With the future of British Prime Minister Keir Starmer uncertain, hedge funds are betting on further weakness in the pound. On Monday, the pound fell 0.5% against the euro to 0.8725, a new low since January 22. This followed the resignation of Starmer's chief of staff on Sunday, who was unhappy with Peter Mandelson's appointment as ambassador to the United States, further escalating the political crisis in the UK. Last week, the pound was already...
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Oil Prices Fall as Middle East Tensions Ease, Supply Risks Reduced
Oil prices fell as tensions eased in the Middle East, reducing the likelihood of near-term supply disruptions. Brent crude fell below $68 a barrel, after falling nearly 4% the previous week, while West Texas Intermediate crude approached $63 a barrel. Iran and the United States held talks in Oman on Friday in an attempt to de-escalate tensions over Iran's nuclear program, with Tehran calling the talks a "step forward." President Donald Trump indicated that another...
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ECB President Piero Cipollone said the ECB will assess the impact of the euro’s strength in March.
The ECB will assess the impact of the recent euro's rise on consumer price growth in its quarterly forecasts to be released in March, but Executive Board member Piero Cipollone told the Cyprus news agency that recent moves have been rather limited. According to a record published on the ECB's website on Sunday, an Italian policymaker said officials consider the exchange rate as one of the factors “forecasting inflation dynamics.” “We will see how the...
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FXCG Market Summary: US Stock Index Futures Fall, Tech Sell-off Likely to Continue
Global stock market sell-off is expected to intensify further on Friday, after sharp declines in US tech stocks and cryptocurrencies dampened risk appetite, prompting investors to turn to US Treasuries. US stock index futures opened more than 0.6% lower on Friday, following a broad decline in Wall Street indices, with the Nasdaq 100 suffering its worst three-day drop since the April crash. The benchmark index has lost more than $1 trillion in market capitalization since...
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Federal Reserve Chair Lisa Cook Says Central Bank Must Maintain Inflation Credibility
Federal Reserve Governor Lisa Cook said the central bank must bring inflation back to its target level in the near future to maintain its credibility. Speaking at an event in Miami on Wednesday, Cook said, "Unless I see stronger evidence that inflation is consistently falling back to its target level, my focus will be here, barring any unexpected changes in the labor market." Fed policymakers kept the benchmark interest rate unchanged last week in a...
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