Fed's Barkin: Fed has more data to see before next rate decision

Eren Sengezer FXStreet

In an interview with CNBC on Friday, Federal Reserve Bank of Richmond President Thomas Barkin said that it was welcome to see lessening pressure in jobs data and noted that the labor market was in better balance, per Reuters.

Key quotes

"Fed has more data to see before next rate decision."

"Focused on seeing inflation come down."

"I'd like to think markets are responding to data."

"I'm not sure 25 basis points is answer to all word's problems."

"Some evidence price setters see declining power, but many still have it."

"Lower-end consumers are changing how they spend."

"High-end consumers are not cutting back."

"Really pleased by recent productivity data."

"Rate cuts still a ways off in my mind."

"Hope and expect to see more progress lowering inflation."

"I don't know if Fed has reached peak of hike cycle."

"Big risks to over and under tightening monetary policy."

"So far, Middle East turmoil hasn't affected data."

Market reaction

The US Dollar Index stays on the back foot following these comments and was last seen losing 0.83% on the day at 105.28.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.