China CPI, German Retail sales data in Focus today

China CPI, German Retail sales data in Focus today

FX Update

The U.S. dollar rose for a second straight session on Wednesday as U.S. bond yields continued their recent advance, following a report that President-elect Donald Trump was contemplating the use of emergency measures to allow for a new tariff program.

Crude Oil:

Oil prices dropped over 1% on Wednesday as a stronger dollar and rising U.S. fuel inventories outweighed supply cuts by Russia and OPEC. U.S. gasoline stocks surged by 6.3 million barrels, far exceeding expectations, while crude inventories dipped by 959,000 barrels, according to the EIA.

Gold:

Gold prices inched up slightly  but faced pressure from a rebounding dollar amid concerns over slower monetary easing in 2025. U.S. jobless claims fell unexpectedly to their lowest since February, signaling labor market strength. .

Copper                                                                                                                                 

Copper prices edged higher as markets awaited China’s December inflation data for economic cues. LME copper rose 0.4% to $9,017.50/ton, and March futures gained 0.8% to $4.2302/pound. China is expected to boost fiscal spending to counter growth challenges and trade headwinds. .

MCX Closing Update

Gold 77,747 (0.28%), Silver 90,938 (0.07%), Crude oil 6,307 (-1.22%), Copper 822.50 (0.73%), Natural Gas 314(4.49%).

Economic Data and Event Releases yesterday  

US Data Releases:

Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 201,000 for the week ended Jan. 4, the lowest level since February 2024, the Labor Department said on Wednesday. Economists polled by Reuters had forecast 218,000 claims for the latest week.

US Private payrolls rose by 122,000 jobs last month after increasing by an unrevised 146,000 in November. Economists polled by Reuters had forecast private employment rising by 140,000.

 Federal Reserve minutes from the Dec. 17-18 meeting reveal policymakers favored slowing rate cuts due to concerns over stalling disinflation. Progress on reducing inflation toward the 2% target was slower, prompting a cautious approach to future policy adjustments.

Eurozone Releases :

German retail sales fell by 0.6% in real terms in November. This decline contradicts analyst predictions of a 0.5% rise.

German Industrial orders declined 5.4% from the previous month on a seasonally from -0.3% forecast.

Asia Releases :

Australia Retail sales grew 0.8% month-on-month in November, data from the Australian Bureau of Statistics showed on Thursday. The reading was slightly below expectations of 1% but picked up from the 0.5% growth seen in the prior quarter.

Economic Data and Event scheduled today

Australia

At 6.00am-

Retail Sales m/m. Data is foreseen at 1.00% from previous 0.6%.

Goods Trade Balance. Data is foreseen at -2.4% from previous -2.5%.

Above data could have a mixed impact on the dollar.

China

At 7.00am-

CPI y/y. Data is foreseen at 0.1%% from previous 0.2%.

PPI y/y. Data is foreseen at -2.4% from previous -2.5%.

Above data could have a positive impact on the Yuan.

Japan

At 5.00am – Average Cash Earnings y/y. Data is foreseen at 2.7% from previous  2.2%.

Above data could have a positive impact on the Yen.

UK

At 5.31am- BRC Shop Price Index y/y. Data is foreseen at -0.4% from previous -0.6%.

At 9.30pm- MPC Member Breeden Speaks

Above data and speech could have a volatile impact on the pound.

Eurozone

At 12.30pm –

German Industrial Production m/m. Data is foreseen at 0.5% from previous -1%.

German Trade Balance. Data is foreseen at 14.7B from previous 13.4B

At 2.30pm – ECB Economic Bulletin.

At 3.30pm- Retail Sales m/m. Data is foreseen at 0.3% from previous -0.5%

Above data could have a mixed impact on the Euro.

US

At 6.00pm- Challenger Job Cuts y/y.

At 7.30pm- FOMC Member Harker Speaks.

At 11.15pm- FOMC Member Barkin Speaks.

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 Rises as Dollar Dips: What Will Fed Minutes Reveal? , US Weekly Jobless Claim, FOMC Meeting Minutes in Focus today

Recommended Read: 2024 G20 Summit: Did It Deliver on Market Expectations?

Want Help On Your Trades ?

Chat with RM