EUR/USD
1.03014
-0.049%
Gold
2909.69
0.061%
Oil
72.540
0.502%
USD/JPY
151.958
-0.025%
GBP/USD
1.23471
-0.164%
GBP/JPY
187.627
-0.177%
Real-time News
On February 11, LBBW analysts said in a report that the Federal Reserve will pay close attention to ensure that inflation expectations do not get out of control. This confirms the view of Deutsche Bank analysts that the Federal Reserve will not cut interest rates again before the end of this year. They said: "If interest rates are really raised next time given inflation risks, the yields of long-term US government bonds may soar."On February 11, Ebury analyst Enrique Diaz-Alvarez said that the outlook for the pound remains relatively good as the Bank of England may be cautious about cutting interest rates. The Bank of England cut interest rates by 25 basis points last week and hinted at concerns about the economic outlook while significantly lowering its economic growth forecast for 2025. However, Diaz-Alvarez believes that continued inflation and wage increases may limit the extent of future interest rate cuts. He said, "We think the market may have exaggerated the extent to which the Bank of England will be able to cut interest rates this year, as the Monetary Policy Committee itself has emphasized that the future direction is still to gradually cut interest rates."Ukrainian gas production facilities were damaged following a Russian attack on the Poltava region.On February 11, Manulife Investment Management analyst Alex Grassino wrote that it may be too early to assess the impact of U.S. tariff policies on the global economy. Investors generally expect that U.S. policies will eventually lead to much smaller and more realistic tariffs than those announced so far. Due to the impact of tariffs, the Federal Reserve may cut its policy rate to a greater extent than expected in the medium term, but the reason for doing so remains unclear and depends on whether the impact of tariffs on the U.S. economy is lower than expected. He said that if economic indicators such as wage growth slow further, the Federal Reserve may reduce its focus on inflation and implement easing policies at a more cautious pace.February 11, traders are waiting for Federal Reserve Chairman Powells testimony in the House of Representatives later today, as well as U.S. inflation data due to be released on Wednesday, for clues on the outlook for U.S. interest rates. "I think the dollars rally has entered a pause mode and is now prone to more of the volatility and sideways movements seen in the past few weeks," said Matt Simpson, senior market analyst at City Index. "(Traders) seem to be waiting for Powells testimony and the CPI report, which is likely to support a stronger dollar this week." Recent remarks by Fed officials have emphasized that they will not rush to cut interest rates further, especially as they wait for further clarity on how Trumps policies will affect economic growth and inflation. Futures markets show that the Fed will cut interest rates by less than 40 basis points by the end of the year. ANZ analysts said: "Fed members agreed that in an environment where economic growth is resilient, inflation is above target, policy rates are close to neutral, and policy uncertainty is rising, the Fed can be patient in further easing policy."
