Top Economic News You Can’t Afford to Miss Today
FX Update
The dollar rose on Tuesday ahead of U.S. inflation data that could offer clues about the Federal Reserve’s monetary-easing path, while analysts assess the likely impact of President-elect Donald Trump’s policies when he begins his second term.
The Australian dollar dropped sharply against the U.S. dollar as the Reserve Bank of Australia softened its tone on the inflation outlook. Its rally the day before sparked by China stimulus pledges also tapered off after weak Chinese trade data.
Elsewhere, the Bank of Canada and the Swiss National Bank decide policy on Wednesday and Thursday, respectively, with deep rate cuts expected from both.
Crude Oil:
Oil prices steady as concerns eased about the fallout from the overthrow of Syria’s president, despite support from China’s plan to ramp up policy stimulus- a potential boost to demand from the world’s biggest crude buyer.
The power transfer, which followed 13 years of civil war and brought an end to over 50 years of brutal rule by the Assad family, raised concerns of regional instability. Oil prices may get a boost if the Federal Reserve comes through with expected rate cuts of 25 basis points when it meets on Dec. 17-18. That could juice oil demand in the world’s biggest economy, though traders are waiting to see if this week’s inflation data derail the cut.
Gold:
Gold prices gained, helped by escalating geopolitical tensions in the Middle East and expectations of a U.S. rate cut this month, with key U.S. inflation data later this week grabbing investors’ attention. Friday’s jobs report has boosted bets around a December Fed rate, geopolitical tensions in the Middle East and reports of China’s central bank resuming gold purchases after a six-month break is supporting gold prices.
Copper:
London copper prices drifted lower as the U.S. dollar strengthened, and data from top consumer China showed exports grew at a slower pace in November as the threat of tariff increases by U.S. President-electDonald Trumploomed.
MCX Closing Update
Gold 78,338 (1.10%), Silver 95,525 (0.34%), Crude oil 5,845 (0.34%), Copper 830.65 (-0.05%), Natural Gas 267.70(-1.40%)
Major Economic Data and Event Update
· Japan’s wholesale prices rose 3.7% year-on-year in November, edging up from October’s 3.6% increase, as firms faced mounting raw material costs. The corporate goods price index (CGPI), which tracks prices businesses charge each other, exceeded market expectations of a 3.4% rise, signaling sustained inflationary pressures.
· German inflation remained flat at 2.4% in November, the federal statistics office said on Tuesday, confirming preliminary data.
· China’s exports slowed in November, rising 6.7% year-on-year—below October’s 12.7% surge and missing the 8.5% forecast. Imports unexpectedly dropped 3.9%, widening the trade surplus to $97.44 billion from $95.72 billion.
· The slowdown comes as U.S. President-elect Donald Trump pledges a 10% tariff on Chinese goods to curb fentanyl-related chemical trafficking, with past threats of tariffs exceeding 60%. Meanwhile, unresolved EU tariffs on China-made EVs, reaching up to 45.3%, risk escalating trade tensions further.
Major Economic News, Data and Event scheduled today
JAPAN
At 5.20am –
BSI Manufacturing Index. Data is foreseen at 1.8 from Previous 4.5.
PPI y/y. Data is foreseen at 3.4% from previous 3.4%.
Above mentioned economic news and data could have a mixed impact on the Yen.
Australia
At 12.30pm- RBA Deputy Gov Hauser Speaks.
Canada
At 8.15pm-
BOC Rate Statement. Overnight Rate (forecast 3.25% vs 3.75%)
At 9.00pm- BOC Press Conference.
Abovementioned economic news and data could have a volatile impact on the dollar.
US
At 7.00pm
Core CPI m/m. Data is foreseen at 0.3% from previous 0.3%.
CPI m/m. Data is foreseen at 0.3% from previous 0.2%.
CPI y/y. Data is foreseen at 2.7% from previous 2.6%.
At 9.00pm- Crude Oil Inventories
Above data could have a volatile impact on the dollar.
Until then, Happy Trading!
Commodity Samachar Securities
We Decode the Language of the Markets
Also Read: Copper Prices Drop After China Data – What’s the Outlook?
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