The US dollar strengthen against its other Asian counterpart on Tuesday, as hotter than expected U.S. inflation data had markets considering the prospect of a rate cut from the U.S. Federal Reserve coming later than June.
The annualized reading rose by 3.2% last month, quicker than estimates for a 3.1% gain. Month-over-month, the overall consumer price index rose by 0.4% in February, in line with expectations
Crude Oil prices rebounded from the day’s lows on expectations of strong global demand, including in the world’s top consumer the United States, and as even somewhat sticky U.S. inflation did not dent expectations the Fed might start cutting rates soon.
Gold closed down from a record high on Tuesday as the dollar and treasury yields rose after the United States reported inflation ran hotter than expected in February, raising doubts the Federal Reserve will begin lowering interest rates as soon as June. Copper is nearly flat in early Asian trade but may be supported by expectations of tighter supplies. Investors appear to be increasing their bullish bets across metals.
MCX gold futures settled -0.84% to 65481.Silver settled -0.89% at 73850. Copper settled -0.10% to 736. Crude oil 0.06% at 6447. Natural gas -3.67% to 141.70.
Economic data and events scheduled today
China
Tentative- New Loans. Data is foreseen at 1510B from previous 4920B.
Tentative- M2 Money Supply y/y. Data is foreseen at 8.8% from previous 8.7%.
Above data could have a positive impact on the Yuan.
Eurozone
At 12.30pm- German WPI m/m. Data is foreseen at 0.2% from previous 0.1%.
At 2.30pm- Italian Quarterly Unemployment Rate. Data is foreseen at 7.3% from previous 7.6%.
At 3.30pm- Industrial Production m/m. Data is foreseen at -1.8% from previous 2.6%.
Above data could have a volatile impact on the Euro.
UK
At 12.30pm-
GDP m/m. Data is foreseen at 0.2% from previous 0.1%
Construction Output m/m. Data is foreseen at 0.0% from previous -0.5%.
Goods Trade Balance. Data is foreseen at -14.9B from previous -14.0B.
Index of Services 3m/3m. Data is foreseen at 0.0% from previous -0.2%.
Industrial Production m/m. Data is foreseen at 0.0% from previous 0.6%.
Manufacturing Production m/m. Data is foreseen at 0.0% from previous 0.8%.
Above data could have a volatile impact on the Pound.
US
At 8.00pm- Crude Oil Inventories. Data forecast at 0.9M from previous 1.4M.
At 10.31pm- 30-y Bond Auction.
Above data could have a Neutral impact on the dollar.
Commodity Samachar
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