The FED is in focus and we’ve got our hands full with a lot of data. Let’s dive in!
The dollar strengthened against the yen and other currencies for a second day ahead of the start of the latest Federal Reserve meeting, while the Japanese yen fell even as the Bank of Japan ended its negative interest rate policy.
The yen tumbled on Tuesday after the Bank of Japan’s momentous, but widely anticipated, decision to end its negative interest rate policy, while the dollar strengthened ahead of the Federal Reserve’s latest outlook for rates.
With Japan’s first-rate hike in 17 years, the BOJ said it would guide the overnight call rate – its new policy rate – in a range of zero to 0.1%, adding that it expected “accommodative financial conditions” to be maintained for the time being.
That is likely to keep pressure on the yen, as rate differentials between Japan and the United States remain stark.
Gold prices retreated on Tuesday as the dollar strengthened a day before the Federal Reserve signals its interest rate stance at the end of the U.S. central bank’s two-day policy meeting.
Copper prices fell in London on Tuesday as investors locked in profits from the metal’s recent rally and the dollar rose ahead of a U.S. Federal Reserve decision on interest rates.
Crude Oil prices edged up early on Tuesday, rising to fresh five-month highs on optimism over Chinese demand amid continuing OPEC+ supply cuts.
MCX gold futures settled -0.04% to 65583.Silver settled -0.27% at 75287. Copper settled -1.20% to 756.40. Crude oil +1.55% at 6944. Natural gas +2.19% to 144.8
Economic data and events scheduled – Will the FED data take over?
China
At 6.45am –
1-y Loan Prime Rate. Forecast 3.45%, previous 3.45%.
5-y Loan Prime Rate. Data is foreseen at 3.95% from previous 3.95%.
Above rate decision will have a neutral impact on the Yuan.
Eurozone
At 10.00am- German Buba President Nagel Speaks.
At 12.30pm – German PPI m/m. Data is foreseen at -0.1% from previous 0.2%.
At 2.15pm- ECB President Lagarde Speaks.
At 2.30pm- Italian Industrial Production m/m. Data is foreseen at -0.6% from previous 1.1%.
At 8.30pm- Consumer Confidence. Data is foreseen at -15 from previous -16.00.
Above data could have a mixed impact on the Euro.
UK
At 12.30pm –
CPI y/y. Data is foreseen at 3.5% from previous 4.0%.
Core CPI y/y. Data is foreseen at 4.6% from previous 5.1%.
PPI Input m/m. Data is foreseen at 0.2% from previous -0.8%.
PPI Output m/m. Data is foreseen at 0.1% from previous -0.2%.
RPI y/y. Data is foreseen at 4.5% from previous 4.9%.
Above data could have a negative impact on the Pound.
Canada
At 11.00pm- BOC Summary of Deliberations
Above data could have a neutral impact on the dollar
US
At 11.30pm-
Federal Funds Rate. Forecast 5.50% from previous 5.50%.
FOMC Economic Projections. FOMC Statement.
Above data could have a volatile impact on the dollar.
Commodity Samachar
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