fbpx

Will Chinese economic data and Eurozone CPI lead market sentiment?


Will Chinese economic data and Eurozone CPI lead market sentiment?

The economic data for the day is in.

The dollar rose yesterday after data showed US import prices rose 0.9% last month, adding to market fears that the Federal Reserve’s fight to contain inflation has stalled and could be delayed policy makers from cutting interest rates.

The market also was grappling with a drop in the number of Americans filing new claims for unemployment benefits last week that pointed to underlying strength in the U.S. labor market.

The jump in the price index for U.S. imports in April was the largest one-month increase since it rose 2.9% in March 2022, the Bureau of Labor Statistics said. Prices for U.S. imports last declined on a monthly basis in December.

Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 222,000 for the week ended May 11, the Labor Department said. Economists polled by Reuters had forecast 220,000 claims in the latest week.

Afte hitting a near one-month high, the gold prices retreated as the dollar inched up, while cautious comments from a Federal Reserve official dampened investors’ enthusiasm.

Crude Oil prices rebounded from the day’s low, extending gains from the prior session on signs of stronger demand in the U.S., the world’s largest consumer.

Copper prices on the Chicago Mercantile Exchange hovered near record highs on Thursday as buyers piled in expecting further gains due to sellers not being able to deliver the metal against their positions and having to roll them forward.

MCX gold futures settled -0.17% to 72980.Silver settled +0.50% to 87300. Copper settled +0.26% to 894.30. Crude oil +0.98% at 6615. Natural gas +4.63% to 208.10.

Economic data and events scheduled today.

China

At 7.00am- New Home Prices m/m. Previous data was at -0.34%.

At 7.30am-

Industrial Production y/y. Data is foreseen at 5.5% from previous 4.5%.

Retail Sales y/y. Data is foreseen at 3.7% from previous 3.1%.

Fixed Asset Investment ytd/y. Data is foreseen at 4.6% from previous 4.5%.

NBS Press Conference.

Unemployment Rate. Data is foreseen at 5.2% from previous 5.2%.

Above mentioned economic data could have a negative impact on the Yuan.

Eurozone

At 2.30pm-

Final Core CPI y/y. Data is foreseen at 2.7% from previous 2.7%.

Final CPI y/y. Data is foreseen at 2.4% from previous 2.4%.

Above data could have a volatile impact on the Euro.

Canada

At 6.00pm- Foreign Securities Purchases. Data is foreseen at 3.51B from previous -8.78B.

Above mentioned economic data could have a neutral impact on the dollar.

US

At 7.30pm-CB Leading Index m/m. Data is foreseen at -0.3% from previous -0.3%.

At 7.45pm- FOMC Member Waller Speaks.

At 9.45pm- FOMC Member Daly Speaks. Above data could have a volatile impact on the dollar

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

Also Read:Gold Price in Focus: Is it expected to turn neutral amid firm US dollar? Nifty Sustains Bull Run: What to Expect After the Breakout

Recommended Read:Breaking Down 5 Technical Analysis Myths: Let’s Get the Facts Straight!

Want help on your Trade?

Chat with Analyst