Author: FX

GBP/USD extends its downward momentum, touching a new seven-month low of 1.3097 on Friday. The pair remains under persistent selling pressure as investors continue to favor the US Dollar (USD) amid reduced expectations of further Federal Reserve (Fed) easing.This latest decline underscores the fragile sentiment surrounding the Pound Sterling (GBP), which has been unable to find support despite oversold conditions, reflecting broader market skepticism over the United Kingdom’s (UK) economic and fiscal outlook.The US Dollar Index (DXY), which tracks the Greenback’s performance against six major currencies, holds near a three-month high at 99.80 after Fed Chair Jerome Powell downplayed the…

95-year-old Warren Buffett already announced that he will be stepping down from Berkshire Hathaway at year end. In February, successor Greg Abel will pen a annual shareholder letter but the WSJ reports today that Buffett will publish two letters on November 10 — one to Berkshire Hathaway shareholders and one to his three children, presumably about his wealth.Buffett will step down as CEO but will remain chairman.Buffett is known for a willingness to pay up for quality but here is a chart showing that his big bets were at levels far below what major companies are trading at now. That…

Gold (XAU/USD) drifts lower on Friday after holding above the $4,000 level for the better part of the day as investors reassess the Federal Reserve’s (Fed) monetary policy outlook following this week’s interest rate cut. At the time of writing, XAU/USD is trading around $3,985, down nearly 1.0% on the day and poised for a second straight weekly loss.A firmer US Dollar (USD) and steady Treasury yields are capping upside attempts in Gold, as traders scale back expectations of another rate cut this year. In his post-meeting remarks, Fed Chair Jerome Powell downplayed the likelihood of a December rate cut,…

West Texas Intermediate (WTI) US Oil price rises to $60.50 per barrel on Friday, up 0.65% on the day, extending its rebound after two sessions of subdued trading. Despite the modest recovery, Crude Oil prices remain on track for their third consecutive monthly decline as persistent oversupply concerns limit upside potential ahead of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) meeting on Sunday.According to recent reports relayed by Reuters, eight OPEC+ members are preparing to increase their combined output by 137,000 barrels per day (bpd) in December as part of their effort to regain lost market…

As London/European traders head for the exits, the major US stock indices are trading at Lowe’s for the day. The Dow industrial average is now down -0.18% or -89 points. At session highs the index was up 150 points.S&P index is up 3.24 points or 0.05%. At session highs the index was up 52.26 points.NASDAQ index is up 87 points or 0.36%. Added session highs the index was up 365.09 points.Fed officials speaking today have been more hawkish and suggest that a December cut is certainly in question. Having no data is starting to become more problem as well.US yields…

Federal Reserve (Fed) Bank of Cleveland President Beth Hammack is due to participate in a fireside chat at the Evolving Landscape of Bank Funding Conference hosted by the Federal Reserve Bank of Dallas on Friday. She said that she would not have cut rates and that all of us would go out into the districts, getting a robust picture of the economy. Key QuotesWould not have cut rates.Challenged on both sides of mandate.Some emerging signs of softness in labor, including layoffs.Now around estimate of neutral.Barely restrictive.Need to maintain some restriction to bring down inflation.Tariffs just one piece of inflation puzzle; also…

Federal Reserve Bank of Atlanta President Raphael Bostic is scheduled to participate in a fireside chat at the Evolving Landscape of Bank Funding Conference, hosted by the Federal Reserve Bank of Dallas on Friday. Bostic said that he supported the cut because he still feels the economy is in restrictive territory and that “we have to see more progress before comfortable getting rates to neutral.”Key TakeawaysEventually got behind the cut this week.Mandates are in tension.Supported cut because still feel we are in restrictive territory.Need to get inflation to 2%. Less than half of upward price pressures being reported as from…

United States (US) Treasury Secretary Scott Bessent said on Friday that he thinks the Chinese leadership was slightly alarmed by the global backlash to their export controls and that “everything’s ironed out in terms of the permissions, and we should see a transaction very soon.”Key QuotesChina made a real mistake by firing shots on rare earths.US and Chinese leaders had reached an “equilibrium” but warned that China would not be able to keep using its critical minerals as a coercive tool.I think the Chinese leadership were slightly alarmed by the global backlash to their export controls.There’s an agreement that, ceteris…

The Japanese Yen (JPY) steadies against the US Dollar (USD) on Friday, with USD/JPY pausing its two-day winning streak despite the Greenback’s broader strength, as renewed verbal warnings from Japanese officials revive intervention concerns.Japan’s new Finance Minister Satsuki Katayama said the government is “closely monitoring FX with a high sense of urgency,” a remark that offered the Yen some intraday support after the pair touched fresh multi-month highs on Thursday.At the time of writing, USD/JPY is trading around 154.00, holding firm near an eight-and-a-half-month high and on track for its biggest monthly gain since June.Meanwhile, the US Dollar Index (DXY),…

Fed’s Bostic is saying: Eventually got behind the cut this weekDual mandates are in tensionsupported a cut because it still feels we are in restrictive territory.Need to get inflation to 2%.Lesson half of upward price pressure is being reported as from tariffs.We have to see more progress before comfortable getting rates to neutral.Really like Powell’s fog analogy, preferable to go lower one uncertainAlso we are not completely flying blind.Some of the labor market shift is due to structural changes like technology, immigration, trade policyRecession risk is not on people’s mindsGlad chair Powell added words saying December rate cut not a…