Middle East conflict resulted in a speculative move in commodity and forex markets yesterday. U.S. dollar soar up as military clashes between Israel and the Palestinian Islamist group Hamas raised fears that the conflict could spread beyond Gaza.
The Bank of Israel earlier said it will sell up to $30 billion of foreign currency to maintain stability. Israeli government bonds also fell, with the 2120 Hundred Year bond down 5.3 cents on the dollar at a record low.
Israel on Monday said its troops had killed armed infiltrators entering the country from Lebanon, raising concern the war could widen to a second front, two days after Hamas gunmen burst in from Gaza on a deadly rampage.
Entire commodity prices sparked significantly amid raised fears that the conflict could spread beyond Gaza. The dollar index which measures the currency against six major counterparts rose 0.24% at 106.3540 (At 11.50pm). MCX Gold future settled at 57572 up 0.1.23%. Silver at 69094 up 1.36%. Copper prices settled at 711.40 up 0.78%. Crude oil settled at 7184 up 4.49%. Natural gas hit another multiple week high and settled at 281.30 up 1.96%.
Economic data and events scheduled today
Japan
At 10.30am – Economy Watchers Sentiment. Data is foreseen at 53.20 from previous 53.6.
Above data could have a neutral impact on the Yen.
Eurozone
At 1.30am – Italian Industrial Production m/m. Data is foreseen at -0.3% from previous -0.70%.
Tentative- ECB President Lagarde Speaks.
All above data could have a negative impact on the Euro.
U.K.
At 3.00pm- FPC Meeting minutes and FPC Statement
Above data could have a volatile impact on the pound.
U.S.
At 3.30pm- NFIB Small Business Index. Data is foreseen at 91.40 from previous 91.30.
At 7.30pm – Final Wholesale Inventories m/m. Data is foreseen at -0.1% from previous -0.1%.
At 10.30pm – FOMC Member Waller Speaks
DAY2 – IMF Meetings
All above data could have a Neutral impact on the dollar.