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,...
The Japanese Yen (JPY) seesaws between tepid gains/minor losses against its American counterpart through the early European session on Monday amid mixed fundamental cues. The prevalent risk-on environment, along with the uncertainty over the likely timing of the next interest rate hike by the Bank of Japan (BoJ), is seen undermining the safe-haven JPY. However, the divergent BoJ-Federal Reserve (Fed) policy expectations hold back the JPY bears from placing aggressive bets. Investors seem convinced that the BoJ will raise interest rates by the end of this year. In contrast, the US central...
Oil prices fell in Asian trade on Monday, extending declines of more than 4% last week as investors awaited the outcome of talks between the U.S. and Russia later this week on the war in Ukraine. Brent crude futures fell 62 cents, or 0.93%, to $65.97 a barrel by 0631 GMT, while U.S. West Texas Intermediate crude futures were down 69 cents, or 1.08%, to $63.19. Expectations have risen for a potential end to sanctions that have limited the supply of Russian oil to international markets, after U.S. President Donald Trump said on Friday that he would meet Russian President Vladimir Putin on...
Gold prices slipped on Monday as market participants focussed on U.S.-Russia talks on the war in Ukraine, and July inflation data that could offer more insight into the Federal Reserve's interest rate outlook. Spot gold was down 0.6% at $3,378.49 per ounce, as of 0521 GMT, after hitting its highest since July 23 on Friday. U.S. gold futures for December delivery dropped 1.4% to $3,441.20. "Cooling geopolitical tensions surrounding the war in Ukraine saw gold fall further, following Friday's announcement that President Donald Trump will meet with Vladimir Putin on the U.S. soil," City...
USD/CHF weakened after two days of gains, trading around 0.8060 during the Asian session on Monday (August 11th). The currency pair weakened amid increasing likelihood that the Fed will deliver multiple interest rate cuts later this year. US consumer inflation data due Tuesday, followed by preliminary UK Q2 GDP data and the US Producer Price Index (PPI) due Thursday, will be in focus to provide further impetus for the US economy. The US Dollar Index (DXY), which measures the value of the US dollar (USD) against six major currencies, retraced its recent gains and was trading around 98.00 at...
Silver prices (XAG/USD) slipped in Asian trading on Monday (August 11th), ending a six-day winning streak. The white metal traded near $38.10 per ounce, pressured by a strengthening US dollar, investor profit-taking, and optimism regarding a potential truce in the trade war between the United States and China. This combination of factors reduced interest in safe-haven assets like silver. Market participants' focus is now on developments in trade negotiations between the world's two largest economies, particularly ahead of the deadline for imposing additional tariffs. US Secretary of...
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...