The dollar hovered close to the highest level in seven weeks, after Federal Reserve Chair Jerome Powell pushed back on the idea of a first U.S. interest rate cut as soon as March in yesterday policy meet.
This came after the Federal Reserve offered the prospect of a neutral and less unusual interest rate than many investors expected.
The Federal Reserve kept its benchmark interest rate steady at 5.25% to 5.50%, as widely expected.
However, in its monetary policy statement, it said it will not cut interest rates until it is more confident that inflation will sustainably move to 2%, increasing risk and helping the USD rise.
ADP’s National Employment Report showed Wednesday that private sector payrolls increased by 107,000 jobs last month, less than economists 145,000 jobs are expected.
Crude oil fell more than 2% on news of a weaker-than-expected global economy that weighed on energy demand and oil prices. Crude oil losses accelerated after todays and weekly EIA reports showed a surprise increase in crude inventories and gasoline stocks rose to a three-year high.
Supportive factors include a weaker dollar and continued geopolitical risks in the Middle East.
Gold rose on Wednesday but was on track for a three-month winning streak as markets were closed for talk of the US Federal Reserve and the outlook for benchmark interest rates later in the day.
Copper rose to a one-month high on Wednesday as the dollar fell on weaker-than-expected US jobs data that investors believe the Federal Reserve may start cutting interest rates
MCX gold futures up 0.16% to 62735. Silver settled down 0.14% at 72247. Copper down 0.22% to 733.25. Crude oil down 2.56% at 6313. Natural gas up 1.75% to 179.90.
Economic data and events scheduled today.
China
At 7.15am –Caixin Manufacturing PMI. Data is foreseen at 50.8 from previous 50.8.
Above data could have a positive impact on the Chinese Yuan.
UK
At 3.00pm- Final Manufacturing PMI. Data is foreseen at 47.3 from previous 47.3.
At 5.30pm-
BOE Monetary Policy Report. Monetary Policy Summary
MPC Official Bank Rate Votes. Foreseen at 2-0-7 previous 3-0-6.
Official Bank Rate. Foreseen at 5.25% from previous 5.25%.
At 6.00pm- BOE Gov Bailey Speaks.
Above data could have a mixed impact on the pound.
Eurozone
At 1.30pm – ECB President Lagarde Speaks.
At 1.45pm- Spanish Manufacturing PMI. Data is foreseen at 47.9 from previous 46.2.
At 2.15pm-– Italian Manufacturing PMI. Data is foreseen at 47.00 from previous 45.3.
At 2.20pm- French Final Manufacturing PMI. Data is foreseen at 43.2 from previous 43.2
At 2.25pm – German Final Manufacturing PMI. Data is foreseen at 45.4 from previous 45.4.
At 2.30pm- Final Manufacturing PMI. Data is foreseen at 46.6 from previous 46.6.
At 3.30pm-
Core CPI Flash Estimate y/y. Data is foreseen at 3.2% from previous 3.4%.
CPI Flash Estimate y/y. Data is foreseen at 2.7% from previous 2.9%.
Italian Prelim CPI m/m. Data is foreseen at 0.5% from previous 0.2%.
Unemployment Rate. Data is foreseen at 6.4% from previous 6.4%
All above data could have a volatile impact on the Euro.
Canada
At 8.00pm – Manufacturing PMI. Previous was at 45.4.
All above data could have a neutral impact on the Canadian dollar.
US
At 7.00pm-
Unemployment Claims. Data is foreseen at 213k from previous 214k.
Prelim Nonfarm Productivity q/q. Data is foreseen at 2.4% from previous 5.2%.
Prelim Unit Labor Costs q/q. Data is foreseen at 1.3% from previous -1.2%.
At 8.15pm- Final Manufacturing PMI. Data is foreseen at 50.3 from previous 50.3.
At 8.30pm-
ISM Manufacturing PMI. Data is foreseen at 47.2 from previous 47.4.
Construction Spending m/m. Data is foreseen at 0.5% from previous 0.4%.
At 9.00pm- Natural Gas Storage. Forecast -202B from previous -326B.
Above data could have a Volatile impact on the dollar
Also Read : Eurozone GDP, US consumer confidence key drivers today , Crude Oil – Volatile Pace at OPEC + Meeting today
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