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...
The dollar staged a shaky recovery on Wednesday, with gains capped by renewed investor worries about the Federal Reserve's independence following U.S. President Donald Trump's latest attempt to extend his power over the central bank. Trump had on Monday said he would fire Fed Governor Lisa Cook over alleged improprieties in obtaining mortgage loans, though Cook's lawyer later said she would file a lawsuit to prevent her ouster, kicking off what could be a protracted legal fight. The dollar initially weakened on the developments though later regained some ground on Wednesday, rising 0.33%...
Gold prices fell in Asian trade on Wednesday after rising to an over two-week high as U.S. President Donald Trump's attempts to fire a Federal Reserve Governor sparked renewed concerns over the central bank's independence. The yellow metal had initially rallied on Trump's late-Monday announcement that Fed Governor Lisa Cook be removed from her post immediately over allegations of mortgage fraud. The dollar tumbled after Trump's move, also benefiting broader metal prices. But the greenback recouped its losses, while Treasury yields also stabilized, as Cook and the Fed argued that Trump had...
The EUR/USD pair edges lower to near 1.1630 during the Asian trading session on Wednesday. The major currency pair faces a slight selling pressure as political uncertainty in France has weighed on the Euro (EUR). The existence of Prime Minister (PM) François Bayrou's minority government has come under threat as all three opposition parties of France have expressed that they won't back a confidence vote over his €44 billion budget package on September 8. Political uncertainty in France led to a meltdown in French assets on Tuesday. CAC 40 ended 1.7% down in Tuesday's trade. Source: FXstreet
The Australian Dollar (AUD) remains steady following the release of the Monthly Consumer Price Index (CPI) on Wednesday. However, the AUD/USD pair receives downward pressure as the US Dollar (USD) recovers its recent losses from the previous session. Australian Bureau of Statistics (ABS) reported that the Monthly Consumer Price Index jumped by 2.8% year-over-year in July, following a 1.9% increase reported in June. The market consensus was for 2.3% growth in the reported period. Meanwhile, the Australian Construction Work Done improved to 3% in the second quarter, against the 0.8%...
GBP/USD recovered from an early-week correction on Tuesday, bouncing from a new technical floor around 1.3450. The currency pair returned to sideways movement within a familiar range as global market sentiment tended to pause awaiting the release of more important US economic data. Wednesday is expected to be a quiet session, with virtually no major data coming from either the US or Europe. Investors are still monitoring political headlines from the Trump administration while awaiting developments on President Donald Trump's efforts to "fire" Dr. Lisa Cook from the Fed's Board 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...