Today’s economic news offers some compelling insights.
The U.S. dollar was mixed overall on Wednesday in choppy trading after data showed that underlying inflation in the world’s largest economy rose in August, reinforcing expectations that the Federal Reserve is likely to implement a smaller 25-basis-point interest rate hike next week.
Earlier in the session, the dollar came under pressure as investors increased the odds of Vice President Kamala Harris defeating Republican rival Donald Trump in the November 5 U.S. presidential election, following a televised debate between the two candidates on Tuesday.
Economic Data and Events Released Yesterday
- Data showed that the U.S. consumer price index (CPI) gained 0.2% last month, matching the advance in July. In the 12 months through August, the CPI advanced 2.5%, the smallest year-on-year rise since February 2021 and down from a 2.9% increase in July.
- The month-on-month headline US consumer price index met economists’ expectations, along with the annual figure, which slowed to 2.5% from 2.9% in July.
- GBP was the report of soft Gross Domestic Product (GDP) releases during the European sessions, UK’s July GDP missed expectations at 0.0% versus the forecasted 0.2%. Despite this, leading indicators point to a potential rebound in UK economic activity, suggesting that the Bank of England is unlikely to cut rates by more than the currently anticipated 50 basis points by year-end.
Commodity Update
Gold: Gold prices rose slighly as a fiery debate between presidential candidates Kamala Harris and Donald Trump raised uncertainty over the 2024 elections. While, prices react neutral after U.S. inflation reading.
Crude Oil: Oil prices climbed more than 2% on Wednesday, driven by fears of lengthy production shutdowns in the U.S. offshore oil patch, which Hurricane Francine was barreling through on the way to landfall in Louisiana. Brent crude futures settled at $70.61 a barrel, up 2.05%. U.S. crude futures finished up 2.37%, at $67.31.
Copper: Copper prices advanced as they recovered some measure of recent losses. But concerns over China- particularly slowing copper demand in the country, as well as potential trade war with the west- kept sentiment towards copper skittish.
Yesterday’s price action
MCX gold futures settled +0.02% to 71927.Silver settled 0.92% to 84450. Copper settled +0.92% to 792.20. Crude oil +2.84% at 5690. Natural gas +1.64% to 191.80.
Major Economic News, Data and Event scheduled today
Japan
At 5.20 –
BSI Manufacturing Index. Data is foreseen at 1.5% from previous 1.4%.
PPI y/y. Data is foreseen at 2.8% from previous 3%.
Above data could have a positive impact on the Yen.
Eurozone
At 11.30am—
German WPI m/m. Data is foreseen at -0.1% from previous -0.1%.
Italian Quarterly Unemployment Rate. Data is foreseen at 7.1% from previous 0.5%.
At 5.45pm
Main Refinancing Rate. Data is foreseen at 3.65% from previous 4.25%.
Monetary Policy Statement.
At 6.15pm- ECB Press Conference
Above data could have a volatile impact on the Euro.
CANADA
At 6.00 pm- Building Permits m/m. Data is foreseen at 6.5% from previous -13.5%.
Above mentioned economic news and data could have a mixed impact on the dollar.
US
At 6.00pm
Core PPI m/m. Data is foreseen at 0.2% from previous 0.0%.
PPI m/m. Data is foreseen at 0.1% from the previous 0.1%.
Unemployment Claims. Data is foreseen at 227K from previous 227K.
At 8.30PM- Natural Gas Storage.
At 11.30PM- Federal Budget Balance. Data is foreseen at -285.7B from previous -243.7B.
Above mentioned economic news and data could have a volatile impact on the dollar.
Happy Trading!
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