Author: admin

Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee warned on Friday that while sinking employment data is typically a cause for interest rate cuts, still-high inflation data is still cause for concern, and key Fed officials may not be fully sold on a September rate cut.Key highlightsOpen to criticism on Fed decision-making.Totally opposed to taking away Fed independence.Strange to call own move to Fed from CEA after 12 years “sinister” (in reference to Stephen Miran’s shift to the Fed board).Anyone who joins FOMC will take job seriously.Hiring could be artifically lower due to immigration.Still undecided on September rate decision.If…

The Swiss Franc strengthens as USD/CHF drops below 0.8000 to its lowest since late July.Weak US NFP data fuels Fed rate cut bets and triggers broad US Dollar selling.Focus now shifts to next week’s US CPI report, a key test for Fed expectations.The Swiss Franc (CHF) gains ground against the US Dollar (USD) on Friday, with USD/CHF sliding below the 0.8000 psychological mark to touch its lowest level since July 28. At the time of writing, the pair is trading near 0.7972, down almost 1.0% on the day, as the Greenback came under heavy selling pressure in the wake of…

XAU/USD rallies to a fresh all-time high after NFP miss, with unemployment rising and wage growth holding steady.US 2-year Treasury yield plunges 11 bps to 3.48%, while DXY drops 0.70% to 97.57 amid risk-off flows.Fed independence fears and Standard Chartered’s call for a 50 bps cut amplify the bullish case ahead of US CPI.Gold price rallies sharply and hits a new all-time high of $3,600 on Friday, following a soft Nonfarm Payrolls report, which raised speculation that the Federal Reserve (Fed) is ready to resume rate cuts. XAU/USD trades at $3,594, up 1.30% at the time of writing.Gold jumps 1.30%…

WTI falls to $61.20, its lowest level since June 2, before stabilizing near $61.50.Markets brace for Sunday’s OPEC+ meeting, with Saudi Arabia pushing for an accelerated return of 1.66 mb/d supply, though no final decision has been made.WTI trades below the 50-day SMA at $64.90, with key support at $61.50; a break lower could target $59.50-58.50.West Texas Intermediate (WTI) Crude Oil is heading into the weekend under heavy pressure, extending its losing streak to a third straight day as traders brace for the Organization of the Petroleum Exporting Countries and allies (OPEC+) meeting on Sunday, September 7. At the time…

United States (US) Treasury Secretary Scott Bessent warned that the Federal Reserve (Fed) must re-establish its crediblity and trust with the American people during an interview with the Wall Street Journal, published on Friday. This comes on the heels of a devastating Nonfarm Payrolls (NFP) report that shows the US economy added just 22K new jobs in August, a stomach-churning plummet in hiring that has been laid almost entirely at the feet of the Trump administration’s trade tariffs and potentially Constitution-violating immigration crackdowns.Key highlightsCentral bank must recommit to maintaining the confidence of the American people.To safeguard future and the stability…

August non-farm payrolls rose just 22k, well below the 75k consensus; three-month average is now 29k. The unemployment rate rose to 4.3%, breaking above its range of the last 15 months/ Payrolls also softened between the July and September 2024 FOMC meetings, resulting in a 50bps cut, Standard Chartered’s economists John Davies and Steve Englander report. From ‘solid’ to soft in less than six weeks”The US labour-market report for August was softer than expected. Headline non-farm payrolls rose just 22k, versus the 75k consensus. Average weekly hours and y/y hourly earnings were also below consensus, and the unemployment rate rose…

Silver consolidates near $41.00, holding just below its 14-year peak with bullish structure intact.US NFP miss fuels Fed cut bets, dragging the US Dollar and Treasury yields lower.Markets price in 88% chance of a 25 bps Fed cut and 12% odds of a larger 50 bps move this month.Silver (XAG/USD) is holding firm around $41.00 on Friday after retesting multi-year highs in the wake of soft US Nonfarm Payrolls (NFP) data. The metal peaked at $41.47 on Wednesday, its strongest level since September 2011, before easing slightly on Thursday. A broadly weaker US Dollar (USD) and falling Treasury yields after…

The Euro (EUR) strengthens on Friday against the US Dollar (USD), trading at around 1.1750 (+0.85%), as investors sell off the Greenback en masse following the publication of US employment figures.Looking at other currency pairs, the Euro is more stable against the Japanese Yen (JPY) (-0.1%) and Pound Sterling (GBP) (+0.1%), as traders look ahead to the German Industrial Production figures for July, to be published on Monday.The consensus is for a rebound of +1.3% month-on-month, following the sharp contraction of -1.9% in June, according to FXStreet’s Economic Calendar.For the Euro on the Forex market, the statistic represents an important…

The U.S. dollar fell sharply against major peers on Friday after crucial monthly jobs data showed that American employers hired fewer workers than expected, which likely guarantees a Federal Reserve interest rate cut. Labor Department data showed that nonfarm payrolls increased by only 22,000 jobs last month, far short of the 75,000 positions estimated by economists polled by Reuters. The dollar fell across the board following the report. It weakened 0.99% to 147.03 against the Japanese yen, but was still on track for the second straight week of gains. The greenback dropped 0.99% to 0.7998 against the Swiss franc and…

The Governing Council kept policy on hold in July, and is likely to remain on hold at the September meeting and for the foreseeable future, ABN AMRO’s economists Nick Kounis and Bill Divney report. ECB is ‘well positioned’ to face the upcoming tariff impact and uncertainty”President Lagarde has said that the ECB is ‘well positioned’ to face the coming period of tariff impact and uncertainty. Despite the expected undershoot of the 2% inflation target, the GC seems minded to look through this on the expectation that inflation will return to target in 2027. Although the ECB’s inflation projections in June…