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,...
Sterling rose against a weakening dollar on Thursday with the markets watching whether the Bank of England will maintain its "gradual and careful" language on the pace of policy easing at its meeting due later in the day. That slow and steady path no longer looks so clear, with inflation above the BoE's projections and forecast by some economists to reach 4%, double the bank's target, in the coming months. Markets expect a 25-basis point rate cut, while pricing a total of 86 bps of rate cuts by December 2026. "Recent Monetary Policy Committee (MPC)-speak has leaned dovish, although it has...
The USD/CHF pair traded with a negative bias for the third consecutive day, despite the lack of further selling amid mixed fundamental signals. Spot prices managed to hold above their weekly low throughout the Asian session on Thursday and are currently trading just above the mid-0.8000s, down 0.10% for the day. The US dollar (USD) weakened to near a one-and-a-half-week low amid growing acceptance that the Federal Reserve (Fed) will resume its interest rate cutting cycle in September. This bet was reaffirmed by Friday's weaker-than-expected US Nonfarm Payrolls (NFP) report and Tuesday's...
World oil prices rose slightly on Thursday (August 7th) after experiencing a five-day decline, the longest decline since May. This increase occurred as investors monitored the US's move to impose sanctions on countries buying Russian oil, as well as President Donald Trump's diplomatic efforts to end the war in Ukraine. Brent crude prices rose above $67 per barrel, while West Texas Intermediate (WTI) hovered around $65. Trump previously doubled tariffs on Indian products in response to Russian energy purchases and opened the possibility of similar measures against China. On the supply side,...
Gold strengthened on Thursday (August 7), supported by renewed safe-haven demand after US President Donald Trump imposed additional 25% tariffs on Indian imports, escalating trade tensions. Spot gold rose 0.3% to $3,378.18 per ounce at 04:52 GMT. US gold futures rose 0.4% to $3,445.60. "Trump has issued new tariff threats, which keeps gold a top choice as a defensive strategy for investors," said Tim Waterer, chief market analyst at KCM Trade. "Gold is hovering near the psychological $3,400 level, with risk assets somewhat swayed by the US president's continued tariff announcements." On...
The Japanese Yen (JPY) weakens slightly during the Asian session on Thursday in reaction to reports that US President Donald Trump could impose an additional 15% tariff on all Japanese imports. This, along with the uncertainty over the likely timing of the next interest rate hike by the Bank of Japan (BoJ) and a generally positive risk tone, undermines the safe-haven JPY. Apart from this, a modest US Dollar (USD) bounce from over a one-week low touched on Wednesday pushes the USD/JPY pair back above mid-147.00s in the last hour. Meanwhile, the BoJ last week left the door open for a further...
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...