The dollar extended its weakness yesterday also. The currency is close to four-month lows after the Federal Reserve signalled rate cuts next year. The Euro hit a two-week high against the U.S. dollar on Thursday as the European Central Bank pushed back against imminent interest rate cuts, a day after the Federal Reserve indicated that it is done hiking rates and is likely to cut them in 2024.
The Swiss National Bank held rates steady at 1.75%, as expected and acknowledged that inflationary pressure has decreased slightly over the past quarter.
The Bank of England left interest rates unchanged at 5.25% and said that interest rates needed to stay high for “an extended period”.
Crude oil paused its falls and recovered, boosted by a weaker dollar and as the International Energy Agency (IEA) lifted its oil demand forecast for next year. World oil consumption will rise by 1.1 million barrels per day (bpd) in 2024, the IEA said in a monthly report, up 130,000 bpd from its previous forecast, citing an improvement in the outlook for the United States and lower oil prices
Gold jumped to a one week high after the US Federal Reserve signaled the end of its tightening cycle and signaled a reduction in borrowing costs in 2024, sending the dollar and Treasuries lower. Copper sparked more than 2%, on a weaker dollar and expectations of interest rate cuts next year that would boost economic growth and metals demand.
The US dollar index fell to 101.788, down 0.93% on the day and the lowest level since November 30. The euro rose 1.22% to $1.1006, the highest since December 1. MCX gold futures at 62823 rose 1.98%. Silver increased by 4.76% at 76135. The price of copper reached 727.15, increasing by 1.88%. The price of crude oil rose 4.08% at 6017. Natural gas up 0.15%, at 196.60.
Economic Data and Events Scheduled – Will Flash Manufacturing PMI and Service PMI take over?
China
At 7.30am-
Industrial Production y/y. Data is foreseen at 5.7% from previous 4.6%.
Retail Sales y/y. Forecast 12.6% from previous 7.6%.
Fixed Asset Investment ytd/y. Data is foreseen at 3.0% from previous 2.9%.
Unemployment Rate. Data is foreseen at 5.0% from previous 5.0%.
Tentative – Foreign Direct Investment ytd/y. Previous was at -9.4%.
Above event could have a volatile impact on the Yuan.
Eurozone
At 1.15pm- French Final CPI m/m. Data is foreseen at -0.2% from previous -0.2%.
At 1.45pm-
French Flash Manufacturing PMI. Data is foreseen at 43.3 from previous 42.9.
French Flash Services PMI. Data is foreseen at 46.1 from previous 45.4.
At 2.00pm-
German Flash Manufacturing PMI. Data is foreseen at 43.1 from previous 42.6.
German Flash Services PMI. Data is foreseen at 49.9 from previous 49.6.
At 2.30pm-
Flash Manufacturing PMI. Data is foreseen at 44.5 from previous 44.2.
Flash Services PMI. Data is foreseen at 49.0 from previous 48.7.
At 3.30m-
Italian Trade Balance. Data is foreseen at 3.45B from previous 2.35B.
Trade Balance. Data is foreseen at 10.3B from previous 9.2B
Above data could have a volatile impact on the Eur.
UK
At 3.00pm-
Flash Manufacturing PMI. Data is foreseen at 47.6 from previous 47.2
Flash Services PMI. Data is foreseen at 51.0 from previous 50.9.
Above data could have a volatile impact on the pound.
Canada
At 6.45pm- Housing Starts. Data is foreseen at 262k from previous 275k.
At 7.00pm- Foreign Securities Purchases. Data is foreseen at -3.98B from previous -15.09B.
At 10.55pm- BOC Gov Macklem Speaks.
Above data could have a negative impact on the Canadian dollar.
U.S.
At 7.45pm –
Industrial Production m/m. Data is foreseen at 0.3% from previous -0.6%.
Capacity Utilization Rate. Data is foreseen at 79.1% from previous 78.9%.
At 8.15pm-
Flash Manufacturing PMI. Data is foreseen at 49.5 from previous 49.4.
Flash Services PMI. Data is foreseen at 50.7 from previous 50.8.
Above data and event could have a volatile impact on the dollar.
Commodity Samachar
Learn and Trade with Ease
Also Read: Forex Newsletter – With Central Bank Policies in the Horizon, It’s Raining money in the market!!, The 24-Hour Drama of Central Bank and Their Influence on Currencies!
Recommended Read: All Roads Lead to the US: What’s the Future of the US leading up to the Fed meeting?
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