US Dollar index – The dollar was down in choppy trading on Thursday after a host of U.S. data indicated a relatively healthy economy, while the Swiss franc rose after the country’s central bank cut interest rates by 25 basis points (bps).
Oil prices fell more than 3% yesterday on a Financial Times report that Saudi Arabia, the world’s top crude exporter, will give up its $100 price target in preparation for raising output, along with OPEC members and allies in December. Brent LCOc1 crude futures were down $1.73, or 2.36%, to $71.73 a barrel, while U.S. West Texas Intermediate crude CLc1 fell $1.83, or 2.61%, to $67.86 per barrel as of 10:19 a.m. CDT1323.
Silver rose to its highest level in nearly 12 years on Thursday, riding the coattails of gold’s rally to record peaks as interest rate cuts by major central banks fuelled investment interest in precious metals. While Gold remained at record high, as the Greenback began to recover from earlier losses sustained in the. U.S. data portrays a ‘soft landing’ scenario, while China’s stimulus and rising tensions in the Middle East boosted Bullion prices.
Copper prices surged to their strongest in nearly 16 weeks high, propelled by hopes of firmer metals demand after China announced fiscal stimulus measures following an easing of monetary policy to boost its sluggish economy. Three-month copper on the London Metal Exchange (LME) CMCU3 broke through the psychological $10,000 per metric ton level, touching the highest since June 7 at $10,089.50. It was up 2.8% at $10,084
Monday’s Prices action (MCX)
Gold 75387 (+0.10%), Silver 92664 (+0.67%), Copper 862.30(+2.58%) Crude 5663(-3.05%) Natural gas 230(+6.09%)
Major Economic data and events Update –
- The greenback began paring losses after data showed U.S. weekly jobless claims fell by 4,000 to a four-month low of 218,000, below the 225,000 forecasts.
- Swiss National Bank reduced interest rates by 25 basis points, echoing the moves by the Fed and European Central Bank (ECB), and left the door open for more rate cuts as inflation cools sharply.
- The headline Tokyo Consumer Price Index (CPI) for September rose 2.2% YoY, compared to a 2.6% rise in the previous reading, the Statistics Bureau of Japan showed on Friday.
- The Tokyo CPI ex Fresh Food, Energy increased 1.6% YoY, compared to the previous reading of 1.6% rise.
- In August, U.S. Durable Goods Orders stagnated at 0.0% month-on-month, falling but still outperforming the projected contraction of 2.6%.
- the Initial Jobless Claims for the week ending September 20 showed a decrease to 218K, beating the anticipated 225K and signaling a decline from the revised figure of 222K in the preceding week.
Major Economic Data and Event scheduled today
Japan
At 10.00am- Tokyo Core CPI y/y. Data is foreseen at 2% from previous 2.4%.
Above data could have a positive impact on the Yen.
Eurozone
At 12.15pm—
French Consumer Spending m/m. Data is foreseen at -0.01% from previous 0.3%
French Prelim CPI m/m. Data is foreseen at -0.7% from previous 0.5%.
Spanish Flash CPI y/y. Data is foreseen at 1.9% from previous 2.3%
At 1.25pm- German Unemployment Change. Data is foreseen at 13k from previous 2k.
At 4.45pm- German Buba President Nagel Speaks.
Above data could have a negative impact on the Euro.
CANADA
At 6.00 pm – At 6.00pm- GDP m/m. Data is foreseen at 0.1% from 0.0%
Above data could have a mixed impact on the dollar.
U.S.
At 6.00pm
Core PCE Price Index m/m. Data is foreseen at 0.2% from previous 0.2%.
Goods Trade Balance. Data is foreseen at -110.6 from the previous -102.7B.
Personal Income m/m. Data is foreseen at 0.4% from previous 0.3%.
Personal Spending m/m. Data is foreseen at 0.3% from previous 0.5%.
At 7.30pm- Revised UoM Consumer Sentiment. Data is foreseen at 69.3 from previous 69.00
At 10.45pm- FOMC Member Bowman Speaks.
Above data could have a volatile impact on the dollar.
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