The dollar sparked more than 1% against a basket of currencies on Tuesday. It jumped above 105 after Federal Reserve Chair Jerome Powell said that the U.S. central bank will stay the course until the job is done, adding that the ultimate level of interest rates is likely to be higher than previously anticipated.
Powell also said that the Fed is prepared to increase the pace of rate hikes if data indicates it is warranted. That comes after the bank slowed the pace of its tightening to 25 basis points at its last two meetings, following larger hikes last year.
From the Commodity front, Gold plunged more than 1.20% following the above statement. Silver plunged more than 3.50%. Crude oil dipped below 2.50% while Natural gas rose 2.80%. Base metals also came in pressure, Copper down 2.03%, Aluminum down 1.05%, Zinc down 2.15%.
Today Economic data and events
Japan Data
At 5.20am- Bank Lending y/y, previous was at 3.1%, forecast is at 3.2%.
At 5.20am- Current Account, previous was at 1.18T, forecasts is lower at 0.80T.
At 10.30am Economy Watchers Sentiment, previous was at 48.5, forecast is slightly higher at 49.1.
At 10.30am – Leading Indicators, previous was at 97.2%, forecast is slightly lower at 96.9%
All the above data appears to bring negative momentum for Yen.
Eurozone data
At 12.30pm- German Industrial Production m/m, previous was at -3.1%, forecast is higher at 1.4%.
At 12.30pm- German Retail Sales m/m, previous was at -5.3%, forecasts is higher at 2.3%.
At 2.30pm – Italian Retail Sales m/m, previous was at -0.2%, forecast is slightly higher at 0.2%.
At 3.30pm – ECB President Lagarde Speaks
At 3.30pm – Final Employment Change q/q, previous was at 0.4%, forecast is unchanged at 0.4%.
At 3.30pm – Revised GDP q/q, previous was at 0.1%, forecast is unchanged at 0.0%..
At 3.30pm – Final Employment Change q/q, previous was at 0.4%, forecast is unchanged at 0.4%.
All above the data is expected to bring clutter for Euro and bullions prices.
UK Data and events
At 3.00PM- MPC Member Dhingra Speaks
Above speech could have a volatile impact on Pound.
Canada Data
At 8.30pm- BOC Rate Statement,
At 7.00pm – Overnight Rate, previous is 4.50%, forecast is 4.50%.
The Bank of Canada expects to hold overnight rates unchanged, it could have a mixed impact on base metals and dollar.
U.S. Data
At 8.30pm- Fed Chair Powell Testifies
At 8.30pm – JOLTS Job Openings, previous was at 11.01M, forecast is at 10.55M.
After yesterday’s speech, today’s testimony again brings clutter for the market.
At 9pm- Crude Oil Inventories, previous was at 1.2M, forecast is 1.6M. (Expect to have a positive impact on oil).