Yellen and Warsh out of Fed race - Politico

Ross J Burland FXStreet

While Politico was reporting yesterday that Trump is not quite ready to announce a new Fed chair this week, news hit the wires that there are reports that Fed chair Yellen, whose term is up on the 3rd of Feb 2018, is out of the race for Fed Chair – Politico citing source again

(Kevin Warsh also reported to be out of the race).

There was a couple of headlines yesterday around who Trump might be selecting for Fed chair as well. While dove Powell still has a big lead at the bookies, the director of the National Economic Council in the Trump administration, Gary Cohn, has been ruled out, as Trump needs him to concentrate on tax reform. On Monday, it was also reported that Trump reportedly took a straw poll at his tax reform meeting with John Taylor supposedly the winner.

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.

EUR/USD edges higher to near 1.1600 on US-Iran Strait of Hormuz deal

The EUR/USD pair trades in positive territory around 1.1590 during the early Asian session on Tuesday. A deal to reopen the Strait of Hormuz spurred a rally in riskier assets such as the Euro against the US Dollar. Traders await the US Federal Reserve interest rate decision later on Wednesday.

GBP/USD retreats from tops, back to 1.3420

GBP/USD keeps its advance past the 1.3400 yardstick at the beginning of the week. In the meantime, Cable continues to draw support from improved market sentiment following reports that the US and Iran have reached a framework agreement aimed at ending the conflict and reopening the Strait of Hormuz.

$4,400: Gold sellers set to retain control whilst below this level; focus shifts to Fed

Gold holds a pullback from six-day highs of $4,369 as buyers take a breather early Tuesday. The US Dollar looks to fill Monday’s bearish opening gap as markets temper Iran deal optimism. Technically, Gold remains exposed to downside risks whilst below the 21-day SMA near $4,400.

Indonesia may have stabilised the Rupiah, but the bigger fight is not over

Bank Indonesia’s emergency rate hike has bought the Rupiah some time, but the currency’s hesitant response suggests it has not yet restored confidence. Can higher interest rates solve the Rupiah’s problem, or do the country’s challenges run deeper?

RBA set for first interest-rate pause of 2026 as bets of further hikes weaken

The Reserve Bank of Australia is widely expected to leave the Official Cash Rate unchanged at 4.35% when it announces its monetary policy decision on Tuesday, marking a pause after three consecutive rate hikes delivered earlier this year. The decision will be announced at 04:30 GMT, accompanied by the Monetary Policy Statement.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.