Top Economic News You Can’t Afford to Miss Today
FX Update
The U.S. dollar sparked above 107 mark after a hotter than expected inflation readout while the euro traded a touch lower following the European Central Bank’s decision to cut interest rates for the fourth time this year.
The dollar index, which measures the currency against a basket of six others, was last up 0.375% at 106.95, a day after a separate U.S. inflation reading cemented bets for a rate cut from the Federal Reserve next week
The euro was last down 0.2% against the dollar at $1.0473.
The Swiss franc was up against the dollar after the Swiss National Bank opted for a 50 basis point interest rate cut. A majority of economists surveyed by Reuters had expected a smaller 25 basis point move.
Crude Oil:
Crude Oil prices settled with minor gains, pressured by a forecast for ample supply in the oil market but supported by rising expectations of a Federal Reserve interest rate cut. The International Energy Agency made a slight upward revision to its demand outlook for next year but still expected the oil market to be comfortably supplied. On Wednesday, OPEC cut its demand growth forecast for 2024 for the fifth straight month.
Gold:
Gold slipped over 1% as investors booked profits after it briefly reached a five-week high earlier in the session and squared positions ahead of a U.S. Federal Reserve meeting next week. Jobless claims also rose in the latest week pointing towards an easing labor market making it more likely that the Fed will cut interest rates next week for the third time, despite little progress in lowering inflation down to its 2% target in recent months.
Copper:
Copper prices retreated over half percent due to a stronger dollar, a lack of clarity on the size of the economic stimulus promised by China’s key policy meeting and expectations of oversupply in the global copper market next year.
MCX Closing Update
Gold 77,969 (-1.31%), Silver 92,633 (-3.31%), Crude oil 5,978 (0.74%), Copper 822.65(-0.83%), Natural Gas 299.60 (4.50%)
Major Economic Data and Event Update
· The Swiss National Bank cut its interest rate by 50 basis points to 0.50% VS 1%, its biggest reduction in almost 10 years as it sought to stay ahead of expected cuts by other central banks and cap the rise of the Swiss franc.
· Data Update –
· India’s annual retail inflation in November eased to 5.48% from 6.21% in the previous month, government data released on Thursday showed.
· India’s Index of Industrial Production (IIP) grew by 3.5% in October 2024, up from 3.1% in September 2024.
· The ECB on Thursday cut interest rates by 25 basis points to 3.15% from 3.40% and kept the door open to further easing ahead as inflation closes in on its goal and the economy remains weak.
· US producer prices rose 0.4% on a monthly basis in November from previous 0.20%
· The number of initial jobless claims in the United States has seen an unexpected increase to 242k from 225k previous.
Major Economic News, Data and Event scheduled today
Japan
At 5.20am-
Tankan Manufacturing Index. Data is foreseen at 13 from previous 13.
Tankan Non-Manufacturing Index. Data is foreseen at 33 from previous 34.
At 10.00am- Revised Industrial Production m/m. Data is foreseen at 3% from previous 3%.
Above data could have a negative impact on the Yen.
Australia
At 7.00am- RBA Assist Gov Hunter Speaks
Eurozone
At 12.30pm-
German Trade Balance. Data is foreseen at 15.7B from previous 17.0B
German WPI m/m. Data is foreseen at 0.2% from previous 0.4%.
At 1.15pm –
French Final CPI m/m. Expect -0.1% from -0.1%.
At 3.30pm- Industrial Production m/m. Data is foreseen at 0.0% from previous -2.0%.
Above data could have a volatile impact on EURINR.
UK
At 12.30pm
GDP m/m. Data is foreseen at 0.1% from previous -0.1%.
Construction Output m/m. Data is foreseen at 0.2% from previous 0.1%.
Goods Trade Balance. Data is foreseen at -16.1B from previous -16.3B.
Index of Services 3m/3m. Data is foreseen at 0.2% from previous 0.1%.
Industrial Production m/m. Data is foreseen at 0.3% from previous -0.5%.
Manufacturing Production m/m. Data is foreseen at 0.2% from previous -0.1%.
Above mentioned economic news and data could have a volatile impact on the pound.
Canada
At 7.00pm-
Capacity Utilization Rate. Data is foreseen at 78.9% from previous 79.1%.
Manufacturing Sales m/m. Data is foreseen at 1.2% from previous -0.5%.
Wholesale Sales m/m. Data is foreseen at 0.6% from previous 0.8%.
Above mentioned economic news and data could have a volatile impact on the dollar.
US
At 7.00pm- Import Prices m/m. Data is foreseen at -0.2% from previous 0.3%
Above mentioned economic news and data could have a neutral impact on the dollar.
Until then, Happy Trading!
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