Today’s spotlight is on Germany’s preliminary CPI for the month
The dollar strengthened against its major counterparts on Tuesday, recovering early losses, as the benchmark rate of US Treasury bonds hit a four-week high after a number of weak auctions and Germany’s preliminary economic data.
The Ministry of Finance observed modest demand for sales of two- and five-year bonds in Germany’s preliminary report. They came after data showed US consumer confidence unexpectedly improved in May after three months of weakness.
The dollar index was last up 0.03% at 104.59, after earlier dropping to 104.33. The euro gained 0.01% to $1.0859. Sterling weakened 0.05% to $1.276.
Bullions continued to gain for a second consecutive day, prices sparking against as traders remain bullish on the outlook for the precious metal, with the weekly Commitments of Traders report showing increased long bets, while funds raise their holdings.
Crude oil prices gained nearly one and half percent, hovering near the highest levels in four weeks amid expectations that OPEC+ countries would extend voluntary output cuts of about 2.2 million barrels per day into the third quarter at a meeting this weekend.
Copper prices climbed on Tuesday as the prospect of interest rate cuts, a weaker dollar and some strong data from China encouraged buying, but elevated stocks and rising production of the metal in the top consumer signaled ample supplies.
MCX gold futures settled +0.24 to 72180.Silver settled +0.89% to 95448.Copper settled +0.87% to 907.45. Crude oil +1.37% at 6637. Natural gas 1.80% to 214.50.
Economic data and events scheduled today
Japan
At 10.30am – Consumer Confidence. Data is foreseen at 39.1 from previous 38.3.
Above data could have a positive impact on the Yen.
Eurozone
At 11.30am – German GfK Consumer Climate. Data is foreseen at -22.5 from previous -24.2.
All day – German Prelim CPI m/m. Data is foreseen at 0.2% from previous 0.5%.
At 1.30pm-
M3 Money Supply y/y. Data is foreseen at 1.3% from previous 0.9%.
Private Loans y/y. Data is foreseen at 0.4% from previous 0.2%
Above data could have a positive impact on the Euro.
US
At 7.30pm- Richmond Manufacturing Index. Data is foreseen at -6 from previous -7
At 11.15pm- FOMC Member Williams Speaks.
At 11.30pm- Beige Book
Above data could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
Also Read: Will Natural Gas Find Support on Forecasts of Warmer US Term?, Nifty Dips: Bullish Repositioning or Short-Term Weakness?
Recommended Read: RBI MPC Meeting 2024: What’s On the RBI’s Radar?
Want Help On Your Trade?
Chat With our Analyst