With Bank of Japan and other data hitting the markets, what will be the market’s fate?
The US dollar traded neutral against a basket of currencies on Monday ahead of policy decisions by the Bank of Japan and the eurozone that could determine the currency and its likely direction this year.
Crude oil prices rose on Monday as traders weighed the impact of wars in the Middle East and Ukraine on oil supplies and economic headwinds that will dampen global oil demand.
Israel’s offensive in Gaza offers no respite, while Iran-allied Houthi attacks on merchant ships in the Red Sea continued despite US countermeasures.
Meanwhile, Russian energy company Novatek was forced to suspend part of its operations at its Baltic Sea fuel export terminal on Sunday after a fire it said was caused by a drone strike, according to Ukrainian media. The fire has been extinguished, local authorities said on Monday.
-Gold prices fell slightly as bets increased that the Federal Reserve will keep interest rates higher for longer, although some demand for safety and imminent dollar weakness kept the yellow metal above key levels.
Copper fell slightly on growing doubts about the economic recovery of top importer China after the country’s GDP figures increased in the last quarter.
Sentiment toward China showed little sign of improvement on Monday, as China’s central bank kept its key interest rate at a record low, indicating it has little room to ease policy and support growth.
MCX gold futures down 0.22% to 61868. Silver settled down 0.90% at 70816. Copper down 0.41% to 714.85 Crude oil up 2.60% at 6265. Natural gas down 3.84% to 202.80.
Economic data and events scheduled- Will Bank of Japan change the fate of the market?
Japan
Tentative –
Monetary Policy Statement.
BOJ Policy Rate. Expect to kept unchanged at -0.10% from previous -0.10%.
BOJ Outlook Report.
At 10.30am – BOJ Core CPI y/y. Data is foreseen at 2.8% from previous 2.7%.
Tentative – BOJ Press Conference.
Above data could have a volatile impact on the Japanese Yen.
UK
At 12.30pm- Public Sector Net Borrowing. Data is foreseen at 11.4B from previous 13.4B.
Above data could have a negative impact on the pound.
Eurozone
At 8.30pm- Consumer Confidence. Data is foreseen at -14 from previous -15.00
All above data could have a neutral impact on the Euro.
Canada
At 7.00pm- NHPI m/m. Data is foreseen at 0.0% from previous -0.2%.
Above data could have a positive impact on the Canadian dollar.
US
At 8.30pm- Richmond Manufacturing Index. Data is foreseen at -7.00 from previous -11.00.
Above data could have a neutral impact on the dollar.
Commodity Samachar
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