The US dollar retreated against the major counterparts following easing Treasury yields as per the latest commodity market news. Which dropped significantly on the back of further dovish comments by Federal Reserve officials, as well as the prospect of stimulus from China.
Treasury yields edged lower after Atlanta Fed President Raphael Bostic, in the latest comments this week by Fed speakers, said the U.S. central bank does not need to increase interest rates any further.
However, minutes from the Fed’s last policy later today and key U.S. inflation data is set to release on Thursday, which will decide the near term trend for both instruments. Adding to this, conflict between Israel and the Palestinian Islamist group Hamas, continued to weigh on the sentiment.
Bullions pared its intraday gains and investors cautiously turned back ahead of the U.S. central bank policy and inflation data. Crude oil remained in a consolidation mood focused on demand levels but still cautious as they watched for potential supply disruptions amid military clashes between Israel and the Palestinian Islamist group Hamas. Copper prices slipped from the day’s high as jitters about demand in top consumer China were reinforced by Chinese property giant Country Garden’s warning that its ability to meet offshore debt obligations faced “significant challenges” as per the latest commodity market news.
The dollar index which measures the currency against six major counterparts fell 0.28% at 105.7650(At 11.50pm). MCX Gold future settled at 57629 up 0.10%. Silver at 68918 down 0.25%. Copper prices settled at 705.25 down 0.86%. Crude oil settled at 7161 down 0.32%. Natural gas settled at 280.80 down 0.18%.
Commodity Market News | Economic data and events scheduled
Japan
At 11.30am- Prelim Machine Tool Orders y/y. Previous was at -17.6%.
Above data could have a neutral impact on the Yen.
Eurozone
At 11.30am – German Final CPI m/m. Data is foreseen at 0.3% from previous 0.3%.
All above data could have a neutral impact on the Euro.
U.K.
Tentative – 10-y Bond Auction
Above data could have a neutral impact on the pound.
China
Tentative – New Loans. Forecast is 2500B from the previous 1360B.
Tentative – M2 Money Supply y/y. Forecast is 10.7% from the previous 10.6%.
Above data could have a positive impact on the Chinese Yuan.
Canada
At 6.00pm- Building Permits m/m. Data is foreseen at 1.5% from previous -1.5%.
At 7.30pm – Final Wholesale Inventories m/m. Data is foreseen at -0.1% from previous -0.1%.
U.S.
At 1.45pm – FOMC Member Bowman Speaks.
At 6.00pm-
Core PPI m/m. Data is foreseen at 0.2% from the previous 0.2%.
PPI m/m. Data is foreseen at 0.3% from the previous 0.7%.
At 7.45pm – FOMC Member Waller Speaks.
At 11.30pm – FOMC Meeting Minutes
DAY 3 – IMF Meetings
All above data could have a volatile impact on the dollar.
Commodity Samachar
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Also read: Cluster of Inflation data and speech. What will impact this week?, Commodity Market News | It’s a light economic calendar day today.