ECB’s Panetta: Must remain pragmatic and data-driven in setting policy rate

Dhwani Mehta FXStreet

European Central Bank (ECB) policymaker Fabio Panetta said on Wednesday, the central bank “must remain pragmatic and data-driven in setting the policy rate.”

Further comments

ECB should now focus more on inflation expectations than estimated neutral level in setting rates.

As inflation falls and rates near neutral, uncertainty becomes more of a problem.

Market reaction

At the press time, EUR/USD is trading flat at around 1.0780.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD recovers toward 0.7000 amid improving mood

AUD/USD is firming up toward 0.7000 in Asia on Tuesday, helped by improving market mood. A pause in the US Dollar rebound also aids the pair's upside. However, geopolitical risks and caution ahead of AI tech earnings report could limit the pair.

USD/JPY flatlines near 158.50 as markets seek direction

USD/JPY steadies around 158.50 in the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index inflation data later on Friday. Meanwhile, elevated US bond yields provide some support to the US Dollar against the Japanese Yen.

Gold sellers remain in control while below 21-day SMA

Gold is falling for the third straight day on Tuesday, having run into sellers on several occasions at the $4,200 level. The bullion awaits a clear trading impetus amid uncertainty about the US Federal Reserve’s interest rate outlook and looming geopolitical risks.

Bitcoin profit-taking cools as spot demand stays weak, Glassnode says

Glassnode says Bitcoin (BTC) selling pressure has eased but spot demand stays weak near $82,000. Supply in profit fell to 68.2% as options expiry looms. Blockchain analytics firm Glassnode shared in a Monday report that Bitcoin selling pressure has eased, but spot market demand remains weak, leaving the cryptocurrency without a clear catalyst for recovery.

Markets now see no hike in October, but inflation is still a major concern

US inflation has returned to the spotlight after the latest Consumer Price Index (CPI) and Producer Price Index (PPI) reports showed a significant acceleration in price pressures. The data raised concerns that the Federal Reserve may need to maintain restrictive monetary policy for longer, pushing interest-rate expectations higher and putting pressure on stocks and gold.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.