The U.S. dollar witnessed a smart recovery yesterday, which paused bullion’s recent upside momentum. Greenback recovered from two-month lows hit the previous session, as investors lightened their short positions to book profits ahead of the all-important U.S. non-farm payrolls report on Friday.
In late morning trading, the dollar index rose 0.30% to 101.882, led by gains against the euro, which fell 0.3% to $1.0925.
ADP National Employment report showed U.S. private employers hired far fewer workers than expected in March, suggesting a cooling labor market. Private employment increased by 145,000 jobs last month. Economists polled by Reuters had forecast private employment increasing 200,000.
Gold prices gave up some gains. Prices retreated from the day’s high of 61181 and settled at 60856, Silver settled at 74555, slipped from the day’s high of 75175.00. Crude oil paused its recent rally and settled down by 0.21% at 6605.
Base metals had a negative trade, copper settled almost flat at 766.90. Aluminum settled down by 1.13% at 205.80. Lead down by 0.28% at 180.80. Zinc settled down by 1.33% at 248.80.
Important Economic Data and Events
China
At 7.15am – Caixin Services PMI. Forecast is unchanged at 55.00.
Above data expect to have a neutral impact on Base metal.
Europe
At 11.30am – German Industrial Production m/m. Forecast is to have a contraction by -0.1% from 3.5% in last month.
Data could have a negative impact on Euro and bullions.
UK
At 11.30am – Halifax HPI m/m. Forecast is to have a contraction by -0.5% from 1.1% in last month.
At 2.00pm – Construction PMI. Forecast is to have a contraction by 53.4 from 54.6 in last month.
Tentative – Housing Equity Withdrawal q/q. Forecast is at 2.3B compared to -5.8B.
Above data could have a mixed impact on Pound.
Canada
At 6.00pm – Employment Change. Forecast is to have a contraction by 10.2k from 21.8k in last month.
Unemployment Rate at the same time. Forecast is to have expanded by 5.1% from previous 5.0%.
Data could have a positive impact on Base metals.
US
At 6.00 pm – Unemployment Claims with forecast to have expanded by 200k from 198k
All above data will have a slightly positive impact on the dollar.