Today’s economic news offers some compelling insights.
Dollar Index:
The U.S. dollar rose broadly on Thursday, recovering from an earlier drop following the Federal Reserve’s outsized interest rate cut, which had been largely priced in by markets. On Wednesday, the Fed kicked off its monetary easing cycle with a larger-than-expected half-percentage-point reduction, signaling policymakers’ commitment to maintaining low unemployment now that inflation has eased.
Crude Oil:
Oil prices fell in Asian trading on Thursday after the Fed’s larger-than-expected rate cut sparked concerns about the U.S. economy. Brent crude futures for November dropped 34 cents, or 0.46%, to $73.31 per barrel by 0015 GMT, while WTI crude futures for October declined 42 cents, or 0.59%, to $70.49 per barrel. The Fed’s rate cut, while typically supportive of economic activity, suggested concerns about a slowing U.S. job market.
Gold:
Gold prices retreated from all-time highs as the dollar and Treasury yields rose, following comments from Fed Chair Jerome Powell after the central bank’s 50-basis-point rate cut.
Copper:
Copper prices ticked higher on Wednesday, ahead of the widely anticipated Fed rate cut, which investors expect will support demand for metals.
Monday’s Prices action (MCX)
Gold 73055 (-0.05%), Silver 88299 (-0.94%), Copper 808.90(+0.12%) Crude 5913 (-1.27%) Natural gas 193.30(-1.63%)
Yesterday Data and Event Update –
Federal Reserve voted to cut interest rates by 0.5 percentage point, opting for a more aggressive reduction than investors had been expecting just a week ago.
The Fed’s dot plot of the Federal Open Market Committee’s (FOMC) Summary of Economic Projections was also revised downward from the central bank’s previous rate outlook. The median policy expectations from the Fed now see the Fed Funds rate at 4.4% by year-end 2024 and 3.4% by year-end 2025, down from 5.1% and 4.1%, respectively.
Major Economic News, Data and Event scheduled today
Australia
At 7.00am-
Employment Change. Data is foreseen at 26.4k from previous 58.2K
Unemployment Rate. Data is foreseen at 4.2% from previous 4.2%.
Above data could have a neutral impact on the Dollar.
Eurozone
At 1.30pm—
Current Account. Data is foreseen at 40.3B from previous 50.5B.
At 3.30pm – German Buba Monthly Report.
At 5.00PM – German Buba Monthly Report.
Above data could have a neutral impact on the Euro.
UK
At 4.30pm-
Monetary Policy Summary.
MPC Official Bank Rate Votes. Forecast 0-2-7, previous 0-5-4.
Official Bank Rate. Data is foreseen at 5.00% from previous 5.00%.
Above mentioned economic news and data could have a positive impact on the Pound.
US
At 6.00pm
Unemployment Claims. Data is foreseen at 230k from previous 230k.
Philly Fed Manufacturing Index. Data is foreseen at -0.8 from the previous-7.0.
Current Account. Data is foreseen at -259B from previous -238B.
At 7.30pm-
Existing Home Sales. Data is foreseen at 3.90M from previous 3.95M.
CB Leading Index m/m. Data is foreseen at -0.3% from previous -0.6%.
At 8.00pm- Natural Gas Storage.
Above mentioned economic news and data could have a volatile impact on the dollar.
Happy Trading!
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