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...
GBP/USD rebounded from early-week losses on Tuesday, bouncing back up from a fresh technical floor near the 1.3450 level. Cable has been drifting within familiar technical levels as broad-market investor sentiment grinds to a halt ahead of key US economic figures. It'll be a quiet market session on Wednesday; meaningful economic data is functionally absent on both sides of the Atlantic. Investors will be on the lookout for further political headlines from the Trump administration as traders await results from President Donald Trump's attempt to directly "fire" Dr. Lisa Cook from the Federal...
USD/JPY eased slightly on Tuesday, backsliding around one-quarter of one percent and keeping the pair hobbled just below the 148.00 handle. The pair has been adrift in a tight consolidation pattern since the beginning of August, and Yen traders are unlikely to find much of a reason to kick off a new trend ahead of key economic data. US and Japanese inflation looms large this weekUS Personal Consumption Expenditures Price Index (PCE) will land on markets on Friday. Investors will be increasingly apprehensive as the week progresses; global markets are broadly hoping for a fresh round of...
AUD/USD is holding steady between familiar technical levels after catching a thin bid on Tuesday. US economic releases will take a breather on Wednesday, giving Aussie traders a chance to catch their breath, at least after the next round of Australian Consumer Price Index (CPI) inflation data. The latest US Personal Consumption Expenditures Price Index (PCE) inflation figures loom large later this week, pushing investor sentiment into the middle ahead of the key data print. Before then, US data remains fairly limited, and data reactions will likely stay constrained. Australia's monthly CPI...
Gold price attracts some buyers on Tuesday. The precious metal edges higher amid concerns about the US Federal Reserve's independence after the report that US President Donald Trump says he is removing Fed Governor Lisa Cook. Spot Gold trades near its Friday peak at $3,378.91, consolidating gains yet confined to a tight intraday range at the beginning of the week. The US Dollar (USD) posted a modest intraday advance at the beginning of the day, a corrective advance that followed last week's sell-off. Still, the American currency had little scope for a steady advance following the United...
The U.S. dollar traded largely unchanged Tuesday in volatile trading, after U.S. President Donald Trump announced he had fired Fed Governor Lisa Cook, in his latest assault on the U.S. central bank's independence. At 04:35 ET (08:35 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded basically flat at 98.320, recovering after falling as much as 0.4% after Trump;'s announcement. This followed the U.S. currency registering its biggest daily gain of the month on Monday. Fed independence in questionTrump said in the letter to Cook he was firing...
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...