Bank of England policy, OPEC+ meeting will be in focus today

Bank of England policy, OPEC+ meeting will be in focus today

The dollar pared losses on Wednesday after the Federal Reserve held interest rates steady, but left the door open to a cut in borrowing costs at its next meeting in September, as widely expected.

The Federal Reserve’s latest rate call held rates steady at 5.50% for its July meeting, as markets generally expected, with Fed Chairman Jerome Powell stressing what must happen in US data before the US central bank starts to implement rate cuts.

In Asia, USD/JPY fell 1.4% to 150.66, with the yen soaring after the Bank of Japan hiking its benchmark short-term rate by 15 basis points to around 0.25% – the top end of market expectations. It also said that it will halve its pace of Japanese Government Bond purchases – to ¥3 trillion ($19.5 billion) from ¥6 trillion by the first quarter of 2026.

Gold futures gained over one percent as expectations for a U.S. interest-rate cut in the coming months and violence in the Middle East lifted the precious metal’s investment appeal.

Crude oil prices rose nearly 3% rebounding from seven-week lows after the killing of a Hamas leader in Iran ratcheted up tensions in the Middle East and a sharp drawdown in U.S. crude stockpiles.

U.S. crude stocks decreased by 3.4 million barrels last week, government data showed, more than thrice analysts’ expectations in a Reuters poll for a 1.1 million-drop. Stocks fell for a fifth straight week, the longest streak of drawdowns since January 2021.

Copper futures rebounding slightly from four-month lows as China’s leaders pledged to step up support measures and stabilize market confidence at a Politburo meeting to achieve full-year growth targets. Weak business activity data in China also raised the odds of further stimulus from authorities.

MCX gold futures settled +1.52% to 69,655. Silver settled +1.13% to 83,596. Copper settled +1.69% to 807.40. Crude oil +3.69% at 6,524. Natural gas -3.52% to 172.50.

Economic data and events scheduled today. (Bank of England policy)

China

At 7.00am-Caixin Manufacturing PMI. Data is foreseen at 51.4 from previous 51.8.

Above data could have a negative impact on the Yuan.

Eurozone

At 12.45pm- Spanish Manufacturing PMI. Data is foreseen at 52.50 from previous 52.3.

At 1.15pm- Italian Manufacturing PMI. Data is foreseen at 46.00 from previous 45.70.

At 1.20pm- French Final Manufacturing PMI. Data is foreseen at 44.10 from previous 44.10.

At 1.25pm-German Final Manufacturing PMI. Data is foreseen at 42.6 from previous 42.6.

At 1.30pm-

ECB Economic Bulletin.

Final Manufacturing PMI. Data is foreseen at 45.6 from previous 45.6.

Italian Monthly Unemployment Rate. Data is foreseen at 6.8% from previous 6.8%.

At 2.30pm- Unemployment Rate. Data is foreseen at 6.4% from previous 6.4%.

Above data could have a volatile impact on the Euro.

U.K.

At 4.30pm- BOE Monetary Policy Report. Monetary Policy Summary

MPC Official Bank Rate Votes. Data is foreseen at 0-6-3 from previous 0-2-7.

Official Bank Rate. Data is foreseen at 5.00% from previous 5.25%.

At 5.00pm- BOE Gov Bailey Speaks.

Above data and event could have a volatile impact on the Pound.

Canada

At 7.00pm- Manufacturing PMI. Previous was at 49.3.

                Above data could have a negative impact on the Euro.

US

At 6.00pm-

Unemployment Claims. Data is foreseen at 236k from previous 235k.

Prelim Nonfarm Productivity q/q. Data is foreseen at 1.7% from previous 0.2%.

Prelim Unit Labor Costs q/q. Data is foreseen at 1.8% from previous 4.00%.

At 7.15pm-

Final Manufacturing PMI. Data is foreseen at 49.5 from previous 49.5.

At 7.30pm-

ISM Manufacturing PMI. Data is foreseen at 48.8 from previous 48.5.

ISM Manufacturing Prices. Data is foreseen at 51.9 from previous 52.1.

Construction Spending m/m. Data is foreseen at 0.2% from previous -0.1%.

All day- Wards Total Vehicle Sales. Data is foreseen at 16.1M from previous 15.3M.

At 8.00pm-Natural Gas Storage

Above data could have a volatile on the dollar.

Happy Trading!
Commodity Samachar
Learn and Trade with Ease

Also Read : Will copper price continue to recover? Nifty Under Pressure ? Nifty Struggles to Breach 25000 Level

Recommended Read : In Focus China’s Panda Strategy: Cute Gesture or Economic Marvel to Boost the Yuan?

Want help on your trades?

Chat with our RM