Fed’s Daly: We have to work on price stability without overreacting

Agustin Wazne FXStreet

Mary Daly, President of the Federal Reserve (Fed) Bank of San Francisco, said on Bloomberg TV on Thursday that she doesn’t see evidence that longer-run inflation expectations are up. She also claimed that wage rises are consistent with the overall 2% inflation.

Key Quotes:

Policymaker speeches clarify how FOMC could respond

Forecast scenarios may aid communication of rate outlook.

Wage rises consistent with overall 2% inflation.

I don't see evidence that longer-run inflation expectations are up.

We have to work on price stability without overreacting.

Producers and sellers still hesitant to pass on higher prices.

If conflict ends, prior positive dynamics could return.

Much depends on how long Iran conflict lasts

Real FOMC signal is everyone agreed to hold rates.

Phrasing of statement less important than FOMC action

Public knows Fed is committed to price stability.”

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.08%	0.03%	0.17%	-0.03%	-0.03%	-0.07%	-0.02%
EUR	0.08%		0.10%	0.26%	0.06%	0.05%	-0.02%	0.06%
GBP	-0.03%	-0.10%		0.13%	-0.06%	-0.05%	-0.12%	-0.05%
JPY	-0.17%	-0.26%	-0.13%		-0.21%	-0.20%	-0.31%	-0.18%
CAD	0.03%	-0.06%	0.06%	0.21%		0.00%	-0.06%	0.00%
AUD	0.03%	-0.05%	0.05%	0.20%	-0.01%		-0.07%	0.00%
NZD	0.07%	0.02%	0.12%	0.31%	0.06%	0.07%		0.07%
CHF	0.02%	-0.06%	0.05%	0.18%	-0.01%	-0.00%	-0.07%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

AUD/USD flatlines near 0.6965 as less hawkish RBA counters USD weakness

AUD/USD holds steady above a two-week low, trading near 0.6965 in the Asian session on Wednesday as early midterm election results heighten political uncertainty and weigh heavily on the US Dollar. Moreover, reviving safe-haven demand triggers a fresh leg down in US bond yields, offsetting Fed hike bets and exerting additional pressure on the buck. However, a less hawkish RBA caps the Aussie.

USD/JPY declines below 158.00 as USD weakens on midterm election results

USD/JPY comes under heavy selling pressure on Wednesday, dropping below 158.00 during the Asian session as the US Dollar slumps to a one-month low amid heightened political uncertainty after early US midterm vote counts. Moreover, the prospect of gridlock in Washington drives safe-haven flows, triggering a fresh leg down in US bond yields and further weighing on the buck.

Gold clings to gains near weekly top, comfortably above $4,000 as US elections hit USD

Gold clings to strong intraday gains near the weekly high, trading comfortably above the $4,000 psychological mark during early European session amid a broadly weaker US Dollar. Democrats’ wins in the House and Senate raise the prospect of gridlock in Washington. Moreover, heightened political uncertainty drove investors to safe-haven assets, exerting downward pressure on US bond yields. This is seen weighing on the Greenback and supporting the precious metal.

Bitcoin tests critical support, Ethereum struggles below resistance, XRP extends losses

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) remain under pressure on Wednesday as bearish momentum continues to weigh on prices. BTC approaches key support around $76,466, and a decisive close below could open the door to deeper losses. Meanwhile, ETH struggles below key resistance while XRP faces rejection at the upper trendline of a falling channel pattern, all hinting at deeper losses.

ADP Employment Report expected to show slower job growth in October

The Automatic Data Processing Research Institute is due to release October’s private-sector employment report on Wednesday. The market consensus anticipates a moderate slowdown in job creation, with the ADP Employment Change expected to show 69K new private jobs in October, down from 90K in September.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.