With a whirlwind of data on the horizon today the spotlight seems to be shining on the US CPI data. Before discussing about today’s data lets take a recap into yesterday’s market movements.
The US dollar was steady in early European trade on Wednesday, hovering near three-week lows as Federal Reserve Chairman Jerome Powell resumed his two-day shift on Capitol Hill on the first day, while the euro held firm amid political uncertainty.
Powell said inflation remains above the US Federal Reserve’s 2 percent target but has improved in recent months and “getting good data would strengthen” the Fed’s interest rates.
Gold rose after comments by Federal Reserve Chairman Jerome Powell fueled expectations that the US central bank will cut interest rates soon, while investors awaited US inflation data for further clues.
Copper prices continued to face pressure and fell for a third straight session as economic data from top consumer China dampened market sentiment.
Data showed Chinese consumer prices rose less than expected in June, while producer deflation continued for the 21st straight month, pointing to weak demand.
Crude recovered from early losses and are moderately higher. Crude prices rebounded from a one week low and moved higher after weekly EIA crude inventories unexpectedly declined.
U.S. crude inventories fell by 3.4 million barrels to 445.1 million barrels in the week ended July 5 as refiners ramped up processing, the U.S. Energy Information Administration said, far exceeding analysts’ expectations in a Reuters poll for a 1.3-million-barrel draw.
MCX gold futures settled +0.37% to 72668.Silver settled -0.15% to 92832. Copper settled -0.02% to 868.50. Crude oil +0.41% at 6858. Natural gas -2.11% to 194.90.
US CPI in Focus – Economic data and events scheduled today
Japan
At 5.20am-
Core Machinery Orders m/m. Data is foreseen at 0.9%. Previous was at -2.9%.
Above data could have a positive impact on the Yen.
Eurozone
At 11.30am – German Final CPI m/m. Data is foreseen at 0.1% from previous 0.1%.
Above data could have a volatile impact on the Euro.
U.K.
At 11.30am-
GDP m/m. Data is foreseen at 0.2% from previous 0.0%.
Construction Output m/m. Data is foreseen at 0.5% from previous -1.4%.
Goods Trade Balance. Data is foreseen at -15.6B from previous -19.6B.
Index of Services 3m/3m. Data is foreseen at 1.0% from previous 0.9%.
Industrial Production m/m. Data is foreseen at 0.3% from previous -0.9%.
Manufacturing Production m/m. Data is foreseen at 0.4% from previous -1.4%.
At 2.00pm- BOE Credit Conditions Survey.
Above data could have a volatile impact on the Pound.
US
At 6.00pm-
Core CPI m/m. Data is foreseen at 0.2%. Previous was at 0.2%.
CPI m/m. Data is foreseen at 0.1% from previous 0.0%.
CPI y/y. Data is foreseen at 3.1% from previous 3.3%.
Unemployment Claims. Data is foreseen at 236k from previous 238k.
At 8.00pm- Natural Gas Storage. Forecast 56B. Previous 32B.
At 9.00pm- FOMC Member Bostic Speaks
At 10.30pm- FOMC Member Musalem Speaks.
At 11.30pm- Federal Budget Balance. Data is foreseen at -71.2B from previous -347.1B.
Above data could have a volatile on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
Also Read : Will Silver Price Surge Beyond Current Consolidation? Nifty Surrenders to Selling Pressure, Bears Mauling Markets
Recommended Read : GDP : Is it an important aspect that you should focus on?
Want help on your Trade?