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 Australian Dollar (AUD) strengthens for the second consecutive day on Friday, driven by US President Donald Trump's decision to postpone the implementation of reciprocal tariffs. Additionally, the AUD/USD pair appreciates as the US Dollar (USD) weakens amid falling US yields across the curve, despite ongoing concerns about a global trade war. Investors now await the release of US Retail Sales data later in the day. The AUD may face headwinds as expectations of a Reserve Bank of Australia (RBA) rate cut remain intact following fresh inflation outlook data. Consumer inflation expectations...
Oil steadied as the market digested the fallout from President Donald Trump's order of potential reciprocal tariffs on US trading partners.Brent was near $75 a barrel after a modest decline on Thursday, while West Texas Intermediate was above $71 a barrel. The US president signed a measure to propose new levies on a country-by-country basis. It could take weeks or months to complete, but raised the prospect of more trade tensions.Tariffs on crude from Canada and Mexico are set to start next month, alongside a levy on steel, but the US oil industry is confident it can win exemptions from the...
Gold edges higher in the early morning Asian session, supported by prospects of more U.S. tariffs which could spur safe-haven demand for the precious metal. President Trump on Thursday ordered federal agencies to explore how to adjust U.S. tariffs to match those of other countries. This is raising prospects of a global trade war, ANZ Research analysts say in a research report. Demand for gold has surged as investors seek to protect themselves against the impact of such a damaging economic event, the analysts say. Spot gold is 0.1% higher at $2,930.92/oz. Source : Dow Jones Newswires
Silver prices strengthened for the second straight day, posting a gain of over 0.48%. It is trading at $32.37 per troy ounce and is set to test the key resistance level at $32.64, a swing high on February 7. Tariffs are the name of the game and the most important driver during the North American session. US President Donald Trump has ordered advisers to draft ‘reciprocal' tariffs on US trading partners. From a technical perspective, Silver is trending higher but will face stiff resistance at $32.64. The Relative Strength Index (RSI) shows that buyers are gathering steam, and if they break...
GBP/USD strengthened on Thursday (2/13), rising more than nine-tenths of a percent to touch the 1.2560 region after economic data came out generally better than expected on both sides of the Atlantic. UK Gross Domestic Product (GDP) beat market forecasts, and US Producer Price Index (PPI) inflation figures eased investor concerns after a surge in consumer inflation this week. US President Donald Trump unveiled his latest idea for raising tax revenues in the face of sharp administrative tax cuts. "Reciprocal tariffs," a plan to impose fees on countries that impose tariffs on US goods, are...
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...