Bank of Canada policy Decision in Focus today
Dollar Index
The U.S. dollar held near a 2.5-month high at 104.10 on Tuesday, supported by expectations that the Federal Reserve will take a cautious approach to cutting interest rates, while a tight U.S. election race kept investors on edge.
The dollar’s strength, fueled by rising Treasury yields, continued to pressure the yen, euro, and sterling. This trend has been developing over recent weeks as traders scaled back expectations for rapid U.S. rate cuts.
Crude Oil:
Crude Oil prices rose over one percent, extending gains from the previous session as investors weighed the impact of China’s stimulus measures to boost its economy, and concerns over tension in the Middle East persisted. Brent crude futures LCOc1 for December delivery rose 68 cents, or 0.92%, to $74.97. U.S. West Texas Intermediate crude futures CLc1 for November delivery were up 66 cents at $71.22 a barrel on the contract’s last day as the front month.
Both Brent and WTI rose nearly 2% on Monday, recouping some of last week’s more than 7% decline, with no letup of fighting in the Middle East and the market nervous that Israel’s expected retaliation against Iran could disrupt oil supply.
Gold:
Gold climbed to a record high, trading not too far away from the record peak it hit in the last session, as concerns over rising geopolitical tensions, U.S. election uncertainties and prospects of central banks lowering interest rates boosted demand.
Copper:
Copper remained flat yesterday, with the three-month LME copper contract at $9,554.50 a ton. Metals will remain supported by China’s stockpiling for the energy transition, with copper set to gain the most. Copper also remains a strategic material in China. However, as China has scarce domestic reserves, import levels could remain high and relatively inelastic to prices.
Prices action (MCX)
Gold 78656 (+0.79%), Silver 99972 (+2.59%), Copper 818.850(+0.50%) Crude Oil 6040 (+1.31%) Natural gas 194.70 (+0.36%)
Major Economic Data and Event scheduled today (Bank of Canada policy)
Eurozone
At 7.30pm-
ECB President Lagarde Speaks.
Consumer Confidence. Data is foreseen at -12 from previous -13.
Above data could have a neutral impact on the Euro.
UK
At 6.30pm
MPC Member Breeden Speaks.
Above data could have a volatile impact on the Pound .
Canada
At 6.00pm-
At 7.15pm-
BOC Monetary Policy Report
BOC Rate Statement. Overnight Rate. Data is foreseen at 3.75% from previous 4.25%.
Above data and policy could have a volatile impact on the dollar.
US
At 6.30pm-FOMC Member Bowman Speaks.
At 7.30pm- Existing Home Sales. Data is foreseen at 3.88M from previous 3.86M.
At 8.00pm- Crude Oil Inventories.
At 9.30pm- FOMC Member Barkin Speaks.
At 11.30pm- Beige Book
Above data could have a volatile impact on the dollar.
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