Markets are kicking around the idea of a Federal Reserve rate cut in September, but Morgan Stanley isn't sure, warning that the odds may be closer to 50-50 despite widespread expectations. Strong economic indicators including solid GDP growth, healthy financial conditions, and low volatility stand in the way of a clear case for easing, the bank said in a recent report. Nominal GDP growth remains robust at over 5%, unemployment holds steady at 4.2%, and retail sales continue surpassing expectations, reflecting an economy far from needing stimulus, Morgan Stanley's economists said. "It cannot...
EUR/USD declines to near 1.0450 in Tuesday's European session after failing to hold above the psychological resistance of 1.0500 in the last two trading days. The major currency pair slumps as the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, rebounds after attracting bids near a two-month low and recovers to near 107.00 at the press time. The Greenback discovers buying interest as investors weigh in expectations that the Federal Reserve (Fed) will keep interest rates in the current range of 4.25%-4.50% for a longer period. On Monday, a slew of...
Gold's price (XAU/USD) is flirting with a near 0.50% gain this Tuesday in the European trading session, with the precious metal trading around $2,910 at the time of writing. US yields are catching up on events after the US President's Day holiday on Monday. Still, Gold is in favor of traders as a safe haven for tariffs and geopolitical uncertainty. Meanwhile, Federal Reserve Bank (Fed) President of Philadelphia Patrick Harker advocated on Monday night for the central bank to keep interest rates unchanged. He pointed out that recent inflation reports and gauges are not tracking economic...
The Pound Sterling (GBP) gives up an upbeat United Kingdom (UK) labor market data-driven recovery against its major peers on Tuesday. The British currency falls back as Bank of England (BoE) Governor Andrew Bailey has reiterated his concerns over the economic outlook. Bailey said in an event hosted by Bruegel, in Brussels in Tuesday's European session that we (officials) are facing a "weak growth environment" in the UK and added that we are in a period of "heightened uncertainty". Bailey also said in his interview with the BusinessLine on Monday that the economic outlook is sluggish and...
The dollar rises as its recent downward correction has likely run its course in the absence of tangible negative drivers, ING analyst Francesco Pesole says in a note. Markets will remain focused on any developments on U.S.-Russia talks over the Ukraine war, he says. Barring any major breakthrough, the "optimistic push and relative upbeat risk sentiment may stall or fade in the next couple of days and the dollar can continue to recover some ground. The DXY dollar index rises 0.3% to 106.915 after falling to a two-month low of 106.566 on Friday. Source: Marketwatch
Gold prices extended their gains on Tuesday, as uncertainty over U.S. President Donald Trump's tariff plans continued to dominate market sentiment, driving safe-haven demand amid fears of a potential global trade war. Spot gold was up 0.6% at $2,913.79 an ounce, as of 0714 GMT. U.S. gold futures gained 0.9% to $2,925.50. "We've seemingly got pretty significant central bank buying and that we've also got these potential shortages in Europe on the basis that there seems to be a rush to get gold in the U.S., to avoid possible tariffs," Capital.com's financial market analyst Kyle Rodda...
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...