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 EUR/USD pair edges lower to near 1.1630 during the Asian trading session on Wednesday. The major currency pair faces a slight selling pressure as political uncertainty in France has weighed on the Euro (EUR). The existence of Prime Minister (PM) François Bayrou's minority government has come under threat as all three opposition parties of France have expressed that they won't back a confidence vote over his €44 billion budget package on September 8. Political uncertainty in France led to a meltdown in French assets on Tuesday. CAC 40 ended 1.7% down in Tuesday's trade. Source: FXstreet
The Australian Dollar (AUD) remains steady following the release of the Monthly Consumer Price Index (CPI) on Wednesday. However, the AUD/USD pair receives downward pressure as the US Dollar (USD) recovers its recent losses from the previous session. Australian Bureau of Statistics (ABS) reported that the Monthly Consumer Price Index jumped by 2.8% year-over-year in July, following a 1.9% increase reported in June. The market consensus was for 2.3% growth in the reported period. Meanwhile, the Australian Construction Work Done improved to 3% in the second quarter, against the 0.8%...
GBP/USD recovered from an early-week correction on Tuesday, bouncing from a new technical floor around 1.3450. The currency pair returned to sideways movement within a familiar range as global market sentiment tended to pause awaiting the release of more important US economic data. Wednesday is expected to be a quiet session, with virtually no major data coming from either the US or Europe. Investors are still monitoring political headlines from the Trump administration while awaiting developments on President Donald Trump's efforts to "fire" Dr. Lisa Cook from the Fed's Board of...
Gold edges lower in early Asian trade on possible position adjustments. However, gold's losses could be limited by safe-haven demand tied to worries about the Fed's independence and risks over France's political situation. U.S. President Trump's move to dismiss Fed Governor Cook has injected uncertainty over the Fed's independence, IG's Axel Rudolph says in an email. Also, the French prime minister's austerity plan and looming confidence vote on Sept. 8 have stoked risks of a potential government collapse, the senior technical analyst adds. Spot gold is 0.1% lower at $3,390.64/oz. Source:...
Oil steadied after dropping by the most since early August as investors counted down to the imposition of higher US tariffs on India. The US is due to double tariffs on some Indian goods to 50% in a bid to punish the country for taking Moscow's oil. Oil has shed more than 10% this year as the US-led trade war fanned worries about demand, and OPEC+ unwound supply curbs at a rapid clip. Oil steadied after dropping by the most since early August as investors counted down to the imposition of higher US tariffs on India over its purchases of Russian crude. West Texas Intermediate traded...
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...