Dollar strengthened nearly 0.40% yesterday. Inched higher to a two-week high against a basket of currencies before the Federal Reserve is expected to hike interest rates by an additional 25 basis points and after data showed that U.S. manufacturing pulled off a three-year low in April.
Institute for Supply Management (ISM) said on Monday that its manufacturing PMI rose to 47.1 last month from 46.3 in March, which was the lowest reading since May 2020.
Gold prices retreated from the day’s high 60328 and settled at 59725. Silver price witnessed a speculative jump towards 77851 before settling at 75145, up by 1.87%.
Copper prices settled at 749.90, making an intraday high 760.95. But, prices struggled to hold upside momentum amid increasing signs of a manufacturing slowdown across the globe.
An unexpected decline in Chinese manufacturing activity ramped up concerns over slowing demand in the world’s largest copper importer.
Crude oil prices dropped down by -2.13% at 6152. Retreated from the day’s high 6231 as the market digests weak economic data from China and expectations of another U.S. interest rate hike.
Economic data and events to watch
Eurozone
At 11.30am – German Retail Sales m/m will be set to release. Data foreseen at 0.4% higher from previous -1.3%.
At 12.45pm – Spanish Manufacturing PMI will be released. Data foreseen at 49.8 lower from previous 51.3
At 1.15pm – Italian Manufacturing PMI will be released. Data foreseen at 49.4 lower from previous 51.1
At 1.20pm – French Final Manufacturing PMI will be released. Data foreseen at 45.5 unchanged from previous 45.5.
At 1.25pm – German Final Manufacturing PMI will be released. Data foreseen at 44.00 unchanged from previous 44.00.
At 1.30pm – Final Manufacturing PMI will be released. Data foreseen at 45.5 unchanged from previous 45.5.
At 2.30pm – CPI Flash Estimate y/y and Core CPI Flash Estimate y/y data will have to be watched. As it will give clues for the ECB meeting, due later this week.
Data foreseen at 7.0% slightly higher from previous 6.9%, while Core CPI will come expected to come at 5.6% slightly lower from 5.7%.
Italian Prelim CPI m/m at the same time will be released. Data foreseen at 0.3% as compared to contraction of -0.4%.
All above data could have a volatile impact on Euro and bullions prices.
U.K.
At 11.30am – Nationwide HPI m/m will be set to release. Data foreseen at -0.5% recover from previous -0.8%
At 2.00pm- Final Manufacturing PMI. Data is foreseen at 46.6, unchanged from previous 46.6.
Data will expect to have a positive impact on Pound.
US
At 7.30pm – JOLTS Job Openings due to be released. It will have a significant impact on dollar and bullions prices. Data is foreseen at 9.74M slightly higher from 9.93M.
JOLTS Job Opening at same time, will expect to come at 1.3% higher from 0.7% previous.
Both above data expect to have a positive impact on the dollar.