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 US Dollar Index (DXY), which measures the value of the US dollar (USD) against six major currencies, held steady after dropping more than 0.5% in the previous session. The DXY traded around 98.20 during the Asian session on Thursday (August 7th). Weekly US Initial Jobless Claims are likely to be monitored later in the North American session. Traders are awaiting further developments surrounding the next US Federal Reserve (Fed) Chair. US President Donald Trump announced on Tuesday that he will name a Fed Chair and Kugler's replacement by the end of the week. Trump is considering White...
Gold held steady early in the Asian session as traders assessed geopolitical developments and tariffs. On the one hand, President Trump said there was a "high probability" he would soon meet with Russian President Putin to discuss the war in Ukraine, which may reduce the precious metal's appeal as a safe-haven asset. On the other hand, Trump doubled tariffs on India to 50%, while India criticized the new tariffs, which could escalate US-India trade tensions. "The coming hours and days may play a key role in shaping the dynamics of the [gold] market," said Samer Hasn, senior market analyst...
Oil maintained a five-day losing streak, its longest losing streak since January, as investors looked beyond US efforts to punish buyers of Russian crude, while following President Donald Trump's diplomatic push to end the war in Ukraine. West Texas Intermediate crude was little changed at just under $65 a barrel after dropping to its lowest closing level since early June, while Brent closed just below $67. On Wednesday, Trump doubled tariffs on Indian goods to 50% due to the country's purchases of Russian energy, with the tariffs set to take effect in three weeks. However, no similar US...
The EUR/USD rallied more than 0.50% on Wednesday, boosted by broad US Dollar weakness across the board as traders began to price in rate cuts by the Federal Reserve. In addition, fears of the Fed's independence from the White House increased, as US President Trump said that he would nominate a replacement for the vacated seat by Fed Governor Adriana Kugler, who steps down on August 8. The pair trades at 1.1657 after bouncing off lows of 1.1564. The economic docket in the US was empty on Wednesday, though a slew of Fed officials crossed the wires. Boston Fed President Susan Collins revealed...
Gold price retreats in the North American session, weighed down by rising US Treasury yields, traders booking profits, and news that US President Donald Trump might name Fed Governor Adriana Kugler's replacement toward the end of the year. The XAU/USD trades at $3,372, down 0.23%. Bullion faltering to extend its rally, which extended for three days, is also attributed to traders booking profits, even though US President Donald Trump signed an executive order adding a 25% levy on India as the latter continues to purchase Russian Oil. India's new tariff, effective 21 days after August 7,...
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...