Atlanta Federal Reserve Bank President Bostic: Inflation has fallen

Ross J Burland FXStreet

Reuters reported that the Atlanta Federal Reserve Bank President Raphael Bostic, who supports standing pat on the Fed's policy rate, on Thursday said it is clear US inflation has fallen, though in recent months the signals have been less clear.

“I think it's unambiguous that inflation has fallen considerably," Bostic said at a dinner in Dublin, Ireland. "In these past six months signals have been more ambiguous. That’s real but I do think there are some shoots of green underneath it.”

US Dollar update

It's been a strong week of data for the US and was topped off with Weekly Initial Jobless claims that decreased 26,000 to a seasonally adjusted 239,000, the largest drop in 20 months and below the expectation of 265,000 by economists polled by Reuters.

Federal Reserve's Chair Jerome Powell also indicated the central bank is likely to resume its rate hike path and this is weighing on its FX counterparts.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD remains depressed near 0.6950 after RBA minutes

AUD/USD attracts follow-through selling during Tuesday’s Asian session, looking to extend the overnight rejection slide from 0.7000, or a two-week top, following the release of RBA meeting Minutes. The US Dollar retains a bullish undertone near its highest level since April 2025 as energy-driven inflation risks keep December Fed rate hike bets firmly on the table. Adding to this, geopolitical risks further underpin the safe-haven USD.

USD/JPY extends retreat below 158.50 as intervention risks loom

USD/JPY is dropping below 158.50 in the Asian session on Tuesday, snapping a two-day winning streak and pulling back from an over two-week top touched the previous day, despite Japan's soft PPI inflation print. Bulls turn cautious amid speculation that authorities will step in to prop up the Japanese Yen, which, in turn, weighs on the pair.

Gold: Bears struggle to breach below $4,150

Gold now gives away its initial gains and resumes its decline, revisiting the $4,160 region per troy ounce on Tuesday. The precious metal’s pullback comes despite the fresh downward trend in the Greenback in combination with a mixed performance of US Treasury yields across the board and easing tensions on the geopolitical front.

Bitcoin rebounds despite cautious sentiment

Bitcoin rebounds over 2%, trading above $83,500 on Tuesday, recovering the previous day’s losses. Persistent geopolitical tensions and mixed signals continue to weigh on risk appetite, keeping investors cautious despite BTC’s recovery.

US – Midterm update: Democratic lead holds three weeks before election

With three weeks until the US midterm election on 3 November, prediction markets are more or less unchanged. Polymarket continues to put the probability of a Democratic sweep at 60-65%. The House is seen as a fairly safe Democratic win, with a probability of around 90%.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?