Euro falls as hawkish Fed expectations boost the US Dollar, Treasury yields

The post Markets raise odds for Federal Reserve rate hike after inflation report appeared on BitcoinEthereumNews.com. The rate cut party that markets spent all of 2024 anticipating has officially been uninvited. Fresh inflation data has pushed traders to price in something that seemed unthinkable just months ago: the Federal Reserve might actually raise interest rates. US headline CPI climbed to 3.8% year-over-year in April, hitting a nearly three-year high. Paired with March’s PCE reading, the Fed’s preferred inflation gauge, showing headline inflation at 3.5% and core PCE at 3.2%, the picture becomes harder to ignore. The pivot from pivot Market predictions currently indicate a 44% chance of a Fed rate hike before July 2027. Perhaps more telling, traders see no cuts happening before that date either. Chicago Fed President Austan Goolsbee has acknowledged that rate hikes are now on the table as a policy option. That’s notable because Goolsbee has generally been considered one of the m

The post Fed Expected To Hold Rates Steady Through 2026, TD Securities Says appeared on BitcoinEthereumNews.com. Fed Expected To Hold Rates Steady Through 2026, TD Securities Says Skip to content Home Forex News Fed Expected to Hold Rates Steady Through 2026, TD Securities Says Source: https://bitcoinworld.co.in/fed-expected-hold-rates-2026-td-securities/

The post US Dollar: Hawkish Fed repricing drives breakout – ING appeared on BitcoinEthereumNews.com. ING’s Francesco Pesole notes the US Dollar (USD) is gaining strong short-term momentum as hotter US data reinforce expectations for a Federal Reserve (Fed) hike. With US Dollar Index (DXY) breaking above late April highs and no progress on Gulf tensions, they see risks of further Dollar strength, contingent on incoming headlines from Beijing and developments in Oil and equities. DXY breaks higher on Fed repricing “The dollar seems to be gaining some serious short-term momentum. We had speculated yesterday that the Trump-Xi meeting could have yielded some positive headlines (perhaps also on Iran) that would have capped USD and lifted sentiment. It’s been too little so far, and a turn lower in equity futures today alongside another leg higher in oil prices is allowing the dollar to benefit from the latest hawkish data and the resulting repricing higher in Fed hike bets.” “Overall, there i

The post US Dollar Holds Firm On Higher Yields And Resilient Data: Deutsche Bank appeared on BitcoinEthereumNews.com. US Dollar Holds Firm On Higher Yields And Resilient Data: Deutsche Bank Skip to content Home Forex News US Dollar Holds Firm on Higher Yields and Resilient Data: Deutsche Bank Source: https://bitcoinworld.co.in/us-dollar-supported-higher-yields-data-deutsche-bank/

The post Why Bitcoin Price Could Reach $88,000 Despite Rising Odds Of Fed Rate Hikes appeared on BitcoinEthereumNews.com. Bitcoin (BTC) price might reach $88,000 because it is currently 11.2% lower than the ETF Flow Impact Score (EFIS). But the move here is facing an obstacle of a potential increase in interest rates by the Federal Reserve. The odds of this happening are now at 49% despite Kevin Warsh taking over the helm of the Fed after Jerome Powell’s term ends today, May 15. Bitcoin traded at $80,069 at the time of writing with a 0.35% gain. Odds of Fed Rate Hikes Soar as Jerome Powell’s Tenure Ends Data from the CME FedWatch Tool shows that there is a 49% chance that the Fed will increase interest rates between October and December 2026. 26.7% expect the Fed to increase rates by 25 basis points in October, while 2.8% expect a 50% hike. As for December, 38% expect a 25% basis point hike while 9% expect a 50 basis point increase. These increasing odds come even as Powell, who has be

The post US stock market reels lower as Treasury yields soar appeared on BitcoinEthereumNews.com. The US Treasury market is rearing its head once again on Friday, this time causing a broad sell-off in US market indices. The NASDAQ Composite opened up close to 1.4% lower, while the S&P 500 and Dow Jones Industrial Average (DJIA) are both off between 0.5% and 1.0%. All three indices sold off much worse in the futures market, so there is reason to believe the indices will fall further as the regular session gets underway. The culprit? Treasury yields. The US 10-year has risen nearly 8 basis points to 4.57%, while the US 30-year yield is up about 1.6% to 5.11%. Many observers are pointing to political instability in the leadership of Prime Minister Kier Starmer in the United Kingdom (UK). Upheaval in his own Labour Party has led to further calls for Starmer to resign, pushing up Gilt yields. On the US side of the ledger, the NY Empire State Manufacturing Index for May came in Friday mornin

Analysts point to profit-taking, not panic, with ETF outflows at their worst pace since February as 10-year Treasury yield soars.

The post US Dollar: Supported by higher yields and data – Deutsche Bank appeared on BitcoinEthereumNews.com. Deutsche Bank analysts highlight that the Dollar Index (DXY) strengthened as United States (US) yields moved higher and data remained resilient. Retail sales matched expectations, and the Atlanta Fed’s GDPNow estimate for Q2 was revised up, underscoring solid economic momentum. Short-end Treasury yields broke above 4%, while the 10-year yield reached a 10‑month high, underpinning the Dollar’s performance. Firm US data and yields back Dollar “And in turn, 2yr Treasury yields (+3.9bps) rose above 4% for the first time since June 2025.” “The moves were more muted further out the curve however, with the 10yr Treasury yield (+1.3bps) inching up to a 10-month high of 4.48%.” “Elsewhere, markets got further support from a robust batch of US data. In particular, retail sales showed signs of resilience, with the headline measure up +0.5% in April as expected.” “And in turn, the Atlanta F