Volatility continued remained in global commodity for second consecutive day. As China demand and Rate hike jitters weighting on the sentiment. Yellow Metal and Crude oil prices retreated from the day’s high.
Crude Oil fell from the day’s highs U.S. crude inventories welled to their highest in months, while the prospect of the Federal Reserve continuing with an aggressive rate hike path sparked fears about weakening fuel demand. This also pressured on GOLD prices
MCX Gold Future settled at 56852, down 0.64%. Comex Gold future down 0.77%settled at $1860.10 an once.
MCX CRUDE OIL retreated 0.77%, settled at 6422.Brent crude futures down 1.02%, to $84.18 a barrel, while West Texas Intermediate crude (WTI) down 0.82% to $77.61.
Copper prices was able to gain 0.45% and settled at 775.20.
Volatility could expect during European trading today
Economic calendar starts with CHINA CPI data. Scheduled to release at 7.00am. Data is foreseen slightly higher at 2.2%, from previous 1.8%, which might have strong impact for entire market
Bunch of significant economic indicator will release from UK at 12.30 pm
GDP data foreseen contraction at -0.3%, from previous 0.1%, this could have a significant negative impact on GBP as well for base metals.
Construction Output m/m and Goods Trade Balance, both data expected to come slightly lower from previous at -0.2% Vs previous 0.0%, -17.2B Vs previous -15.6B, respectively. Which could extend bearish momentum for GBP.
Industrial Production m/m and Manufacturing Production m/m, may have neutral impact on GBP.
Prelim Business Investment q/q, data foreseen slightly lower than previous at -0.3% from -2.5%.
All above data from UK will bring clutter during European trading.
At 2.30pm- Italian Industrial Production m/m ischeduled to release. Data foreseen positive from previous at 0.2% Vs -0.3%,which could have slightly positive impact on Euro and for Bullion.
At 7:pm – Canada Employment Change and Unemployment Rate due to released. Both data expected to come better from previous reading at 15.0K Vs 104.0k, 5.1% Vs previous 5.0%, which could have positive impact on Metal and dollar.
At 8.30pm – U.S. Prelim UoM Consumer Sentiment will bring clutter for dollar. Data is foreseen slightly positive at 65.0 Vs previous 64.9.y
At 11.00pm – FOMC Member Harker Speaks due to release, which could create jitters about FED rate decision.