 Cluster of U.S. economic data stands for today, which may bring clutter for the entire market. The dollar strengthened more than 0.76% yesterday. Currency found strong support in the wake of stubbornly high U.S. inflation data and retail sales data. And jitters of interest rates from Federal Reserve officials also weighed sentiment.
U.S. retail sales released yesterday also stood stronger than expected. Data was up 3% in January to log the largest increase in almost two years, much higher than expectation 1.9%.
The U.S. dollar index, which gauges the currency against its peers, was up 0.52% to 103.81.
An abrupt strength in the dollar resulted in a new crunch in Bullions and Base metal prices. Both metals tumbled significantly. Gold prices fell drastically, hit lowest level since 18 January 2023 while, Silver Future plunged more than 1.30%, and tested multi-week low.
MCX Gold Future plunged 1.13%, settled at 56111. Comex Gold future down 1.09%, and settled at $1835.60an once. MCX Silver down 65421, down 1.25%. Comex Silver down 1.08%, settled at $21.60.
Crude oil extended its fall for the second consecutive day. U.S. crude stockpiles rose for an eighth straight week last week and almost 10 times more than forecast, government data showed.
U.S. crude inventories rose by 16.283 million barrels during the week ended Feb. 10, the Energy Information Administration, or EIA, said in its Weekly Petroleum Status Report.
MCX Crude retreated from 6534 and settled at 6485, while Brent crude settled at $85.16, down 0.11% and WTI closed at $78.47, down 0.41%.
Base metal also witnessed significant fall. Copper was down 1.32%, Aluminum down 1.30%, ZINC down 2.17%.
Today Economic calendar
At 5.20am – Japan Trade balance due to release. Forecast is at -2.35T vs previous -1.72T (It would have negative impact on Yen)
At 6.00am – Australia Employment Change. Forecast 19.8k Vs previous -14.6k (may have a negative impact on Australian dollar).
At 2.30pm – Italian Trade Balance will be released. Forecast 1.40B Vs previous 1.45B (expect to have negative impact on Euro and bullions).
At 6:pm – German Buba President Nagel Speaks (expect to bring clutter for Pound)..
At 7:pm – U.S. Economic data
Core PPI m/m,forecast 0.3% Vs previous 0.1% (may have a positive impact on dollar).
PPI m/m, forecast 0.4% Vs previous -0.5% (may have a positive impact on dollar).
Unemployment Claims, forecast 200k Vs 196k (may have a neutral impact on dollar).
Building Permits, forecast 1.35M Vs previous 1.34M (may have a positive impact on dollar).
Housing Starts, forecast 1.35M Vs previous 1.38M (may have a positive impact on dollar).
At 9 :pm – Natural Gas Storage, forecast -97B Vs previous -217B (may have a negative impact on Natural gas).Â