Today’s economic news looks quite interesting.
Dollar Index
The Dollar Index flexed its muscles on Monday, surging to a two-month high as haven currencies took a backseat, U.S. shares rallied, and traders braced for a packed week of data and corporate earnings. With the Federal Reserve signaling a dovish stance, Minneapolis Fed President Neel Kashkari hinted that more rate cuts could be on the horizon as inflation inches toward the Fed’s 2% target.
On the other hand, the Euro is feeling the heat, slipping ahead of Tuesday’s data dump and Thursday’s much-anticipated 25 basis point rate cut by the European Central Bank (ECB). All eyes are on the ECB to see how they’ll juggle a slowing economy and stubborn inflation. Expect fireworks in EUR/USD as traders gear up for a turbulent week!.
Crude Oil:
Crude Oil prices fell 2% on Monday as OPEC again lowered its outlook for 2024 and 2025 global oil demand growth while China’s oil imports fell for the fifth straight month. China’s stimulus plans failed to inspire investor confidence while markets kept watching for potential Israeli attacks on Iranian oil infrastructure…
Gold:
Gold is steady supported by geopolitical tensions in the region. China on Monday carried out a day of “around-the-clock” drills around Taiwan, sending a record number of military aircraft and saying for the first time that it had deployed its coast guard to encircle the island. Tensions between China and Taiwan is a major factor driving current demand for gold.
Copper:
Copper prices dropped due to a lack of detail on China’s stimulus plans, deflationary pressures in the top consumer and a firm dollar, but higher Chinese imports of the industrial metal provided some support.
Prices action (MCX)
Gold 76046 (-0.34%), Silver 90736 (-1.04%), Copper 825.40(-1.75%) Crude Oil 6245 (-1.8%) Natural gas 210.90 (-5.13%)
Yesterday Data and Event Update –
· India’s annual retail inflation accelerated to 5.49% in September from 3.65% a month ago, government data showed on Monday.
· India’s wholesale price index-based inflation rose to 1.84% in September on the back of higher food prices. The September print was lower than the 1.92% increase projected by economists in a Reuters poll and up from 1.31% in August, according to government data released on Monday.
· Consumer price index inflation grew 0.4% year-on-year in September, government data showed over the weekend. The reading was slower than expectations it would remain steady from the 0.6% seen in the prior month.
Major Economic News, Data and Event scheduled today
Japan
At 10.00am- Revised Industrial Production m/m. Data is foreseen at -3.3% from previous -3.3%.
Above data could have a neutral impact on the Yen.
Eurozone
At 11.30am— German WPI m/m. Data is foreseen at 0.2% vs -0.8%.
At 12.15pm- French Final CPI m/m. Data is foreseen at -1.2% from previous -1.2%.
At 2.30pm-
German ZEW Economic Sentiment. Data is foreseen at 10.2 from previous 2.6.
Industrial Production m/m. Data is foreseen at 1.8% from previous -0.3%.
ZEW Economic Sentiment. Data is foreseen at 16.9 from previous 9.3.
Above data could have a neutral impact on the Euro.
UK
At 11.30am—
Claimant Count Change. Data is foreseen at 20.2k from previous 23.7k.
Average Earnings Index 3m/y. Data is foreseen at 3.8% from previous 4%.
Unemployment Rate. Data is foreseen at 4.1% from previous 4.1%.
Above data could have a positive impact on the pound.
Canada
At 6.00pm—
CPI m/m. Data is foreseen at -0.2% from previous -0.2%.
Median CPI y/y. Data is foreseen at 2.3% from previous 2.3%
Trimmed CPI y/y. Data is foreseen at 2.4% from previous 2.4%.
Wholesale Sales m/m. Data is foreseen at -1.1% from previous 0.4%.
Above mentioned economic news and data could have a volatile impact on the dollar.
US
At 6.00pm- Empire State Manufacturing Index. Data is foreseen at 3.4 from previous 11.5.
At 9.00pm- FOMC Member Daly Speaks
At 10.30pm- FOMC Member Kugler Speaks
Above mentioned economic news and data could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar Securities
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Also Read: Swiss Forex: Producer & Import Prices See Slight Sept Drop
Recommended Read: Trader’s Guide: Could You Profit from 2024’s Silver and Gold Price Fluctuations?
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