The U.S. dollar extended its fall for the second day amid bets that the Federal Reserve is done raising interest rates after holding them steady in the previous session as per the latest commodity market news.
Sterling, meanwhile, held firm after the Bank of England kept rates at a 15-year high and stressed that it did not expect to start cutting them any time soon.
Bank of England held interest rates at 15-year highs of 5.25% at its latest meeting on Thursday, the second straight month of steady rates after 14 back-to-back hikes.
New unemployment claims increased slightly in the U.S. to 217,000 in the week to Oct. 28, according to Labor Department data released on Thursday, but showed few signs of significant slowdown.
In Europe, a contraction in manufacturing activity in the euro zone deepened in October, with its Purchasing Managers’ Index (PMI) falling by 0.3 points on the month to 43.1. A score of below 50 signals contraction has been seen as per the latest commodity market news.
Oil prices gained a dollar a barrel on Thursday and were set to break a three-day declining streak as risk appetite returned to financial markets after the U.S. Federal Reserve kept benchmark interest rates on hold.
The dollar index which measures the currency against six major counterparts fell 0.52% at 106.112. MCX Gold future settled at 60890 up 0.17%. Silver at 71371 up 0.10%. Copper prices settled at 710.10 up 0.50%. Crude oil settled at 6896 up 1.98%. Natural gas settled 288.80 down 0.89%.
Commodity Market News | Economic data and events scheduled:
Eurozone
At 12.30pm – German Trade Balance. Data is foreseen at 16.3B from previous 16.6B.
At 1.15pm-
French Industrial Production m/m. Data is foreseen at 0.0% from previous -0.3%.
French Prelim Private Payrolls q/q. Data is foreseen at 0.2% from the previous 0.1%.
At 1.30pm- Spanish Unemployment Change. Data is foreseen at 11.2k from previous 19.8k.
At 2.30pm- Italian Monthly Unemployment Rate. Data is foreseen at 7.4%. Previous was at 7.3%.
At 3.30pm- Unemployment Rate. Data is foreseen at 6.4%. Previous was at 6.4%.
Above data could have a volatile impact on the Eur.
UK
At 3.00 pm- Final Services PMI. Data is foreseen at 49.2 from previous 49.2.
At 5.45pm – MPC Member Pill Speaks.
At 9.30pm- MPC Member Haskel Speaks.
Above data could have a neutral impact on the pound.
CANADA
At 6.00pm-
Employment Change. Foreseen at 25.7k Previous was at 63.8k.
Unemployment Rate. Foreseen unchanged at 5.6%. Previous was at 5.5%.
Above data could have a volatile impact on the Euro.
U.S.
At 6.00pm-
Average Hourly Earnings m/m. Data is foreseen at 0.3% from the previous 0.2%.
Non-Farm Employment Change. Data is foreseen at 178k from previous 336k.
Unemployment Rate. Data is foreseen at 3.8% from previous 3.8%.
At 7.15pm- Final Services PMI. Data is foreseen at 50.9 from previous 50.9.
At 7.30pm – ISM Services PMI. Data is foreseen at 53.0 from previous 53.6.
Above data could have a volatile impact on the dollar.
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Also Read: Commodity Market News | FOMC Statement: What Details Should You Know?, Copper Market News | Prices at Key Resistance: Will They Break?
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