The dollar sparked to a six-month high yesterday. The currency off from the day lows after U.S. data showed the services sector surprisingly picked up steam last month amid higher new orders and businesses paying elevated prices, suggesting persistent inflation pressure.
Data showed the Institute for Supply Management (ISM)’s non-manufacturing PMI rose to 54.5 last month, the highest reading since February and up from 52.7 in July. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy.
China’s services activity expanded at the slowest pace in eight months in August, a private-sector survey showed on Tuesday, as weak demand continued to dog the world’s second-largest economy and stimulus failed to meaningfully revive consumption.
Bullions and base metals retreated from the day’s high following the strength in dollar index against its major counterparts. Copper prices settled lower with markets anticipating more economic cues from major importer China. The country is set to release trade figures on today, with forecast of smaller declines in imports and exports
Crude oil extended its gain on Wednesday also, reversing early declines as traders anticipated further draws on U.S. crude oil inventory following extended production cuts in Saudi Arabia and Russia.
MCX Gold futures settled at 59088 down 0.26%. Silver at 72472 down 1.32%. Copper prices settled at 733.55 down 0.93%. Crude oil settled at 7305 up 1.21%. Natural gas settled at 211.40 down 2.22%.
Economic data and events scheduled today
China
Tentative – Trade Balance. Data is foreseen at 541B lower from previous 576B.
Tentative – USD-Denominated Trade Balance. Data is foreseen at 74.1B lower from previous 80.6B.
Above data could have a positive impact on the dollar.
Japan
At 10.30am – Leading Indicators. Data is foreseen at 107.9% from 108.9%.
Above data could have a neutral impact on Yen.
Eurozone
At 11.00pm – French Final Private Payrolls q/q. Previous was at 0.2%, forecast is 0.1%.
At 11.30pm – German Industrial Production m/m. Data is foreseen at -0.40%, previous was at -1.50%.
At 12.15pm – French Trade Balance. Data is foreseen at -6.8B from -6.7B.
At 1.30pm – Italian Retail Sales m/m. Previous was at 0.2%, forecast is -0.20%.
At 2.30pm – Final Employment Change q/q. Data is foreseen at 0.20%, previous was at 0.20%.
At 2.30pm – Revised GDP q/q. Data is foreseen a.t 0.3% from 0.3%.
Tentative – Spanish 10-y Bond Auction.
Tentative – French 10-y Bond Auction
All above data could have a volatile impact on the Euro.
U.K.
At 11.30pm – Halifax HPI m/m. Foreseen at -0.10%. Forecast is -0.30%.
All above data could have a neutral impact on the Pound.
Canada.
At 6.00pm – Building Permits m/m. Foreseen at -2.2%. Forecast is 6.10%.
At 7.30pm – Ivey PMI. Foreseen at 49.2 from 48.6.
At 11.25pm – BOC Gov Macklem Speaks
Above data could have a volatile impact on the dollar.
U.S.
At 6.00pm –
Unemployment Claims. Forecast is 232k, previous was at 228k.
Revised Nonfarm Productivity q/q. Forecast is 3.5% from 3.7%.
Revised Unit Labor Costs q/q. Foreseen at 1.8% from 1.6%.
At 7.30pm – FOMC Member Harker Speaks.
Tentative – IBD/TIPP Economic Optimism. Forecast is 41.1 previous was 40.30.
At 8.00pm – Natural Gas Storage.
At 8.30pm – Crude Oil Inventories.
At 9.15pm – FOMC Member Goolsbee SpeaksAll above data could have a volatile impact on the dollar
