The dollar dropped over one percent against major currencies on Tuesday after U.S. consumer price data showed the pace of inflation moderating in October, increasing the odds that the Federal Reserve is done hiking interest rates.
U.S. consumer prices were unchanged last month amid lower gasoline prices, the Labor Department’s Bureau of Labor Statistics (BLS) said, following a 0.4% rise in September.
In the 12 months through October, the consumer price index (CPI) climbed 3.2% after rising 3.7% in September, BLS said.
Crude oil prices rebounded from the day’s lows after the International Energy Agency (IEA) boosted its demand growth forecasts and the U.S. dollar fell on data showing inflation was slowing in the world’s biggest economy.
The IEA raised its oil demand growth forecasts for this year and next despite an expected slowdown in economic growth in nearly all major economies.
The agency lifted its 2023 growth forecast to 2.4 million barrels per day (bpd) from 2.3 million bpd. For 2024, it raised the forecast to 930,000 bpd from 880,000 bpd.
The American Petroleum Institute (API) trade group will release its oil storage report on Tuesday. The U.S. Energy Information Administration (EIA) reports official data later today.
The dollar index, which measures the currency against six major counterparts, fell 1.35% at 104.240. MCX Gold future settled at 60066 up 0.37%. Silver at 71590 up 2.48%. Copper prices settled at 708.40 up 0.31%. Crude oil settled at 6518 down 0.08%. Natural gas settled 260.0 down 0.76%
Economic data and events scheduled today
China
At 7.30pm –
Industrial Production y/y. Data is foreseen at 4.5% from the previous 4.5%.
Retail Sales y/y. Data is foreseen at 7.1% from previous 5.5%.
Fixed Asset Investment ytd/y. Data is foreseen at 3.1% from previous 3.1%.
Unemployment Rate. Data is foreseen at 5.0% from previous 5.0%.
Above data could have a positive impact on the Yuan.
Japan
At 10.00am – Revised Industrial Production m/m. Data is foreseen at 0.2% unchanged from previous0.2%.
Above data could have a neutral impact on the Yen.
Eurozone
At 12.30pm – German WPI m/m. Data is foreseen at 0.2% from previous 0.2%
At 1.15pm – French Final CPI m/m. Data is foreseen at 0.1% from previous 0.1%.
At 3.30pm – Industrial Production m/m. Data is foreseen at -0.9% from previous 0.6%.
At 3.30pm – Trade Balance. Data is foreseen at 6.6B from previous 11.9B
Above data could have a volatile impact on the Eur.
UK
At 12.30pm-
CPI y/y. Data is foreseen at 4.7% from 6.7%.
Core CPI y/y. Data is foreseen at 5.7% from 6.1%.
PPI Input m/m. Data is foreseen at 0.1% from 0.4%.
PPI Output m/m. Data is foreseen at 0.1% from 0.4%.
RPI y/y. Data is foreseen at 6.6% from 8.9%.
All above data could have a positive impact on the Pound.
Canada
At 7.00pm-
Manufacturing Sales m/m. Data is foreseen at 0.0% from 0.7%.
Wholesale Sales m/m. Data is foreseen at 0.1% from 2.3%.
Above data could have a negative impact on the Canadian dollar.
U.S.
At 7.00pm-
Core PPI m/m. Data is foreseen at 4.7% from 6.7%.
Core Retail Sales m/m. Data is foreseen at 5.7% from 6.1%.
Empire State Manufacturing Index. Data is foreseen at 0.1% from 0.4%.
PPI m/m. Data is foreseen at 0.1% from 0.4%.
Retail Sales m/m. Data is foreseen at 6.6% from 8.9%.
At 8.00pm- FOMC Member Barr Speaks
At 8.30pm – Business Inventories m/m.
At 9.00pm – Crude Oil Inventories.
At 9.00pm (Nov 3rd) – Crude Oil Inventories
Above data could have a volatile impact on the dollar.