EUR/USD
1.16810
0.403%
Gold
4598.90
2.026%
Oil
58.696
0.133%
USD/JPY
157.926
0.030%
GBP/USD
1.34688
0.468%
GBP/JPY
212.713
0.500%
Real-time News
January 12th - JPMorgan Chases securities trading division stated that the Trump administrations latest challenges to the Federal Reserves independence pose a threat to the US stock market, at least in the short term. News of a potential criminal investigation into the Fed impacted US markets Sunday night, causing stock index futures and the dollar to fall, with funds flowing into safe-haven assets such as gold. Andrew Taylor, JPMorgan Chases global head of market intelligence, said, "While macroeconomic and corporate fundamentals support a tactical bullish stance, the risks to the Feds independence are creating downward pressure on the market, so we remain cautious in the very short term. The risks surrounding the Feds independence could push US markets to underperform in the short term."On January 12th, Jane Foley, head of foreign exchange strategy at Rabobank, stated in a report that the US dollar is expected to face greater volatility this year as political pressure on the Federal Reserve rises. Markets are concerned that the Fed may lose its independence due to government demands for interest rate cuts and pressure on current Chairman Powell. However, Foley pointed out that some argue that with inflation remaining high, other FOMC members could provide a check on a Fed chairman who favors rate cuts. Foley stated that uncertainty surrounding the Feds future credibility may put downward pressure on the dollar, "but not to the point of triggering an out-of-control decline."Mexican President Simbaum: Had a “good conversation” with US President Trump.Market news: Trump praises Meta Platforms (META.O) for hiring Powell McCormick.On January 12th, UBS Global Wealth Management Chief Economist Paul Donovan wrote that a criminal investigation into the current Federal Reserve Chairman could ultimately help strengthen the central banks independence. Market reactions indicate that investors are increasingly concerned about the Feds ability to manage interest rates without political interference. While asset prices have not fluctuated significantly overall, long-term US Treasury yields have risen and the dollar has weakened. Donovan stated that Powells hawkish stance may mean he is unwilling to resign from his position as a Fed governor this year; meanwhile, there are signs that the US Senate may delay confirming the nomination of a new Fed Chairman. He also pointed out that market concerns about central bank independence could translate into a hawkish force in future monetary policy decisions.
