European Central Bank (ECB) officials are worried that the euro's rapid rise could derail the regulator's efforts to keep inflation at 2%. The currency has already gained 14% against the dollar this year, according to Bloomberg.
Reuters reports that the S&P 500 and the Nasdaq closed lower on Tuesday, while the Dow Jones ended the trading session higher. The S&P 500 fell 6.94 points, or 0.11%, to 6,198.01.
Analysts at the World Bank project gold prices to pick up over the next 18 months, while silver is also expected to rise further in 2025 and 2026.
An increase of the indicator value may contribute to the rise in quotes of USD.
In today's interview with Bloomberg, European Central Bank (ECB) Vice President Luis de Guindos raised the issue of the euro's appreciation. He said that the EU currency's growth above the level of $1.2 is undesirable and could trigger further rate cuts.
Despite inflation risks, US President Donald Trump is urging the Federal Reserve to ease monetary policy by cutting the interest rate to 1%, down from the current range of 4.25%–4.50%. This comes as consumer prices are rising due to new import tariffs enacted on key trading partners.
Silver struggles to hold critical support at $36 an ounce as gold consolidates near $3,300 per ounce. However, Bernard Dahdah, analyst at Natixis, notes that silver may continue rising as it breaks away to forge its own path.
According to yesterday's Reuters report, analysts have slightly raised their oil price forecasts following the escalation of geopolitical tensions in the Middle East. However, growing energy supply from OPEC+ and moderate resource demand continue to put pressure on barrel prices.
In April, analysts were slashing S&P 500 earnings-per-share forecasts at a record pace, with earnings revision breadth hitting -25%. But the figure is now at just -5%. According to Morgan Stanley experts, further improvement in this metric will lead to the index closing the year at 6,500.
According to Reuters, higher demand for liquefied natural gas (LNG) in Europe has contributed to a shift in global cargo flows away from Asia. Overall LNG supplies increased in the first half of this year.
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