Federal Reserve Bank of New York President John Williams said Thursday that he sees lower risks to inflation as tariffs have driven up price pressures less than expected. "I see on the margin...a reduction of some of the upside risks to inflation" from tariffs, Williams told reporters after speaking at the Economic Club of New York. He noted this reduction comes alongside greater clarity about future economic policy. Williams acknowledged that President Donald Trump's import tax increases are "definitely" affecting price pressures, but added that in terms of tariff pass-throughs to higher...
EUR/USD traded sluggishly just above 1.0400 amid illiquid trading activity in the European session on Monday. The Euro (EUR) is set to end the calendar year down nearly 5.5% against the US Dollar (USD), which was hit particularly hard during the last three months of 2024 as the European Central Bank (ECB) maintained its dovish stance on interest rates. In addition, market participants are concerned about the Eurozone's economic growth as the impending tariff hikes from US President-elect Donald Trump are likely to destabilize its export sector. Source: FXStreet
The AUD/USD pair halted its five-day losing streak, trading around 0.6200 during European hours on Monday. The pair gained as the US Dollar (USD) remained weaker amid thin trading ahead of the New Year holiday, while the US Treasury bond yields depreciated. The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against a basket of six major currencies, is trading around 108.00, with the 2-year and 10-year yields on the US Treasury note at 4.30% and 4.59%, respectively. Source: FXStreet
The Japanese Yen (JPY) remained strong against the US Dollar (USD) on Monday. The USD/JPY pair remained subdued as the Japanese Yen (JPY) strengthened on the possibility of the Bank of Japan (BOJ) raising interest rates in January following the release of the Tokyo Consumer Price Index (CPI) inflation data last week. Japan's Jibun Bank Manufacturing PMI came in at 49.6 in December, slightly beating the preliminary estimate of 49.5 and improving from 49.0 in November. While marking the highest level since September, it still signaled a decline in factory activity for the sixth straight...
Gold prices (XAU/USD) recovered recent losses from the previous session, despite lower trading volumes on Monday than usual ahead of the New Year holiday. Safe-haven Gold gained upside support as markets anticipate signals on the US economy under the incoming Trump administration and the Federal Reserve's (Fed) interest rate outlook for 2025. Safe-haven demand for the yellow metal could increase as potential tariffs and trade policies by the incoming Trump administration, which could trigger trade conflicts, boost risk aversion sentiment. However, the prospect of fewer Fed rate cuts in...
Silver price (XAG/USD) recovers its recent losses from the previous session, trading around $29.50 per troy ounce during the Asian hours on Monday. However, trading volume is lighter than usual ahead of the New Year holiday. The safe-haven Silver appreciates as traders anticipate signals regarding the United States (US) economy under the President-elect Trump administration and the Federal Reserve's (Fed) interest rate outlook for 2025. The potential for Donald Trump's tariffs and trade policies could trigger trade conflicts, increasing the risk aversion sentiment and supporting the demand...
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...