The dollar index rose to a fresh one-month high on Wednesday after US retail sales data showed the economy remains on solid footing, undermining the market’s outlook for potential Federal Reserve rate hikes.
Retail sales rose 0.6% last month after an unadjusted 0.3% gain in November, the Commerce Department and the Census Bureau said. Economists in a Reuters poll had forecast retail sales growth of 0.4 percent.
Crude fell about 1 percent on Wednesday as China’s economic growth fell short of expectations, concerns about energy demand and a stronger U.S. dollar increased. Renewed demand is a concern, although OPEC left its 2024 demand forecast unchanged in its influential monthly oil market report.
China reported a 5.2% rise in fourth-quarter gross domestic product, under a consensus estimate for a 5.3% rise according to a Reuters poll, while concerns over the health of the country and real-estate sector continue.
OPEC on Wednesday reiterated its 2024 demand forecast, seeing demand rising by 2.2 million barrels per day this year over 2023. with two-million barrels of new demand coming from less-developed economies. The cartel expects 2025 demand growth of 1.8 million bpd. The cartel forecast non-OPEC supply growth of 1.3-million bpd on higher production from the United States, Brazil, Canada, Norway, Kazakhstan and Guyana.
Gold fell to a second straight weekly low on Wednesday amid a stronger dollar and Treasury yields after more dovish comments from a Federal Reserve policymaker dampened expectations for a March US interest rate hike.
Copper declines from intraday levels amid renewed dollar strength and uncertain demand.
MCX gold futures down 0.82% to 61505. Silver settled down 0.88% at 71456. Copper down 0.31% to 713.30. Crude oil down 0.53% at 6005. Natural gas down 2.95% to 236.50.
Look Ahead: US Housing and Crude Oil Inventory to be the only important data?
Japan
At 10.00am- Revised Industrial Production m/m. Data is foreseen at -0.9% from previous -0.9%.
Above data could have a neutral impact on the Japanese Yen.
UK
At 3.00pm- BOE Credit Conditions Survey
Above data could have a volatile impact on the pound.
Eurozone
At 6.00pm- ECB Monetary Policy Meeting Accounts.
At 8.45pm- ECB President Lagarde Speaks
All above data could have a neutral impact on the Euro.
US
At 7.00pm-
Unemployment Claims. Data is foreseen at 206k from previous 202k.
Building Permits. Data is foreseen at -6.6 from previous -10.5.
Housing Starts. Data is foreseen at 1.43M from previous 1.56M.
At 9.00pm-Natural Gas Storage. Previous was at -140B.
At 9.30pm- Crude Oil Inventories. Previous was at 1.3M.
At 10.00pm- FOMC Member Bostic Speaks.
Above data could have a volatile impact on the dollar
Commodity Samachar
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Also Read : Gold slips as Dollar rises: Can It Weather the Storm? , Crude Oil: What’s Ahead for Its Sentiment in the Short Run?
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