The International Monetary Fund on Thursday said the Federal Reserve has scope to lower interest rates because of the weakening U.S. labor market, but the central bank should move cautiously with a close eye on emerging economic data. "Our overall sense is that, given the downside risks to full employment, there is scope for the Fed to begin to lower policy rates," IMF spokeswoman Julie Kozack said in a regular briefing. "We also would say that the Fed should proceed cautiously, of course in a data-dependent way, in the coming months." The Fed is expected to lower its benchmark interest...
Oil prices rose early on Wednesday, for the first time in five sessions, as a report showed a larger than expected drop in U.S. inventories amid strong summer demand. West Texas Intermediate crude oil for September delivery was last seen up US$0.95 to US$66.11 per barrel, while October Brent oil was up US$0.92 to US$68.56. In its weekly survey, the American Petroleum Institute reported U.S. oil inventories fell by 4.2-million barrels last week, while the consensus analyst estimate expected a drop of 1.8-million barrels, according to Oilprice.com. The Energy Information Administration will...
The US Dollar is trading lower on Wednesday, weighed by a combination of renewed stagflation concerns following weak US macroeconomic data and investors' caution, awaiting Trump's nominee for the Fed Chair. The US President narrowed down the number of candidates to four after the rejection of Treasury Secretary Scott Bessent. The best positioned are the National Economic Council Director, Kevin Hassett, and former Governor Kevin Warsh, both proponents of an easier monetary policy. Governour Crhistopher Waller and David Malpass, a former Trump administration official and ex-president of the...
Gold prices eased on Wednesday as U.S. Treasury yields inched higher, while investors remained cautious ahead of President Donald Trump's Federal Reserve appointments. Spot gold was down 0.5% at $3,362.54 per ounce by 1047 GMT, after hitting a nearly two-week high on Tuesday. U.S. gold futures also fell by 0.5% to $3,417.30. Yields on benchmark 10-year Treasuries rose after four straight days of declines, reducing the appeal of non-yielding bullion. "Investors will be keeping a close eye on developments regarding White House appointments to the Federal Reserve and any trade-related news,...
The EUR/USD pair is consolidating gains near weekly highs as the US Dollar languishes, following an unexpectedly weak services sector report that cast further doubts on the momentum of the United States (US) economy. Renewed concerns about stagflation keep the US Dollar pinned near lows, while in Europe, retail consumption figures have failed to provide significant support to the Euro. The Euro (EUR) is trading at 1.1580 in the early European session on Wednesday, after bouncing from 1.1530 lows on Tuesday. The pair holds most of the gains taken on Friday after the release of a grim US...
The Pound Sterling (GBP) trades in a tight range around 1.3300 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair tracks a rangebound US Dollar as investors await the announcement of Federal Reserve (Fed) Governor Adriana Kugler's replacement, which should happen sometime this week after she announced her resignation on Friday. At the time of writing, the US Dollar index (DXY), which tracks the Greenback's value against six major currencies, wobbles around 98.80. On Tuesday, US President Donald Trump said to reporters that he will announce Fed...
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...