Latest news with #JosephCarpuso
CNBC
4 days ago
- Business
- CNBC
Dollar steadies as hot wholesale inflation data tempers rate cut fervor
The dollar held on to previous session gains on Friday after hotter than expected inflation data prompted traders to trim wagers on rate cuts by the U.S. Federal Reserve. The euro and sterling were steady against the dollar after falling 0.5% and 0.3% on Thursday, respectively, while the Japanese yen rose 0.3% to 147.395 following stronger-than-expected GDP data for the second quarter. Overnight, markets had to contend with U.S. producer prices showing the quickest rise in three years in July amid a surge in the costs of goods and services, pointing to a broad pick up in inflationary pressures which analysts say could pose a dilemma for the Fed. The hot measure of producer price inflation followed a comforting consumer inflation outcome earlier in the week which had boosted expectations of policy easing in the world's largest economy and helped lift risk assets across the board. Odds of a 25-basis-point cut by the U.S. central bank retreated slightly after the producer price figures, per CME's FedWatch tool. A combination of supportive data and remarks from the U.S. Treasury Secretary had also given rise to the possibility of an outsized 50-basis-point rate cut in September but those expectations were wiped out entirely after Thursday's data. The wholesale U.S. inflation data "warranted a move in front-end rates and firmer a 25-basis-point cut at the Fed's September meeting remains the default setting," said Chris Weston, head of research at Pepperstone. The 2-year U.S. Treasury yield was steady in early Asia trading at 3.7262% after rising by as much as 5 basis points on Thursday. On the far end of the curve, the 10-year U.S. Treasury yield was at 4.2849% after rising by a similar degree overnight. "The combination of elevated inflation and weak growth in jobs is a conundrum for the Fed," Joseph Carpuso, head of international economics at the Commonwealth Bank of Australia, said in a note to clients. Carpuso expects Fed Chair Jerome Powell to address that dilemma at his upcoming speech next week at the Kansas City Fed's annual central banking conference in Jackson Hole. The remarks will be delivered amid the backdrop of data showing some impact of tariffs on U.S. inflation at a time when the job market is also slowing. "We're all waiting for something to give in terms of volatility," said Alex Hill, managing director at Electus Financial Ltd in Auckland. Hill expects "a slow deterioration in the U.S. data," citing weakening underlying trends in the labor market and the pickup in inflation. A key factor to watch for the greenback would be how the bond market digests increased amounts of government debt issuance in September and October, he said. More immediately, the focus will also be on a summit between U.S. President Donald Trump and Russian leader Vladimir Putin scheduled for Friday in Alaska. Trump said on Thursday that he believes Putin is ready to end his war in Ukraine, but peace would likely require at least a second meeting involving Ukraine's leader. Bitcoin and ether nudged up after dropping about 4% each on Thursday. Bitcoin had at one point touched a record high on Thursday on shifting Fed rate-cut expectations.
Business Recorder
4 days ago
- Business
- Business Recorder
Dollar steadies as hot wholesale inflation data tempers rate cut fervour
SINGAPORE: The dollar held on to previous session gains on Friday after hotter than expected inflation data prompted traders to trim wagers on rate cuts by the US Federal Reserve. The euro and sterling were steady against the dollar after falling 0.5% and 0.3% on Thursday, respectively, while the Japanese yen rose 0.3% to 147.395 following stronger-than-expected GDP data for the second quarter. Overnight, markets had to contend with US producer prices showing the quickest rise in three years in July amid a surge in the costs of goods and services, pointing to a broad pick up in inflationary pressures which analysts say could pose a dilemma for the Fed. The hot measure of producer price inflation followed a comforting consumer inflation outcome earlier in the week which had boosted expectations of policy easing in the world's largest economy and helped lift risk assets across the board. Odds of a 25-basis-point cut by the US central bank retreated slightly after the producer price figures, per CME's FedWatch tool. A combination of supportive data and remarks from the US Treasury Secretary had also given rise to the possibility of an outsized 50-basis-point rate cut in September but those expectations were wiped out entirely after Thursday's data. The wholesale US inflation data 'warranted a move in front-end rates and firmer dollar but a 25-basis-point cut at the Fed's September meeting remains the default setting,' said Chris Weston, head of research at Pepperstone. The 2-year US Treasury yield was steady in early Asia trading at 3.7262% after rising by as much as 5 basis points on Thursday. On the far end of the curve, the 10-year US Treasury yield was at 4.2849% after rising by a similar degree overnight. 'The combination of elevated inflation and weak growth in jobs is a conundrum for the Fed,' Joseph Carpuso, head of international economics at the Commonwealth Bank of Australia, said in a note to clients. Carpuso expects Fed Chair Jerome Powell to address that dilemma at his upcoming speech next week at the Kansas City Fed's annual central banking conference in Jackson Hole. The remarks will be delivered amid the backdrop of data showing some impact of tariffs on US inflation at a time when the job market is also slowing. 'We're all waiting for something to give in terms of volatility,' said Alex Hill, managing director at Electus Financial Ltd in Auckland. Hill expects 'a slow deterioration in the US data,' citing weakening underlying trends in the labour market and the pickup in inflation. A key factor to watch for the greenback would be how the bond market digests increased amounts of government debt issuance in September and October, he said. More immediately, the focus will also be on a summit between US President Donald Trump and Russian leader Vladimir Putin scheduled for Friday in Alaska. Trump said on Thursday that he believes Putin is ready to end his war in Ukraine, but peace would likely require at least a second meeting involving Ukraine's leader. Bitcoin and ether nudged up after dropping about 4% each on Thursday. Bitcoin had at one point touched a record high on Thursday on shifting Fed rate-cut expectations. Reuters
New Straits Times
4 days ago
- Business
- New Straits Times
Dollar steadies as hot wholesale inflation data tempers rate cut fervour
SINGAPORE: The dollar held on to previous session gains on Friday after hotter than expected inflation data prompted traders to trim wagers on rate cuts by the US Federal Reserve. The euro and sterling were steady against the dollar after falling 0.5 per cent and 0.3 per cent on Thursday, respectively, while the Japanese yen rose 0.3 per cent to 147.395 following stronger-than-expected GDP data for the second quarter. Overnight, markets had to contend with US producer prices showing the quickest rise in three years in July amid a surge in the costs of goods and services, pointing to a broad pick up in inflationary pressures which analysts say could pose a dilemma for the Fed. The hot measure of producer price inflation followed a comforting consumer inflation outcome earlier in the week which had boosted expectations of policy easing in the world's largest economy and helped lift risk assets across the board. Odds of a 25-basis-point cut by the US central bank retreated slightly after the producer price figures, per CME's FedWatch tool. A combination of supportive data and remarks from the US Treasury Secretary had also given rise to the possibility of an outsized 50-basis-point rate cut in September but those expectations were wiped out entirely after Thursday's data. The wholesale US inflation data "warranted a move in front-end rates and firmer dollar ... but a 25-basis-point cut at the Fed's September meeting remains the default setting," said Chris Weston, head of research at Pepperstone. The 2-year US Treasury yield was steady in early Asia trading at 3.7262 per cent after rising by as much as 5 basis points on Thursday. On the far end of the curve, the 10-year US Treasury yield was at 4.2849 per cent after rising by a similar degree overnight. "The combination of elevated inflation and weak growth in jobs is a conundrum for the Fed," Joseph Carpuso, head of international economics at the Commonwealth Bank of Australia, said in a note to clients. Carpuso expects Fed Chair Jerome Powell to address that dilemma at his upcoming speech next week at the Kansas City Fed's annual central banking conference in Jackson Hole. The remarks will be delivered amid the backdrop of data showing some impact of tariffs on US inflation at a time when the job market is also slowing. "We're all waiting for something to give in terms of volatility," said Alex Hill, managing director at Electus Financial Ltd in Auckland. Hill expects "a slow deterioration in the US data," citing weakening underlying trends in the labour market and the pickup in inflation. A key factor to watch for the greenback would be how the bond market digests increased amounts of government debt issuance in September and October, he said. More immediately, the focus will also be on a summit between US President Donald Trump and Russian leader Vladimir Putin scheduled for Friday in Alaska. Trump said on Thursday that he believes Putin is ready to end his war in Ukraine, but peace would likely require at least a second meeting involving Ukraine's leader. Bitcoin and ether nudged up after dropping about 4 per cent each on Thursday. Bitcoin had at one point touched a record high on Thursday on shifting Fed rate-cut expectations.
Economic Times
4 days ago
- Business
- Economic Times
Dollar steadies as hot wholesale inflation data tempers rate cut fervour
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The dollar held on to previous session gains on Friday after hotter than expected inflation data prompted traders to trim wagers on rate cuts by the U.S. Federal euro and sterling were steady against the dollar after falling 0.5% and 0.3% on Thursday, respectively, while the Japanese yen rose 0.3% to 147.395 following stronger-than-expected GDP data for the second markets had to contend with U.S. producer prices showing the quickest rise in three years in July amid a surge in the costs of goods and services, pointing to a broad pick up in inflationary pressures which analysts say could pose a dilemma for the hot measure of producer price inflation followed a comforting consumer inflation outcome earlier in the week which had boosted expectations of policy easing in the world's largest economy and helped lift risk assets across the of a 25-basis-point cut by the U.S. central bank retreated slightly after the producer price figures, per CME's FedWatch tool.A combination of supportive data and remarks from the U.S. Treasury Secretary had also given rise to the possibility of an outsized 50-basis-point rate cut in September but those expectations were wiped out entirely after Thursday's wholesale U.S. inflation data "warranted a move in front-end rates and firmer dollar ... but a 25-basis-point cut at the Fed's September meeting remains the default setting," said Chris Weston, head of research at 2-year U.S. Treasury yield was steady in early Asia trading at 3.7262% after rising by as much as 5 basis points on Thursday. On the far end of the curve, the 10-year U.S. Treasury yield was at 4.2849% after rising by a similar degree overnight."The combination of elevated inflation and weak growth in jobs is a conundrum for the Fed," Joseph Carpuso, head of international economics at the Commonwealth Bank of Australia, said in a note to expects Fed Chair Jerome Powell to address that dilemma at his upcoming speech next week at the Kansas City Fed's annual central banking conference in Jackson remarks will be delivered amid the backdrop of data showing some impact of tariffs on U.S. inflation at a time when the job market is also slowing."We're all waiting for something to give in terms of volatility," said Alex Hill, managing director at Electus Financial Ltd in expects "a slow deterioration in the U.S. data," citing weakening underlying trends in the labour market and the pickup in inflation. A key factor to watch for the greenback would be how the bond market digests increased amounts of government debt issuance in September and October, he immediately, the focus will also be on a summit between U.S. President Donald Trump and Russian leader Vladimir Putin scheduled for Friday in said on Thursday that he believes Putin is ready to end his war in Ukraine, but peace would likely require at least a second meeting involving Ukraine's and ether nudged up after dropping about 4% each on Thursday. Bitcoin had at one point touched a record high on Thursday on shifting Fed rate-cut expectations.
Time of India
4 days ago
- Business
- Time of India
Dollar steadies as hot wholesale inflation data tempers rate cut fervour
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The dollar held on to previous session gains on Friday after hotter than expected inflation data prompted traders to trim wagers on rate cuts by the U.S. Federal euro and sterling were steady against the dollar after falling 0.5% and 0.3% on Thursday, respectively, while the Japanese yen rose 0.3% to 147.395 following stronger-than-expected GDP data for the second markets had to contend with U.S. producer prices showing the quickest rise in three years in July amid a surge in the costs of goods and services, pointing to a broad pick up in inflationary pressures which analysts say could pose a dilemma for the hot measure of producer price inflation followed a comforting consumer inflation outcome earlier in the week which had boosted expectations of policy easing in the world's largest economy and helped lift risk assets across the of a 25-basis-point cut by the U.S. central bank retreated slightly after the producer price figures, per CME's FedWatch tool.A combination of supportive data and remarks from the U.S. Treasury Secretary had also given rise to the possibility of an outsized 50-basis-point rate cut in September but those expectations were wiped out entirely after Thursday's wholesale U.S. inflation data "warranted a move in front-end rates and firmer dollar ... but a 25-basis-point cut at the Fed's September meeting remains the default setting," said Chris Weston, head of research at 2-year U.S. Treasury yield was steady in early Asia trading at 3.7262% after rising by as much as 5 basis points on Thursday. On the far end of the curve, the 10-year U.S. Treasury yield was at 4.2849% after rising by a similar degree overnight."The combination of elevated inflation and weak growth in jobs is a conundrum for the Fed," Joseph Carpuso, head of international economics at the Commonwealth Bank of Australia, said in a note to expects Fed Chair Jerome Powell to address that dilemma at his upcoming speech next week at the Kansas City Fed's annual central banking conference in Jackson remarks will be delivered amid the backdrop of data showing some impact of tariffs on U.S. inflation at a time when the job market is also slowing."We're all waiting for something to give in terms of volatility," said Alex Hill, managing director at Electus Financial Ltd in expects "a slow deterioration in the U.S. data," citing weakening underlying trends in the labour market and the pickup in inflation. A key factor to watch for the greenback would be how the bond market digests increased amounts of government debt issuance in September and October, he immediately, the focus will also be on a summit between U.S. President Donald Trump and Russian leader Vladimir Putin scheduled for Friday in said on Thursday that he believes Putin is ready to end his war in Ukraine, but peace would likely require at least a second meeting involving Ukraine's and ether nudged up after dropping about 4% each on Thursday. Bitcoin had at one point touched a record high on Thursday on shifting Fed rate-cut expectations.
