Author: FX

The first U.S. CPI report of 2025 came in hotter than expected, with headline inflation rising 0.5% in January after December’s 0.4% increase. This pushed the year-over-year rate up to 3.0% from 2.9%. Core CPI, which strips out volatile food and energy prices, climbed 0.4% for the month and 3.3% annually, suggesting underlying price pressures remain stubborn. Link to the official U.S. CPI Report (January 2025) Details from the report gave clues on what may have driven January’s increase: Shelter costs rose 0.4%, accounting for nearly a third of the monthly gain Energy jumped 1.1% as gasoline prices increased 1.8%…

Consolidation was the name of the game early in the day, as market players were biting their nails ahead of the U.S. CPI release. Volatility picked up much later on, leading to diverging price action among higher-yielders, as individual catalysts also came in play. Here’s how asset classes reacted to the inflation figures and other major headlines. Headlines: Japan’s preliminary machine tool orders up 4.7% y/y in January (previous reading upgraded from 11.2% to 12.7%) BOJ Governor Ueda warned that higher food prices and int’l tariffs may impact inflation expectations API crude oil inventories up by 9.043M barrels (2.8M forecast)…

TD economists suggest that while the latest Consumer Price Index (CPI) report is not encouraging from the Federal Reserve’s perspective, it should not be viewed as a signal of sustained inflationary pressures. The firm cautions against extrapolating January’s strength into the medium-term inflation outlook, emphasizing that the key takeaway is that the data will likely keep the Fed on the sidelines for now—aligning with TD’s long-standing view.Despite the inflation surprise, TD maintains that the Fed will preserve its easing bias, remaining in a wait-and-see mode as it looks for further clarity from upcoming economic data. The firm continues to expect…

  Forex traders often struggle to understand how news affects the market. News can cause big price swings in currency pairs. This article explains how forex news impacts trading and offers tips on how to handle it. Learn to trade smarter with the news. Key Takeaways Forex news causes big price swings in currency pairs, affecting financial market volatility and creating trading chances. Economic data releases, such as GDP and inflation reports, move currency prices. On July 31, 2008, the U.S. Q2 GDP report of 1.9% (below the expected 2.3%) caused sharp dollar pair fluctuations. Central bank decisions impact forex…

Gold halts losses despite US CPI jumping above 3% in January. Traders slash Fed rate-cut bets to just 30 bps for 2025. US Dollar erases gains after Powell and Fed officials stay hawkish. Gold price recovered some ground late during Wednesday’s North American session. Federal Reserve (Fed) Chair Jerome Powell said that policy needs to remain restrictive as inflationary pressures mount and United States (US) President Donald Trump’s tariff threats intensify. XAU/USD trades at $2,897, virtually unchanged. The non-yielding metal halted its downtrend after the US Bureau of Labor Statistics (BLS) revealed that inflation jumped above 3% in the United…

High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions. Advisory warning: FOREXLIVE™ is not an investment advisor, FOREXLIVE™ provides references and…

The Dow Jones shed over 400 points on Wednesday at its lowest. Fed Chair Powell made his second appearance in two days. Rate markets have pushed bets of the next Fed rate cut to December. The Dow Jones Industrial Average (DJIA) tumbled on Wednesday,dropping over 400 points at its lowest and dipping into 44,090. The major equity index has since recovered some ground, but still remains down around 230 points on the day. Investor sentiment took a beating after United States (US) Consumer Price Index (CPI) inflation showed the US has made no progress on bringing down core inflation metrics in…

Attempt to form Austria's first government led by far right collapses Source link

I mean, it kinda shows they’re headed in the wrong direction but his comments show he’s not worried.We want to keep policy restrictive for nowWe have to wait and see what the effects of policies are before we can think about what we will doThere is uncertainty over policyUnderlying economy is very strong This article was written by Adam Button at www.forexlive.com. Source link

The US Dollar pops after stronger-than-expected January inflation numbers.  Fed Chairman Jerome Powell heads into his second day at Capitol Hill.  The US Dollar Index (DXY) shoots higher and heads to 108.50 in the CPI aftermath.  The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, is soaring in light of the January Consumer Price Index (CPI) release which came in as an upbeat surprise for both the monthly Core and Headline number. During his first testimony at Capitol Hill facing law makers, Federal Reserve (Fed) Chairman Jerome Powell did not leave many clues about…