The U.S. dollar weakened against most currencies on Wednesday after the Federal Reserve held interest rates steady and acknowledged the tighter financial conditions faced by businesses and households as per the latest commodity market news.
The policy-setting Federal Open Market Committee (FOMC), as expected, left rates in the 5.25%-5.50% range where they have been since July. The Fed did not rule out another hike as it acknowledged the economy’s unexpected resilience despite its aggressive tightening launched more than a year ago.
Fed Chair Jerome Powell said that market borrowing costs would need to be sustainably higher for that to bear on future central bank monetary policy choices.
Gold rebounded from the day’s low following the weakness in the dollar as per the latest commodity market news. Crude oil found support as weak U.S. economic readings and middling comments from the Federal Reserve saw traders pricing in a diminished chance of more interest rate hikes, denting the dollar.
The dollar index, which measures the currency against six major counterparts, fell 0.04% at 106.6740. MCX Gold future settled at 60785 down 0.25%. Silver at 71298 down 0.52%. Copper prices settled at 706.60 down 0.09%. Crude oil settled at 6762 down -0.29%. Natural gas settled 291.40 down 3.25%.
Commodity Market News | Economic data and events scheduled today.
Eurozone
At 1.45pm – Spanish Manufacturing PMI. Data is foreseen at 47.10 from previous 47.70.
At 2.15pm- Italian Manufacturing PMI. Data is foreseen at 46.30 from previous 46.80.
At 2.20pm- French Final Manufacturing PMI. Data is foreseen at 42.60 from previous 42.60.
At 2.25pm-
German Final Manufacturing PMI. Data is foreseen at 40.70. Previous was at 40.70.
German Unemployment Change. Data is foreseen at 14k. Previous was at 10k.
At 2.30pm – Final Manufacturing PMI. Data is foreseen at 43.0 from previous 43.0.
Above data could have a volatile impact on the Eur.
UK
At 5.30pm-
BOE Monetary Policy Report. Monetary Policy Summary
MPC Official Bank Rate Votes. Foreseen at 2-0-7. Previous was 4-0-5.
Official Bank Rate. Foreseen unchanged at 5.25%. Previous was at 5.25%.
At 6.00pm – BOE Gov Bailey Speaks.
Above data could have a volatile impact on the Euro.
U.S.
At 6.00pm-
Unemployment Claims. Data is foreseen at 210k from previous 210k.
Prelim Nonfarm Productivity q/q. Data is foreseen at 4.2% from previous 3.5%.
Prelim Unit Labor Costs q/q. Data is foreseen at 0.4% from the previous 2.2%.
At 7.30pm- Factory Orders m/m. Data is foreseen at 2.2% from the previous 1.2%.
At 8.00pm – Natural Gas Storage. Data is foreseen at 81B from previous 74B.
Above data could have a volatile impact on the dollar.
Commodity Samachar
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