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Market Outlook

Asian Currencies Tumble Amid Economic and Geopolitical Worries, Third Plenum Disappoints Investors 1

Asian Currencies Tumble Amid Economic and Geopolitical Worries, Third Plenum Disappoints Investors

Asian currencies declined on Friday as economic and geopolitical risks overshadowed the market’s optimism about potential interest-rate cuts. The disappointment stemmed from China’s Third Plenum, which failed to convince investors of a renewed growth impetus. Today’s negative price action in Asian equities is more attributed to concerns over new US restrictions on the semiconductor sector and […]

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Gold Price Rally Faces Headwinds Amid Dollar Rebound and Treasury Yield Rise 3

Gold Price Rally Faces Headwinds Amid Dollar Rebound and Treasury Yield Rise

Gold’s upward momentum might face resistance if the US Dollar makes a strong comeback driven by risk aversion. A modest rebound in US Treasury bond yields could also hinder gold’s advance. The renewed strength in gold prices early Thursday is attributed to escalating US-China trade tensions, which are expected to intensify with a likely Trump presidency.

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Market Adjustments Reflect Bets on Fed Rate Cuts Amid Trump Presidency Concerns 5

Market Adjustments Reflect Bets on Fed Rate Cuts Amid Trump Presidency Concerns

Traders are recalibrating portfolios as expectations grow that the Federal Reserve will soon begin cutting interest rates. Optimism about imminent Fed easing, bolstered by signs of resilience in US retail sales, has supported a shift towards risk-on sentiment. However, the increasing likelihood of a Donald Trump presidency has simultaneously heightened concerns over potential geopolitical and trade

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Dollar Rallies and Treasury Futures Dip Amid Trump Election Speculation 7

Dollar Rallies and Treasury Futures Dip Amid Trump Election Speculation

The U.S. dollar surged and Treasury futures declined as investors heightened their bets on a potential Donald Trump victory in the upcoming presidential election following an assassination attempt. The greenback appreciated against all Group-of-10 currencies, while futures indicated a rise in Treasury yields as European cash trading loomed. These market moves reflect expectations that a Trump administration would

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U.S. Inflation Data Fuels Rate Cut Expectations as Treasury Yields Steady 9

U.S. Inflation Data Fuels Rate Cut Expectations as Treasury Yields Steady

U.S. inflation data bolstered the case for Federal Reserve rate cuts, with Treasury yields remaining stable following a significant drop. The prospect of lower interest rates sent 10-year yields down by seven basis points to 4.21% in the previous session. Chicago Fed President Austan Goolsbee hailed the CPI data as “excellent,” noting that it provided

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Traders Eye U.S. Inflation Data, Dollar Weakens Ahead of Report 11

Traders Eye U.S. Inflation Data, Dollar Weakens Ahead of Report

Traders are bracing for a pivotal U.S. consumer inflation report, with the dollar falling against most major currencies ahead of the release. The upcoming data is expected to indicate easing price pressures, potentially increasing the likelihood of Federal Reserve interest rate cuts. The core Consumer Price Index (CPI), which excludes volatile food and energy costs and is considered

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Powell Signals Patience on Rate Cuts Amid Cooling Job Market 13

Powell Signals Patience on Rate Cuts Amid Cooling Job Market

Federal Reserve Chair Jerome Powell refrained from specifying a timeline for interest rate cuts in his testimony to lawmakers on Tuesday. However, he highlighted increasing signs of a cooling job market, citing government data that showed a third consecutive month of rising unemployment. Shorter-term Treasuries outperformed on expectations that they would benefit more from potential policy easing.

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Powell's Testimony in Focus as Market Eyes September Rate Cut 15

Powell’s Testimony in Focus as Market Eyes September Rate Cut

Federal Reserve Chair Jerome Powell will commence his semi-annual testimony to Congress on Tuesday, a critical event that could influence market expectations for a September interest-rate cut. Market participants are pricing in the likelihood of two rate cuts this year, with a 70% chance of the first cut in September, according to swaps data. Powell is under

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Global Equities Hit Record Highs Ahead of US Jobs Data; China Moves to Cool Market Rally 17

Global Equities Hit Record Highs Ahead of US Jobs Data; China Moves to Cool Market Rally

Global equities are reaching new peaks as traders shift their focus to Friday’s pivotal US jobs report. China’s central bank has announced its intention to curb the ongoing market rally by selling government bonds, with “hundreds of billions” of yuan in securities ready to be deployed through agreements with lenders. A benchmark for global stocks surged to

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Weak Economic Data Fuels Rate Cut Speculation; Dollar Declines for Third Session 19

Weak Economic Data Fuels Rate Cut Speculation; Dollar Declines for Third Session

A spate of soft economic data has bolstered the case for Federal Reserve interest-rate cuts, leading to a third consecutive session of declines for the dollar. Reports on Wednesday revealed the American services sector contracted at its fastest pace in four years, while the labor market continued to show signs of softening. These developments have

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