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...
The dollar index remained below 107 on Monday, hovering at its lowest level in over two months, as weak US economic data increased expectations of further Federal Reserve interest rate cuts. On Friday, data showed that US retail sales fell 0.9% in January, significantly worse than the anticipated 0.1% decline, with consumer spending likely impacted by severe weather and wildfires in California. While both CPI and PPI came in above forecasts, the PPI components feeding into the Fed's preferred inflation gauge, the PCE index, showed signs of cooling. The dollar also weakened as President...
West Texas Intermediate (WTI) Oil price rebounds from losses in the previous session, trading around $70.60 per barrel during Monday's Asian hours. However, crude Oil prices faced headwinds as optimism surrounding a potential peace deal between Russia and Ukraine eased supply concerns. The possible removal of sanctions on Moscow could boost global energy supplies. According to BBC sources, Trump administration officials are scheduled to meet with their Russian counterparts in Saudi Arabia on Tuesday to discuss a potential peace agreement. This meeting marks a significant step in restoring...
EUR/USD halts its four-day winning streak, hovering around 1.0490 during Asian trading hours. Liquidity during the North American session may remain thin as all major US financial markets will be closed on Monday for the federal holiday, Presidents' Day. The EUR/USD pair gained ground recently due to delays in implementing US President Donald Trump's reciprocal tariffs, which are taking longer than analysts had anticipated. Additionally, disappointing US economic data has pressured the US Dollar (USD), providing further support for the EUR/USD pair. A weaker-than-expected US retail sales...
Gold edges higher in the early morning Asian session on a likely technical recovery after front-month Comex gold futures closed nearly 1.5% lower on Friday. However, gains in the precious metal may be capped by easing worries over U.S. tariffs that could hurt economic growth. Markets are coming around to the view that President Trump is using tariffs as a negotiating tool, ANZ Research analysts say in a note. This follows his order for reciprocal tariffs, which might take weeks or even months to complete, the analysts add. Spot gold is 0.1% higher at $2,885.86/oz. Source : Dow Jones...
Gold price (XAU/USD) edges lower to near $2,880 due to profit-taking during the early Asian session on Monday. However, fears of a global trade war in the wake of US President Donald Trump's push for reciprocal tariffs might help limit the precious metal's losses. The delay in the Trump administration's tariff proposals being implemented and profit-taking by traders cap the upside for the yellow metal. Trump on Thursday signed a presidential memorandum laying out his plan to impose "reciprocal tariffs" on foreign nations. However, he delayed their implementation as his administration...
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...