-
The USD/JPY pair extends the rally to around 153.05 during the early Asian session on Friday, bolstered by a firmer US dollar (USD). The Greenback edges higher to its highest since February against the Japanese Yen (JPY) amid the lack of progress around the US government shutdown.
-
Bessent says he expects a rebalancing ‘soon’, where India buys less Russian oil
US Treasury Secretary Bessent
- Soon we are going to see rebalancing where India buys less Russian oil
- India is going to start rebalancing over next few weeks and months in favor of U.S. oil
- Argentina’s leader will be coming to Oval Office next Tuesday
- This is not a bailout for Argentina
- Argentine peso is undervalued
- Exchange Stabilization Fund will not lose money in assisting Argentina
- Argentina is rich in minerals, committed to U.S. companies coming into that sector
- Says he believes the Chinese will come back at the end of the season and buy soybeans
- If it weren’t for shutdown, we would have announced support for farmers
more to come
This article was written by Eamonn Sheridan at investinglive.com.
-
Escalation – Trump to deploy US boots on the ground in Middle East, but not in Gaza
The United States will send 200 troops to form the core of a multinational task force aimed at stabilising Gaza, though none will operate inside the enclave, two senior US officials said.
The unit will coordinate from an undisclosed regional base, working alongside forces from Egypt, Qatar, Turkey, and likely the UAE. The mission’s focus is to establish a joint control centre to prevent clashes and support Israeli coordination without direct US involvement in Gaza.
Officials said Washington hopes the task force will help cool regional tensions and pave the way for new diplomatic normalisation efforts between Israel and Arab states. Potential future deals could include Saudi Arabia, Indonesia, Mauritania, Algeria, Syria, and Lebanon.
—
The deployment signals Washington’s push for regional stability without direct military engagement. While limited in scope, for now at least, the move may ease geopolitical risk premiums if it supports progress toward wider Israel-Arab normalisation.
This article was written by Eamonn Sheridan at investinglive.com.
-
Funding bills to end government shutdown fail in Senate vote for seventh time
Lawmakers on both sides remain dug in, showing no indication that they are open to yielding on their demands. -
ICYMI: NY Fed’s Williams backs further rate cuts to shore up labour market
New York Federal Reserve President John C. Williams said he supports more interest rate cuts this year to protect a softening labour market, even though inflation has risen above the Fed’s 2% goal in recent months.
In an interview with The New York Times, Williams said the economy is not near recession but signs of slowing job growth and cautious corporate hiring justify attention. As a permanent voting member of the FOMC and close ally of Chair Jerome Powell, his stance carries weight within the Fed.
Williams argued the central bank has room to support employment because inflation pressures from President Trump’s tariffs are likely to fade. He expects inflation to rise toward 3% while unemployment edges above 4%, conditions under which modest rate cuts could help steady the economy.
Despite the government shutdown delaying key data such as the jobs and CPI reports, Williams said the Fed could still act, relying on private surveys and internal indicators. He described monetary policy as “modestly restrictive” and said the goal is to bring rates back to a neutral level around 3%.
Williams defended the Fed’s independence amid ongoing political pressure, saying its focus remains on achieving both price stability and maximum employment. He dismissed criticism of the Fed’s past asset purchases, noting they helped avoid a deeper downturn.
—
Williams’ remarks reinforce expectations for additional Fed easing this year. His focus on labour-market fragility over short-term inflation risks suggests a cautious policy bias, though ongoing political scrutiny could test Fed independence.
Earlier headlines on this here:
This article was written by Eamonn Sheridan at investinglive.com.
-
Former Fed Governor Larry Lindsey withdraws name for Fed chair
Former U.S. Federal Reserve Governor Larry Lindsey has withdrawn his name from the list of candidates for the next potential chair of the Federal Reserve. -
RBA’s Bullock says services inflation remains a little sticky
Reserve Bank of Australia (RBA) Governor Bullock said on Friday that services inflation remains a little sticky. -
EUR/USD crashes below 1.16 as political turmoil in France, boost USD
The EUR/USD tumbles below the 1.1600 figure, losing over 0.50% as the US Dollar extended its weekly rally, posting gains of more than 1.70% against a basket of six currencies, the DXY, sponsored by a risk-off mood. -
Reserve Bank of Australia Governor Bullock says services inflation remains a little sticky
Reserve Bank of Australia Governor Bullock and Assistant Governor (Financial Markets) Christopher Kent are giving testimony in parliament this morning Sydney time
- Bullock says services inflation remains a little sticky
- Labour market still a little bit tight, could be close to balance
- Labour market in a good place
- Consumption is beginning to recover
- Q2 inflation was a little higher than expectations, but moving in right direction
- Must be cautious as the monthly CPI data are volatile
- Dwelling costs and services are a little higher than expected
- Risks are relatively balanced on inflation
- We remain data driven on policy
- Forward indicators of labour market have been broadly stable
more to come
—
Background to this …. at its September meeting, the Bank held its cash rate steady at 3.60%, following three cuts earlier in 2025. The decision, while broadly expected, carried a notably “hawkish hold” tone, with the bank flagging risks that inflation in the September quarter might come in stronger than expected. As a result, market bets on a November cut weakened significantly.
- market pricing implies around a 50% chance of a quarter-point reduction in the cash rate at the RBA’s next meeting in November
- close to 60% chance of a cut in December
This article was written by Eamonn Sheridan at investinglive.com.
-
ICYMI – JP Morgan’s Dimon warns of looming US stock-market correction
JP Morgan Chase chief executive Jamie Dimon has warned that US equities face a greater risk of a steep correction than investors currently expect, telling the BBC he is “far more worried than others” about an eventual downturn over the next six months to two years.
Dimon said markets appeared overheated, fuelled by AI optimism and loose fiscal spending, while global uncertainty from geopolitical tensions and re-armament added to risks. “The level of uncertainty should be higher in most people’s minds than normal,” he said.
Although he believes artificial intelligence will ultimately deliver lasting gains, Dimon cautioned that many AI-related investments will “probably be lost,” drawing parallels with the dot-com boom and bust.
On policy and politics, Dimon said he remained “a little worried” about inflation but expected the Federal Reserve to stay independent despite Trump’s repeated attacks on Chair Jerome Powell. He described the US as “a little less reliable” on the world stage, citing global tension and military readiness as new priorities: “We should be stockpiling bullets, guns and bombs.”
Dimon also hinted at progress toward easing US tariffs on India, saying he had spoken with Trump administration officials who were keen to bring India “closer” and roll back penalties linked to its oil trade with Russia.
—
Dimon spoke with the BBC a day or so ago, but his comments have caught more interest in recent hours as stocks slid a little. If you are ever in any doubt that stock market moves tend to drive what is seen as intersting in the news, don’t be.
This article was written by Eamonn Sheridan at investinglive.com.
End of content
End of content
