US dollar
The dollar climbed above 153 against the yen for the first time in nearly three months on Wednesday on economic strength and an expected divergence among major global central banks’ pace of interest rate cuts.
The greenback is on track for its 16th gain in 18 sessions and fourth straight week of gains as a run of positive economic data has dampened expectations about the size and speed of rate cuts from the Federal Reserve, which has pushed U.S. Treasury yields higher..
Crude Oil:
Crude oil inventories rose sharply last week as imports ticked higher, while gasoline stocks rose unexpectedly as refineries ramped up output after seasonal maintenance, Energy Information Administration (EIA) data showed on Wednesday. Crude inventories rose by 5.5 million barrels to 426 million barrels in the week ending Oct. 18, the EIA said, compared with analysts’ expectations in a Reuters poll for a 270,000-barrel rise. The large crude oil inventory build this week is offsetting the drop last week. Net U.S. crude imports rose last week by 913,000 barrels per day to 2.3 million bpd, as exports fell 11,000 bpd to 4.11 million bpd..
Gold:
Gold prices retreated from the record high yesterday. Prices fell over 1% after hitting a record high, as a stronger dollar and a rise in U.S. Treasury yields countered support from safe-haven demand linked to the Nov. 5 U. S. election and Middle East war.
Copper:
Copper futures slipped over 1%, giving back gains from the previous session, weighed down by a rallying dollar as traders dialed back bets on aggressive rate cuts from the Federal Reserve. A stronger dollar makes commodities denominated in the currency more expensive for buyers holding other currencies, hurting demand. Still, copper prices continued to be supported by optimism about Chinese demand following a series of stimulus measures from Beijing.
Prices action (MCX)
Gold 77812 (-1.07%), Silver 96960 (-3.01%), Copper 806.50(-1.53%) Crude Oil 5976 (-1.06%) Natural gas 194.50 (-0.10%)
Major Economic Data Update
The Bank of Canada reduced its benchmark rate by 50 basis points to 3.75% from 4.25% as expected and hailed signs Canada has returned to a low-inflation era.
It was the first cut of that size in 15 years outside of the pandemic era and increased the amount of easing since June to 125 basis points.
Major Economic Data and Event scheduled today (Global PMI, US Jobless Claims)
Japan
At 6.00pm- Flash Manufacturing PMI. Data is foreseen at 49.9 from previous 49.70.
Above data could have a positive impact on the Yen.
Eurozone
At 12.45pm-
French Flash Manufacturing PMI. Data is foreseen at 44.9 from previous 44.6.
French Flash Services PMI. Data is foreseen at 49.8 from previous 49.60
At 1.00pm-
German Flash Manufacturing PMI. Data is foreseen at 40.70 from previous 40.60.
German Flash Services PMI. Data is foreseen at 50.60 from previous 50.60.
At 1.30pm-
Flash Manufacturing PMI. Data is foreseen at 45.10 from previous 45.00.
Flash Services PMI. Data is foreseen at 51.5 from previous 51.40.
3.30pm- German Buba Monthly Report.
Above data could have a neutral impact on the Euro.
UK
At 2.00pm
Flash Manufacturing PMI. Data is foreseen at 51.50 from previous 51.50.
Flash Services PMI. Data is foreseen at 52.30 from previous 52.40.
At 6.30pm- MPC Member Mann Speaks.
Tentative – Monetary Policy Report Hearings.
Above data could have a volatile impact on the Pound .
U. S
At 6.00pm- Unemployment Claims. Data is foreseen at 243k from previous 241k.
At 6.15pm- FOMC Member Hammack Speaks
At 7.15pm-
Flash Manufacturing PMI. Data is foreseen at 47.50 from previous 47.30.
Flash Services PMI. Data is foreseen at 55.00 from previous 55.2.
At 7.30pm- New Home Sales. Data is foreseen at 719k from previous 716k.
Above data could have a volatile impact on the dollar.
Day 4- IMF Meetings.
Day 3- BRICS Summit
Happy Trading!
Commodity Samachar Securities
We Decode the Language of the Markets
Also Read: Yuan Hits 2-Month Low on Tariffs: Is a Bigger Drop Coming? , Forex – The Rise of BRICS : A New Era in Global Diplomacy
Recommended Read: Trader’s Guide: Could You Profit from 2024’s Silver and Gold Price Fluctuations?
Want Help On Your Trades ?
Chat with RM