|
Fed Chair Powell calls for more efforts to contain inflation
Federal Reserve Chair Jerome Powell said in his speech today at the Central Banks Forum in Portugal that he wants to exert more efforts to control inflation before taking the decision to cut interest rates.
Powell warned from cutting rates prematurely, adding that central banks should be more confident first that inflation is sustainably moving towards 2%.
He added that moving prematurely on rates could upend the good work that was done so far.
Powell refused to answer any questions about the possibility of a Fed rate cut at the September meeting.
NASDAQ hits fresh record highs
Most US stock indices gained ground on Tuesday ahead of Federal Reserve Chair Jerome Powell’s speech later today.
Powell is attending a conference alongside several other central bank governors in Portugal and will speak about monetary policy.
According to the Fedwatch tool, markets are estimating there’s a 70% chance of a Fed rate cut in September.
On trading, Dow Jones fell 0.1%, or 15 points as of 16:41 GMT to 39,154, while S&P 500 rose 0.1%, or 7 points to 5482, as NASDAQ added 0.3%, or 62 points to 17,944.
Dollar moves in a positive zone ahead of Powell's speech
Dollar rose in European trade on Tuesday against a basket of major rivals, on track for the first profit in four days as US 10-year treasury yields rebounded, in turn boosting the greenback.
The gains came ahead of a speech by Federal Reserve Chair Jerome Powell in Portugal, which could include clues on the future of the monetary policy.
The Index
The dollar index rose 0.2% today to 106.05, with a session-low at 105.83.
The index closed down 0.1% on Monday on profit-taking off eight-week highs at 106.13.
US Yields
US 10-year treasury yields traded near four-week highs at 4.493%, underpinning the dollar.
US Rates
According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut stood at 65%, and at 78% for November.
Powell
The developments came ahead of Fed Chair Jerome Powell’s speech later this week in Portugal, which might include clues about the future of US interest rates.
Also later today, data on the JOLTS Job opportunities will be released, expected to show the availability of 7.96 million jobs in May compared to 8.06 million in April.
Gold prices dip ahead of Powell's speech
Gold prices fell in European trade on Tuesday, resuming losses and backing away from week highs under pressure from the dollar.
The losses came ahead of a speech by Federal Reserve Chair Jerome Powell in Portugal, which could include clues on the future of the monetary policy.
Prices
Gold prices fell 0.4% today to $2323 an ounce, with a session-high at $2334.
Prices rose 0.2% on Monday, after losing 0.1% on Friday on profit-taking away from a week high at $2339.
The Dollar
The dollar index rose 0.2% on Tuesday on track for the first profit in four sessions against a basket of major rivals.
A stronger dollar makes greenback-denominated gold futures costlier to holders of other currencies.
US Rates
According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut stood at 65%, and at 78% for November.
Powell
The developments came ahead of Fed Chair Jerome Powell’s speech later this week in Portugal, which might include clues about the future of US interest rates.
SPDR
Gold holdings at the SPDR Gold Trust fell 1.44 tonnes yesterday to a total of 827.61 tonnes, the lowest since June 24.