Markets continue to tread water as Powell remains cautious on rate cuts
Fed Chair Jerome Powell commented last night that the Fed needs greater confidence that inflation is moving toward its 2.0% target and that the Fed is not comfortable cutting rates right now. However, Powell expressed concern that a higher-for-longer interest rate policy could pose a risk to economic growth as he highlighted the already softer labour market and recent weaker economic data.
Tomorrow’s key US CPI numbers will be closely watched with markets expecting
Core inflation to remain somewhat sticky at 3.4%. The Dollar firmed marginally overnight and is trading flat at 1.0818 against the Euro and at 1.2795 against the Pound this morning. The Rand has opened marginally softer at 18.15 but remains stuck in a narrow 18.05/18.25 range for now.
Gold trading a touch higher, but Brent falls as Chinese inflation data disappoints
Gold is trading around 0.2% firmer at $2,368 after closing on a softer note last night. Chinese CPI and PPI data both came out below expectations once again, further raising concerns over the economy’s recovery. Brent crude has dipped to $84.50, while WTI is down at $81.25.