Top Economic News You Can’t Afford to Miss Today
FX Update
The U.S. dollar strengthen against major currencies on Tuesday following better-than-expected retail sales data that showed underlying economic momentum while markets braced for interest rate moves from the Federal Reserve and other central banks.
Commerce Department data on Tuesday showed U.S. retail sales surpassed expectations by jumping 0.7% in November, backed by an uptick in motor vehicle and online purchases.
Crude Oil:
Crude Oil prices were down as China’s economic data renewed demand concerns, while investors remained cautious ahead of the U.S. Federal Reserve’s interest rate decision. On Monday, prices fell from multi-week highs on unexpected weakness in consumer spending data from China, despite strength in industrial output, and as investors moved into a holding pattern ahead of the Fed’s meeting.
Gold:
Gold prices edged lower, pressured by a stronger U.S. dollar ahead of the Federal Reserve’s upcoming decision on interest rates and cues on the future direction of monetary policy. The Fed is set to hold its final policy meeting of the year starting later in the day, with a widely anticipated quarter point interest rate cut expected on Wednesday. However, traders are increasingly convinced the central bank will lower borrowing rates only gradually next year.
Copper
Copper prices dropped to two-week lows as worries about demand in top consumer China, partly fuelled by uncertainty about U.S. tariffs on imports, and a stronger dollar weighed on sentiment.
MCX Closing Update
Gold 76,871 (-0.25%), Silver 90,875 (-0.34%), Crude oil 5,930 (-1.53%), Copper 807.15(-0.87%), Natural Gas 270.50 (-1.46%).
Major Economic Data and Event Update
· UK showed that the ILO Unemployment Rate held steady at 4.3% in the three months to October, while the annual wage inflation climbed to 5.2%, helping Pound Sterling hold its ground.
· German IFO Business Climate Index dropped to 84.7 in December from 85.7 in November. The data came in below the consensus 85.6 print.
· US industrial production dipped 0.1%, outperforming the expected 0.3% drop and signaling a continued manufacturing slowdown.
· U.S. retail sales surpassed expectations by jumping 0.7% in November, backed by an uptick in motor vehicle and online purchases.
Economic News, Data and Event scheduled today
Japan
At 5.20am- Trade Balance. Data is foreseen at -0.45T from previous -0.36T.
Above data could have an negative impact on the Yen.
Eurozone
At 3.00pm- German Buba President Nagel Speaks.
At 3.30pm –
Final Core CPI y/y. Data is foreseen at 2.7% from 2.7%.
Final CPI y/y. Data is foreseen at 2.3% from previous 2.3%
Above mentioned economic news and data could have a volatile impact on EURINR.
UK
At 12.30pm
CPI y/y. Data is foreseen at 2.6% from previous 2.3%.
Core CPI y/y. Data is foreseen at 3.6% from previous 4.3%.
PPI Input m/m. Data is foreseen at 0.2% from previous 0.1%.
PPI Output m/m. Data is foreseen at 0.2% from previous 0.0%.
RPI y/y. Data is foreseen at 3.7% from previous 3.4%.
Above mentioned economic news and data could have a volatile impact on the pound.
US
At 7.00pm-
Building Permits. Data is foreseen at 1.43M from previous 1.42M.
Current Account. Data is foreseen at -286B from previous -267B
Housing Starts. Data is foreseen at 1.35M from previous 1.31M
At 9.00pm-Crude Oil Inventories
At 12.30am-
Federal Funds Rate. Forecast to cut 4.50% from 4.75%.
FOMC Economic Projections. FOMC Statement.
At 1.00am- FOMC Press Conference.
Above mentioned news and data could have a neutral impact on the dollar.
Until then, Happy Trading!
Commodity Samachar Securities
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