Tag Archives: 25-basis-point

USD/CAD steadies near 1.4010 as US government shutdown ends

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The post USD/CAD steadies near 1. 4010 as US government shutdown ends appeared com. USD/CAD halts its four-day losing streak, remaining flat and trading around 1. 4010 during the Asian hours on Thursday. The pair may gain ground as the US Dollar (USD) could further appreciate amid improving sentiment, driven by the end of the United States (US) government shutdown. Reuters reported that US President Donald Trump signed the government funding bill on Thursday, marking the official end of the longest government shutdown in US history. The bill requires the Government to resume normal operations and calls for direct payment for individuals to purchase healthcare. Additionally, the US Dollar may also gain support from hawkish Fedspeak, which decreased the odds of the Federal Reserve (Fed) rate cut in December. The CME FedWatch Tool shows markets pricing in nearly a 60% chance of a 25-basis-point Fed rate cut in December, down from 67% a day ago. Atlanta Fed President Raphael Bostic addressed economic trends at the Atlanta Economic Club on Wednesday. Bostic cautioned that easing policy too soon could “feed the inflation beast,” while noting that a sharp downturn in the labor market is unlikely in the near term. The downside of the USD/CAD pair could be restrained as the Canadian Dollar (CAD) may gain on a cautious tone surrounding the Bank of Canada (BoC) policy outlook. Rate markets expect the BoC to keep interest rates unchanged at least through the end of 2026, though that could change if economic conditions worsen. Canadian Dollar FAQs The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment whether investors are taking. Continue reading USD/CAD steadies near 1.4010 as US government shutdown ends→

Gold steadies near $4,000 as US shutdown, layoffs concerns lift demand

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The post Gold steadies near $4,000 as US shutdown, layoffs concerns lift demand appeared com. Gold price advances on Thursday after reaching a daily high of $4,019, but retreats below the $4,000 mark even though the US Dollar and US Treasury yields tumbled. At the time of writing, XAU/USD trades with gains of over 0. 10% at around $3,985. Bullion steadies after brief pullback, supported by weaker Dollar, falling yields, and renewed political and trade uncertainty US Dollar weakness was the main driver that kept the yellow metal underpinned during the day, as the US government shutdown could extend further, said the Republican House Leader Mike Johnson, who added that he’s less optimistic about the shutdown ending. Markets were also shaken by the release of the Challenger report, which revealed that companies slashed over 150, 000 jobs in October, marking the biggest reduction for the month in more than 20 years. The news triggered a reprice of a rate cut by the Federal Reserve (Fed) at the December meeting. Meanwhile, the US Supreme Court is growing skeptical about US President Donald Trump’s tariffs, as reported by Bloomberg, that added, “Businesses and countries suffering from the duties and looking for resolution, though, are set for months of uncertainty.” Consequently, Bullion seems poised to resume its uptrend as it usually performs well in uncertain and low-interest-rate environments. Aside from this, Federal Reserve (Fed) officials are crossing the wires, led by Cleveland’s Fed Beth Hammack, sticking to her hawkish rhetoric. At the same time, Fed Governor Michael Barr was slightly more neutral, echoing some comments by New York Fed John Williams, who said that neutral rates would be around 1%. Daily market movers: Gold surges as US yields drop The US Dollar Index (DXY), which tracks the performance of the American currency against six other currencies, slumps 0. 42% down to 99. 73. US Treasury yields are also plunging, with the 10-year. Continue reading Gold steadies near $4,000 as US shutdown, layoffs concerns lift demand→