EUR/USD remains on the back foot on Friday as the latest US producer inflation data draws little market reaction. The pair hovers near its lowest level since May 2025 as bets on further Federal Reserve (Fed) tightening continue to support the US Dollar (USD).
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Chicago Federal Reserve (Fed) President Austan Goolsbee said inflation has broadened into categories “where prices are not being driven by energy,” adding that the Fed “definitely has work to do” to retain its credibility.
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During his speech, US Treasury Secretary Scott Bessent advocated for the Federal Reserve to keep an open mind about interest rate adjustments. He pointed out that the current economic indicators could be skewed due to a supply shock from the ongoing conflict in Iran. Despite recent market volatility, Bessent stressed that the US economy remains robust.
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The policymaker expressed concern about the latest inflation data, telling CNBC that the central bank likely will need to take action.
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Prior was 6.3% PPI final demand m/m +0.3% vs +0.4 expected Prior m/m +1.3% Ex-food and energy y/y +5.0% vs +5.0% expected Prior ex-food and energy 5.0% y/y Ex-food and energy m/m +0.3% vs +0.3% expected Prior ex-food and energy +0.7% m/m Ex-food, energy and trade y/y +4.9% vs +5.0% prior Ex-food, energy and trade m/m +0.5% vs +0.5% prior The market is increa…
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As traders ramp up their expectations for European Central Bank interest rate hikes, yields on German government bonds are climbing steadily. This shift follows US inflation figures that were unexpectedly high, disrupting the bond market landscape. Meanwhile, global stock indices are witnessing a downturn, impacting the demand for traditionally safe assets.
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Indian government bonds fell for a third consecutive session, driven by inflation and interest-rate outlook concerns. The benchmark yield increased to 7.3079%, reversing much of last week's gains. Retail inflation in India accelerated, surpassing the Reserve Bank of India's target range, which raises rate hike expectations. In the US, rising Treasury yields…
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The Japanese Yen (JPY) remains under sustained pressure near multi-month lows as USD/JPY pushes above the 160.00 level for a second consecutive session, prompting official warnings from Japanese Finance Minister Katayama regarding one-sided and rapid foreign exchange moves.
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Headlines: Wall Street steadies despite Nvidia drama but dip buyers are still walking a tight rope US bond market cracks resurface as higher for longer fears return to haunt Wall Street Higher real yields and stronger US dollar weigh on gold as Trump puts Iran deal in jeopardy Japan prime minister Takaichi fires another verbal warning as USD/JPY flirts with…
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The New Zealand Dollar (NZD) heads lower for the fourth consecutive day against the US Dollar (USD) on Friday, as speculation of a jumbo rate hike by the Federal Reserve (Fed) has increased the monetary divergence with the Reserve Bank of New Zealand (RBNZ).
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Oil prices show a moderate pullback on Friday as market expectations that a more aggressive Federal Reserve (Fed) monetary tightening will cap Oil consumption in the US have offset concerns about the stalled Middle East conflict.
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Brown Brothers Harriman’s (BBH) Elias Haddad notes the Dollar has extended its broad gains to a 19‑month high as Fed funds rate hike expectations push Treasury yields higher.
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The Euro (EUR) extends losses on Friday as mixed Eurozone macroeconomic data failed to offset the broad US Dollar's (USD) strength, with US Treasury yields surging amid speculation of a large Federal Reserve (Fed) rate hike next month.
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ING’s Chris Turner highlights a strong, macro-driven rally in the Dollar as markets price back-to-back Federal Reserve hikes in December and January, totaling around 85bp of tightening.
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Eurozone Q3 GDP second estimate +0.4% vs +0.4% q/q prelim Prior +0.6% Eurozone Q3 GDP second estimate +1.3% vs +1.3% y/y prelim Prior +1.2% There are no changes to the initial estimates as the euro area economy holds up in Q3. As a reminder, expectations were for a growth of just 0.2% on the quarter on the initial report. So, the second estimate here mainly…
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Chief Economic Advisor V Anantha Nageswaran emphasized the diminishing effectiveness of interest rate adjustments in controlling inflation due to supply chain disruptions. He indicated that fiscal policies will play a critical role in addressing these supply-induced challenges. Nageswaran highlighted that many countries have struggled to meet their inflation…
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Equity markets are falling as well, with interest rates and the dollar surging amid an increasingly hawkish Federal Reserve.
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