Latest news with #DallasFed
See - Sada Elbalad
6 days ago
- Business
- See - Sada Elbalad
Local Market Calm, But Retail Sales See Seasonal Boost
Waleed Farouk The local bullion market continues to experience subdued activity due to a relative calm in global markets. Retail outlets have largely relied on recycled gold for inventory, especially as bullion traded at slightly lower exchange rates compared to the official rate — about 30 piastres lower in recent days. However, with Thursday's trading session, the gap narrowed, bringing market exchange rates in line with official rates as the sector moved toward exporting raw gold to generate foreign currency liquidity. On the retail front, demand is seeing a seasonal uptick with the approach of the summer wedding and engagement season. Market estimates suggest that around 30% of current demand is directed toward gold jewelry, while the remaining 70% is focused on bullion for savings or investment, particularly with prices stabilizing in the 4620–4660 EGP range for 21-karat gold since the beginning of July. Stronger Dollar Dampens Gold Demand The U.S. dollar regained strength following comments from former President Donald Trump, who denied intentions to dismiss Fed Chair Jerome Powell. The reassurance eased market anxiety and pushed the dollar toward its highest level since June 23. Simultaneously, several Federal Reserve officials signaled caution regarding premature monetary easing. Dallas Fed President Lorie Logan voiced concerns over inflationary risks stemming from tariffs, while New York Fed President John Williams stated that the current economic conditions do not justify immediate policy changes. These remarks prompted markets to dial back expectations for a rate cut. The likelihood of a 25-basis-point rate cut in September dropped to 63%, down from 78% a week ago, according to CME FedWatch data. Geopolitical Tensions Offer Underlying Support Amid Fragile Balance Despite the decline, gold remains supported by geopolitical tensions and global trade uncertainties, particularly after Trump announced new tariffs on 25 countries effective August 1 — a move that heightens global anxiety and renews safe-haven interest in gold. On the data front, U.S. Producer Price Index (PPI) data came in below expectations, showing no monthly change for June versus a forecast of +0.1%. Year-on-year growth was 2.3%, below the expected 2.5%. The core PPI, excluding food and energy, also registered flat monthly and 2.6% annual growth, indicating softening price pressures from the supply side. On the flip side, industrial production rose by 0.3%, surpassing forecasts and suggesting economic activity remains resilient despite easing inflation. Nonetheless, Tuesday's Consumer Price Index (CPI) report showed core inflation still running hotter than expected at 2.9%, reinforcing pressure on gold due to its inverse relationship with interest rates and the dollar. the gold market is navigating a fragile equilibrium, caught between dollar strength and potential rate stability on one hand, and global tensions and trade barriers on the other. The next moves in gold will likely hinge on economic and political cues from Washington over the coming weeks. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language Sports Get to Know 2025 WWE Evolution Results
Business Standard
7 days ago
- Business
- Business Standard
Dollar index firm near 3 and half week high; US retail sales, Fed speakers in focus
The dollar index firmed up further near a 3 and half week high on Thursday following sharp moves in the previous session amid reports of President Donald Trump considered removing Fed Chair Jerome Powell. Meanwhile, US data showed PPI in June dipped from 2.6% to 2.3% on year, below estimates of 2.5%. Excluding volatile items, PPI cooled from 3% to 2.6%, below forecasts of 2.7%. A day earlier US CPI rose 2.7% year-over-year in June, support the case of the Federal Reserve (Fed) maintaining its benchmark overnight interest rate unchanged. Further, Dallas Fed President Lorie Logan said on Tuesday that the Fed will probably need to leave interest rates where they are for a while longer to ensure inflation stays low in the face of upward pressure from the Trump administration's tariffs. US treasury yields climbed to 4.48% while the dollar index that measures the greenback against a basket of currencies added around 0.3% to 98.37 at the time of writing. The greenback stays firm ahead of retail inflation data, the weekly unemployment claims and also in focus are Fed speakers for further cues. Among basket currencies, EURUSD and GBPUSD have both lost recent momentum as dollar regains strength and are quoting lower at $1.1634 and $1.3391 respectively.
Business Standard
16-07-2025
- Business
- Business Standard
INR pressured by firm dollar amid tariff uncertainty
The Indian rupee declined 18 paise against the US dollar to close at 85.94 (provisional) on Wednesday, tracking a strengthening American currency against major crosses overseas amid uncertainties over the India-US trade pact. Dollar index firmed up near a three-week high as investors awaited the latest producer price index report after hot inflation data pared back expectations of Fed interest rate cuts this year. Meanwhile, Dallas Fed President Lorie Logan supported this view earlier on Wednesday, defending the need to keep interest rates at the current level for some time, to keep inflation at low levels amid the upside risks stemming from Trumps tariffs. However, renewed foreign capital inflows and sliding global crude prices supported the domestic unit. Indian shares recovered from an early slide to end marginally higher on Wednesday as the dollar pulled back slightly and U.S. Treasury yields retreated after rising in the previous session. The benchmark S&P/BSE Sensex ended a choppy session up 63.57 points, or 0.08 percent, at 82,634.48, while the broader NSE Nifty index closed at 25,212.05, up 16.25 points, or 0.06 percent, from its previous close. At the interbank foreign exchange, the rupee opened weak at 86.02 against the dollar. It traded in the range of 85.74-86.05 during the day before closing at 85.94.
Yahoo
16-07-2025
- Business
- Yahoo
Fed's Logan says her base case calls for holding rates steady a while longer
By Ann Saphir (Reuters) -The U.S. central bank will probably need to leave interest rates where they are for a while longer to ensure inflation stays low in the face of upward pressure from the Trump administration's tariffs, Dallas Federal Reserve Bank President Lorie Logan said on Tuesday. "My base case is that we'll need to keep interest rates modestly restrictive for some time to complete the work of returning inflation sustainably to the 2% target," Logan said in remarks prepared for delivery to the World Affairs Council of San Antonio. "It's also possible that some combination of softer inflation and a weakening labor market will call for lower rates fairly soon," she said, noting that tariffs may not push up inflation as much or as persistently as expected, and that slight signs of cooling in recent labor market data along with pessimism among businesses and households could portend a worsening outlook for economic activity. The Fed has kept its policy rate in the 4.25%-4.50% range since last December. Most policymakers have signaled they want to wait at least a couple more months before resuming rate cuts because they are worried that higher prices from tariffs could undo what has been several months of relatively benign inflation data. The rise in consumer prices in June suggests that inflation by the Fed's targeted measure -- the 12-month increase in the price index for personal consumption expenditures, which in May was 2.3% -- will "probably move up a bit," Logan said. "I'd like to see low inflation continue longer to be convinced," she said. At the same time, the labor market is solid, the stock market is at near all-time highs, and fiscal policy appears set to be a "tailwind" for growth, she said. Earlier this month Congress passed President Donald Trump's domestic policy bill that makes his 2017 tax cuts permanent, among other measures. "All this adds up, for me, to a base case in which monetary policy needs to hold tight for a while longer to bring inflation sustainably back to target — and in this base case, we can sustain maximum employment even with modestly restrictive policy," Logan said. Cutting rates too soon, she said, would risk deeper economic scars and a longer road to price stability. Cutting rates too late risks allowing the labor market to weaken more, though the Fed would "have the option of cutting rates further to get employment back on track," Logan said. For now, Logan said, monetary policy is "well positioned," a phrase that Fed Chair Jerome Powell has repeatedly used to describe the Fed's readiness to act when the data signal it is time. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
10-07-2025
- Business
- Bloomberg
Fed's Waller Backs Balance Sheet Runoff, Shift in Composition
Federal Reserve Governor Christopher Waller said the US central bank should continue reducing the size of its balance sheet, including shifting its composition to include more short-term assets, but that it likely doesn't need to fall too much. 'I believe we can likely continue to let a share of maturing and prepaying securities roll off our balance sheet for some time, reducing reserve balances,' Waller said Thursday in remarks prepared for an event hosted by the Dallas Fed.
