. Additionally, the bank also sees the possibility of a larger-than-usual interest rate cut of 50 basis points (bps) in May if global growth deteriorates significantly. In addition to bloating RBA dovish bets, fears of...
Most Asian currencies weakened on Monday, with the dollar also declining amid heightened fears of a U.S. recession and global economic disruptions from U.S. President Donald Trump's trade tariffs. The Chinese yuan retreated after Beijing retaliated against the increased tariffs over the weekend, although apparent intervention by the People's Bank of China limited the yuan's decline. Other Asian currencies weakened sharply as Trump signaled no intent to back down from his plans for sweeping reciprocal tariffs against major global economies. Dollar tests 6-mth lows; Trump doubles down on...
The EUR/USD pair reverses an Asian session dip to the 1.0880 aera and for now, seems to have stalled its retracement slide from the vicinity of mid-1.1100s, or the highest level since September touched last week. Spot prices currently trade around the 1.0960 region, nearly unchanged for the day amid mixed cues. The US Dollar (USD) struggles to capitalize on Friday's recovery from a six-month low and kicks off the new week on a weaker note amid bets that the US economy could enter a recession and force the Federal Reserve (Fed) to resume its rate-cutting cycle. In fact, the markets are now...
The Japanese Yen (JPY) kicks off the new week on a positive note as US President Donald Trump's sweeping reciprocal tariffs raise the risk of a global economic slowdown and continue to underpin traditional safe-haven assets. Meanwhile, concerns that harsher US reciprocal tariffs could negatively impact Japan's economy forced investors to scale back their bets that the Bank of Japan (BoJ) would raise the policy rate at a faster pace. This, in turn, acts as a headwind for the JPY and assists the USD/JPY pair to reverse an Asian session dip back closer to a six-month low – levels below the...
Oil prices fell sharply in Asian trade on Monday, extending recent declines after U.S. President Donald Trump largely doubled-down on his recent trade tariffs, ramping up concerns over slowing economic growth and weakening demand. China- the world's biggest oil importer- retaliated against Trump's tariffs over the weekend, while other majors such as the European Union outlined plans for retaliation, driving up concerns over a global trade war. This notion had battered oil prices through the last week, as traders feared worsening economic growth, which could in turn dent global oil...
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...