Current policy is well positioned to respond, based on incoming data

Current policy is well positioned to respond, based on incoming data

Federal Reserve (Fed) Vice Chair Philip Jefferson said that the current policy stance should support the job market and allow inflation to resume decline toward 2% as tariff effects and energy prices pass through, Reuters reported on Thursday. He added that in a scenario where inflation does not start cooling, it could be appropriate to reconsider […]

Thai Baht: Overvaluation points to weakness against US Dollar

Thai Baht: Overvaluation points to weakness against US Dollar

MUFG’s Lloyd Chan notes that softer US inflation data has weakened the Dollar and lowered Fed rate hike expectations, but USD/THB has still broken above 33.50. He highlights Thailand’s low carry, deteriorating terms of trade from higher Oil prices, increased growth risks from Middle East tensions, and valuation metrics indicating the Baht remains modestly overvalued, […]

Euro edges lower as Yen firms on risk aversion, ECB hike in view

Euro edges lower as Yen firms on risk aversion, ECB hike in view

EUR/JPY trades around 185.80 at the time of writing on Thursday, little changed on the day after reaching a one-month high earlier this week. The pair is edging slightly lower as the Japanese Yen (JPY) regains some footing, although expectations of further monetary tightening by the European Central Bank (ECB) continue to provide underlying support […]