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 euro edged up on Tuesday, regaining some poise after political turmoil in France sent traders scrambling for hedging protection against further price swings, while the yuan hit a 13-month low on tariff risks and weakness in China's economy. The yen, which has gained nearly 4.5% in the last two weeks, retreated slightly against the dollar, but remained near six-week highs, as traders are growing increasingly confident that Japan may hike rates this month. The euro, which had been the weakest G10 currency through November, began this month with a 0.7% fall on Monday and was last hovering...
Oil prices rose nearly 1% on Tuesday, as traders awaited the outcome of the OPEC+ meeting later this week. Brent crude was up 66 cents, or 0.92%, at $72.49 a barrel by 0909 GMT, while U.S. West Texas Intermediate crude was up 63 cents, or 0.93%, at $68.73. OPEC+ is likely to extend its latest round of production cuts until the end of the first quarter at its meeting on Dec. 5, sources have said. "Given the improved compliance with production cuts from Russia, Kazakhstan and Iraq, the decline in Brent prices and indications in press reports, we assume OPEC+ production cuts will be extended...
Gold (XAU/USD) prices struggled to capitalize on its modest intraday uptick to $2,650 area and turned flat during the first half of the European session on Tuesday (3/12). Traders now seemed reluctant and preferred to wait for further cues on the Federal Reserve's (Fed) rate cut signal before positioning for the next leg of a directional move. Hence, the focus remains on this week's important US macro releases, including the closely watched Nonfarm Payrolls (NFP) report on Friday. Apart from this, Federal Reserve (Fed) Chairman Jerome Powell's scheduled speech will be looked upon for the...
Gold prices were steady on Tuesday as investors took a cautious stance ahead of the upcoming U.S. economic data that could provide insights into the Federal Reserve's interest rate path. Spot gold was nearly unchanged at $2,636.50 per ounce, as of 0156 GMT, after falling as much as 1% on Monday. U.S. gold futures was flat at $2,659.00. The dollar drifted higher, making greenback-priced bullion more expensive for overseas buyers. Key U.S. data this week includes the job openings due later in the day, the ADP employment report on Wednesday, and the payrolls report on Friday. "It seems...
USD/JPY climbs back closer to 150.00 mark.The Japanese Yen (JPY) edges lower against its American counterpart during the Asian session on Tuesday and pushes the USD/JPY pair away from the lowest level since October 16 touched the previous day. However, speculations that the Bank of Japan (BoJ) could hike interest rates again in December should limit any meaningful JPY depreciation. Apart from this, US President-elect Donald Trump's looming trade tariff threats, along with persistent geopolitical risks, might underpin the safe-haven JPY. Meanwhile, the recent decline in the US Treasury bond...
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...