The dollar edged lower against the euro and higher against the yen on Tuesday, but failed to find strong direction ahead of the conclusion of the Federal Reserve’s two-day meeting.
The U.S. central bank is expected to leave interest rates unchanged on Wednesday and investors will focus on any clues from Fed Chairman Jerome Powell on the likelihood of a rate cut in March.
Crude Oil fell on Wednesday as lacklustre economic data in China, the world’s biggest crude importer, weighed on demand sentiment, but prices were set for their first monthly gain since September as broadening Middle East conflicts raised supply concerns.
Gold remaining in a sideways trading range as investors geared up for the US Federal Reserve’s monetary policy decision later in the global day.
MCX gold futures up 0.13% to 62447. Silver settled down 0.05% at 72342. Copper up 0.38% to 734.72. Crude oil up 1.23% at 6478. Natural gas down 0.34% to 173.90.
Economic data and events scheduled today.
China
At 7.00am –
Manufacturing PMI. Data is foreseen at 49.3 from previous 49.00.
Non-Manufacturing PMI. Data is foreseen at 50.6 from previous 50.4.
Above data could have a positive impact on the Chinese Yuan.
Japan
At 10.30am –
Consumer Confidence. Data is foreseen at 37.6 from previous 37.2.
Housing Starts y/y. Data is foreseen at -6.6% from previous -8.5%.
Above data could have a negative impact on the Yen.
UK
At 12.30pm- Nationwide HPI m/m. Data is foreseen at 0.1% from previous 0.0%.
Above data could have a mixed impact on the pound.
Eurozone
At 12.30pm –
German Import Prices m/m. Data is foreseen at -0.6% from previous -0.1%.
German Retail Sales m/m. Data is foreseen at 0.6% from previous -2.5%.
All day– German Prelim CPI m/m. Data is foreseen at 0.1% from previous 0.1%.
At 1.15pm- French Prelim CPI m/m. Data is foreseen at 0.0% from previous 0.1%.
At 2.25pm – German Unemployment Change. Data is foreseen at 11k from previous 5k.
At 2.30pm- Italian Monthly Unemployment Rate. Data is foreseen at 7.5% from previous 7.5%.
At 3.30pm- Prelim Flash GDP q/q. Data is foreseen at -0.1% from previous -0.1%.
All above data could have a volatile impact on the Euro.
Canada
At 7.00pm – GDP m/m. Data is foreseen at 0.1% from previous 0.0%.
All above data could have a neutral impact on the Euro.
US
At 6.45pm- ADP Non-Farm Employment Change. Data is foreseen at 145k from previous 164k.
At 7.00pm- Employment Cost Index q/q. Data is foreseen at 1.0% from previous 1.1%.
At 8.15pm- Chicago PMI. Data is foreseen at 47.9 from previous 46.9.
At 9.00pm- Crude Oil Inventories. Previous -9.2M.
At 12.30am- Federal Funds Rate. Forecast to hold at 5.50% unchanged. FOMC Statement
At 1.00am- FOMC Press Conference
Above data could have a Volatile impact on the dollar.
Also Read :Â Eurozone GDP, US consumer confidence key drivers today , Will silver prices find support here?
Recommended Read :  Forex Newsletter – 30 Jan 2024