Today’s economic news offers some compelling insights.
Dollar index – The U.S. dollar traded near its lowest levels of the year on Monday. It touched a low 100.58 and down nearly 0.40% ahead of the expected start of a U.S. easing cycle, with markets betting on an outsized rate cut.
Further, the currency fell to a more than one-year low against the yen, as expectations grew for the Federal Reserve to deliver a larger-than-anticipated rate cut later this week. The Fed is widely expected to announce at least a 25-basis-point cut at the conclusion of its September policy meeting on Wednesday.
Crude oil – Oil prices extended gains on Tuesday as the market eyed U.S. output concerns in the aftermath of Hurricane Francine and expectations of lower U.S. crude stockpiles. Brent crude futures LCOc1 for November rose 16 cents, or 0.2% at $72.91 a barrel. U.S. crude futures CLc1 for October climbed 34 cents, or 0.5%, at $70.43 a barrel.
Gold – Gold prices held steady to hover near record highs scaled in the previous session, as markets anticipate the beginning of a U.S. easing cycle, with expectations that it might start with an outsized rate cut.
Aluminum – Aluminum prices raised through key resistance levels, supported by lower inventory, a weaker dollar and expectations the U.S. Federal Reserve will this week announce a bigger interest rate cut.
Monday’s Prices action (MCX)
Gold 73496 (-0.03%), Silver 89609 (+0.48%), Copper 809.30(+0.89%) Crude 5887 (+2.03%) Natural gas 199.4(+2.84%)
Major Economic News, Data and Event scheduled today
Japan
At 10.00am-Tertiary Industry Activity m/m. Data is foreseen at 0.8% from previous -1.3%.
Above data could have a positive impact on the Yen.
Eurozone
At 2.30pm—
German ZEW Economic Sentiment. Data is foreseen at 17.1 from previous 19.2.
ZEW Economic Sentiment. Data is foreseen at 16.3 from previous 17.9.
Above data could have a negative impact on the Euro.
CANADA
At 6.00 pm
CPI m/m. Data is foreseen at 0.0% from previous 0.4%.
Median CPI y/y. Data is foreseen at 2.2% from previous 2.4%.
Trimmed CPI y/y. Data is foreseen at 2.5% from previous 2.7%.
Core CPI m/m. Previous was at 0.3%.
Above mentioned economic news and data could have a mixed impact on the dolla.
US
At 6.00pm
Core Retail Sales m/m. Data is foreseen at 0.2% from previous 0.4%.
Retail Sales m/m. Data is foreseen at -0.2% from the previous 1%.
At 6.45pm-
Capacity Utilization Rate. Data is foreseen at 77.9% from previous 77.8%.
Industrial Production m/m. Data is foreseen at 0.2% from previous -0.6%.
At 7.30pm- FOMC Member Logan Speaks.
Above mentioned economic news and data could have a volatile impact on the dollar.
Happy Trading!
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Also Read: Yen Hits Year-High Amid Forex Focus on Aggressive Fed Rate Cut
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