Major Economic Data and Event scheduled today (Bank of Canada Labor report in Focus today)
FX Update
The dollar paused its upwards move Thursday after Federal Reserve Chair Jerome Powell failed to offer any strong clues that the U.S. central bank was likely to pause rate cuts in the near-term, after a widely expected 25 basis point reduction. Traders also closed out some profitable bets on a Donald Trump presidency after his election victory on Tuesday. Fed policymakers took note of a job market that has “generally eased” while inflation continues to move towards the U.S. central bank’s 2% target.
The dollar index traded at 104.36, down 0.72%.
Crude Oil:
Oil prices rose nearly 1% as the market weighed how President-elect Donald Trump’s policies would affect supplies and as drillers cut output while bracing for Hurricane Rafael. A strong dollar and lower crude imports in China limited gains..
Gold:
Gold prices rose more than 1%, helped by a retreat in the U.S. dollar, while the Federal Reserve cut interest rates by a quarter of a percentage point as widely expected.
Copper:
Copper prices rose over 2.50% yesterday, on hops of China stimulus and as prices rebounded from the previous session’s slump, triggered by a knee-jerk sell off after Donald Trump won the U.S. presidency.
Prices action (MCX)
Gold 77411 (+0.99%), Silver 92313 (+1.64%), Copper 849.90(+2.85%) Crude Oil 6129 (+0.89%) Natural gas 226.60 (-2.33%)
Major Economic Data and Event released yesterday
· German industrial production fell in September by 2.5% compared to the previous month, the federal statistics office said on Thursday.
· Fed cut rates by 25 basis points to 4.75% from 5% as expected, Powell said the economy could perform better next year than previously thought, and that inflation remains on a path back to the 2% target.
· US Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 221,000 for the week ended Nov. 2, the Labor Department said. Economists polled by Reuters had forecast 221,000 claims for the latest week.
· The Bank of England cut interest rates on Thursday for only the second time since 2020 and said future reductions were likely to be gradual as it predicted the British government’s first budget would lead to higher inflation and economic growth.
· The Monetary Policy Committee voted 8-1 to cut rates to 4.75% from 5%. Analysts polled by Reuters had expected a 7-2 vote. Only Catherine Mann favoured keeping rates on hold.
Major Economic Data and Event scheduled today (Bank of Canada Labor report in Focus today)
Japan
At 5.00am-
Household Spending y/y. Data is foreseen at -1.8% from previous -1.9%
Leading Indicators. Data is foreseen at 108.90% from previous 106.90.
Above data could have a neutral impact on the Yen.
Eurozone
At 12.30pm- French Trade Balance. Data is foreseen at -7.OB from previous -7.4B%.
At 2.30pm- Italian Industrial Production m/m. Data is foreseen at -0.4% from previous 0.1%.
At 14.30pm- Italian Retail Sales m/m. Data is foreseen at 0.2% from previous -0.5%.
Above data could have an mixed impact on the Euro.
UK
At 5.45pm- MPC Member Pill Speaks.
Above event could have a mixed impact on the Pound.
Canada
At 4.30pm – Gov Council Member Gravelle Speaks
At 7.00pm-
Canada Employment Change. Data is foreseen at 27.9k from previous 46.7k.
Unemployment Rate. Data is foreseen at 6.6% from previous 6.5%.
Above data could have a volatile impact on the Canadian dollar.
US
At 8.30pm-
Prelim UoM Consumer Sentiment. Data is foreseen at 71 from previous 70.5.
Prelim UoM Inflation Expectations. Previous 2.7%.
At 9.30pm- FOMC Member Bowman Speaks.
Above data could have a volatile impact on the dollar.
Until then, Happy Trading!
Commodity Samachar Securities
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Also Read: Will Fed Policy Lift Gold After Trump’s Market Correction? , Forex Focus: Oil Slips as Dollar Gains, China Demand Slows
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