The post GBP/USD holds near 1. 3160 as traders wait for NFP and UK CPI appeared com. The Pound Sterling is steady on Tuesday as traders shift worried about the economic outlook in the US and market participants eyeing crucial NVIDIA earnings for Q3, keeping US equity markets in the red. The GBP/USD trades at 1. 3156 virtually unchanged. Sterling trades steady despite softer US data and rising Fed cut expectations, with UK inflation and Autumn Budget in focus The US Department of Labor revealed that Initial Jobless Claims for the week ended October 18 were 232K, while continuing claims rose to 1. 957 million. GBP/USDs was muted on its release with traders eyeing Nonfarm Payrolls data on Thursday. Expectations that the Federal Reserve would cut rates at the December meeting stand at 55%, higher than last week’s below 50% chances, according to Prime Market Terminal data. Alongside this, traders are awaiting British inflation figures, which could potentially impact the Bank of England’s path on interest rates. Money markets are expecting a rate cut with odds standing at 83%. Recently BoE Chief Economist Huw Pill said measures related to inflation had not slowed as much as he would expect in the past. He said that “I think policymakers should be cautious about over-interpreting the latest news in data, because there is a lot of noise in the data flow, and partly because of some of the challenges our colleagues in the Office for National Statistics have faced.” Traders are also awaiting the release of the Autumn Budget in November 26. Chancellor Rachel Reeves is expected to raise tens of billions of pounds to meet her fiscal goals, according to analysts. GBP/USD Price Forecast: Technical outlook The GBP/USD daily chart shows the pair consolidating after forming back-to-back doji’s below the 20-day Simple Moving Average (SMA) at 1. 3185, acting as key resistance. A breach of the latter clears the path to.
Tag: fed
Fed’s Miran says stablecoin surge could help push interest rates lower
The post Fed’s Miran says stablecoin surge could help push interest rates lower appeared com. Fed Governor Stephen Miran on Friday suggested that surging demand for dollar-denominated stablecoins could help push U. S. interest rates lower. In a speech delivered for an audience of economists in New York, the central bank official and appointee of President Donald Trump said the flood of crypto tokens pegged to the dollar could tamp down what economists refer to as “r-star,” or the “neutral” rate of interest that neither pushes nor impedes growth. If that happens, he said, the Fed might need to lower its own policy rate to avoid unintentionally slowing the economy. “Stablecoins may become a multitrillion-dollar elephant in the room for central bankers,” Miran said. “Stablecoins are already increasing demand for U. S. Treasury bills and other dollar-denominated liquid assets by purchasers outside the United States, and this demand will continue growing.” Citing prior research, Miran said stablecoin growth could push the Fed’s benchmark rate down by 0. 4 percentage point. During his short time on the Fed board, Miran has advocated aggressive rate cuts, in part because he thinks the neutral rate is considerably lower than most of his colleagues assume. His latest remarks extend that argument into the world of digital finance, suggesting that the rise of stablecoins could structurally lower borrowing costs for years to come. Previously, his arguments have been focused largely on moderating inflation and the importance of the Fed not impeding economic growth with higher rates. The stablecoin dissertation adds another wrinkle to the case for easier policy. “Even relatively conservative estimates of stablecoin growth imply an increase in the net supply of loanable funds in the economy that pushes down” the neutral rate, he said. If neutral is lower, he added, “policy rates should also be lower than they would otherwise be to support a healthy economy. A failure of the central.