The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday after tamer-than-expected producer price inflation last month calmed worries that price pressures would hold the central bank back from policy easing. Traders stuck to bets the Fed will start with a quarter-point reduction at its meeting next week, and continue with same-sized cuts through year-end, based on pricing of futures contracts that settle to the Fed's policy rate. The producer price index increased 2.6% in August from a year earlier,...
Gold futures are down 0.2% following the release of the July CPI, with the data causing traders to pare the downward move seen heading into this morning. The year-over-year move in consumer prices was less than forecast by economists, while core inflation at 3.1% was above forecasts. The numbers have investors embracing a risk-on attitude, says XMArabia in a note. "The fact that inflation is unchanged… means that the odds are high for a rate cut and this is pushing the prices higher," says XMArabia. Source: Bloomberg
A Bloomberg gauge of the dollar fell after US consumer inflation figures largely matched expectations, sending Treasury yields lower across the curve. Traders added to bets on a September interest-rate cut by the Federal Reserve. The Bloomberg Dollar Spot Index down 0.3%; two-year Treasury yield falls 6bp to 3.71% US headline CPI rose 0.2% MoM (0.2% forecast); core CPI rose 0.3% MoM (0.3% expected) Headline YoY CPI came in at 2.7% versus 2.8% forecast Read more: US Core CPI Picks Up to Fastest Pace Since January on Services "Inflationary pressures look very...
Oil prices fell to the lowest in more than two months early on Tuesday as rising supply continues to offset strong summer demand. West Texas Intermediate crude oil for September delivery was last seen down US$0.44 to US$63.52 to US$63.52, the lowest since June 5, while October Brent crude was down US$0.34 to US$66.29. The drop comes as the market continues to grapple with rising supply, as OPEC+ completes the return of 2.2-million barrels per day of production cuts with a final tranche of 548,000 bpd in September, boosting output despite rising production from North and South America and...
Gold futures fall ahead of key U.S. economic data. Futures are down 0.3% at $3,394.40 a troy ounce. If Tuesday's Consumer Price Index data comes in soft, pressure will mount on the Federal Reserve to cut interest rates further, benefiting non-interest bearing bullion, Commerzbank analysts say in a note. Gold prices came under pressure in the prior session, falling sharply on a stronger U.S. dollar and renewed hopes for an end to the Russia-Ukraine war sapping safe-haven demand, Commerzbank says. Gold prices on U.S. commodities exchange Comex were further weighed down by expectations that...
The Pound Sterling (GBP) attracts significant bids against its major peers on Tuesday after the release of the upbeat United Kingdom (UK) labor market data for the three-months ending June. The Office for National Statistics (ONS) reported that the economy created fresh 239K jobs in the second quarter of the year, well above the 134K workers hired in the three months ending May. This is a significant recovery from earlier indicatores, which showed that firms became reluctant to increase their workforce due to the increase in employers' contributions to social security schemes to 15%. The...
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...