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) strengthened following the release of China's Trade Balance data on Thursday. However, the AUD came under downward pressure against the US Dollar (USD) following the earlier Australian Trade Balance data during Asian hours. Downside risks for the AUD/USD pair seem likely as the US Dollar (USD) may strengthen further on market optimism following former President Donald Trump's victory in the US election. China's trade volume expanded in October, reaching $95.27 billion year-on-year, beating the estimate of $75.1 billion and the previous $81.71 billion. Exports...
Gold (XAU/USD) prices extended its decline for the second straight session on Thursday. The dollar-denominated precious metal faced downside pressure from a stronger US Dollar (USD) following former President Donald Trump's victory in the US elections. Gold prices came under pressure as safe-haven flows declined amid market optimism and the "Trump trade." The shift was driven by the apparent presidential victory, while markets had previously anticipated a disputed outcome. The US Federal Reserve's (Fed) policy decision will be eyed on Thursday. Markets are expecting a 25 basis point...
Oil prices rose on Thursday following a sell-off triggered by the U.S. presidential election, as risks to oil supply from a Trump presidency and a hurricane building in the Gulf Coast outweighed a stronger U.S. dollar and higher inventories. Brent crude oil futures were up 65 cents, or 0.87%, at $75.57 per barrel by 0400 GMT. U.S. West Texas Intermediate (WTI) crude gained 54 cents or 0.75% to $72.23. Concerns around a Trump presidency squeezing oil supply from Iran and Venezuela as well as an approaching storm "more than offset the post-election impact of a stronger U.S. dollar and ......
The Australian dollar strengthened above $0.66 on Thursday, nearly recovering all of the previous session's losses, supported by a hawkish outlook from the Reserve Bank of Australia and optimism over potential stimulus measures in China. On Wednesday, the Aussie had fallen as much as 1.9%, pressured by a sharp rally in the US dollar following Donald Trump's decisive victory in the US presidential election. The RBA noted that the impact of Trump's win on the Australian economy remains highly uncertain, with the central bank awaiting China's response to potential policy shifts. This week,...
Gold remained around $2,650 per ounce on Thursday, after falling over 3% to hit a three-week low in the previous session, pressured by a stronger dollar following Donald Trump's US presidential victory. Trump's presidency has also led traders to unwind safe-haven gold positions, as markets anticipate higher interest rates from the Federal Reserve, diminishing gold's appeal. This came as the newly elected US president previously campaigned policies focused on immigration, raising tariffs, lowering taxes, and deregulation that fueled expectations of larger deficits and inflation. Meanwhile,...
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...