The dollar strengthens against its major counterparts at the start of the week in the Commodity Market Today. The currency jumped towards its highest levels since November 2022, as speculation that central banks would maintain high interest rates to curb inflation spared demand for the safe haven.
A surge in the yield on the U.S. Treasury 10-year note by nine basis points marked a high of 4.53%, a level unseen since 2007, also weighed on the sentiment.
Crude oil prices retreated from the day’s high amid a lack of buying interest after last week’s loss triggered by concerns that the Federal Reserve could turn excessively hawkish with U.S. interest rates in the Commodity Market Today.
Bullions and base metals remained in pressure following the strong dollar. Meanwhile, China’s property developers are facing new signs of distress, underscored by China Evergrande Group’s decision to cancel a creditor meeting, and increased fears about its debt burden. This exacerbates concerns that global growth may decelerate as China’s economy struggles.
The dollar index which measures the currency against six major counterparts, was up 0.39% at 105.993. MCX Gold future settled at 58701 down 0.42%. Silver at 724150 down 1.62%. Copper prices settled at 713.90 down 0.01%. Crude oil settled at 7469 down 0.05%. Natural gas settled at 217.40 down 0.59%.
Commodity Market Today| Economic data and events scheduled:
Japan
At 10.30am – BOJ Core CPI y/y. Data is foreseen at 3.2% from the previous 3.3%.
Above data could have a neutral impact on the Yen.
China
At 6.30pm – CB Leading Index m/m. Previous was at -0.6%.
Above data could have a neutral impact on the Yen.
U.S.
At 6.30pm-
S&P/CS Composite-20 HPI y/y. Data is foreseen at 0.0% from previous -1.2%.
HPI m/m. Data is foreseen at 0.4% from previous 0.3%.
At 7.30pm –
CB Consumer Confidence. Data is Foreseen at 105.5, from previous 106.10.
New Home Sales. Data is foreseen at 699k from previous 714k.
Richmond Manufacturing Index. Data is foreseen at -6.00 from previous -7.00.
At 11.00pm – FOMC Member Bowman Speaks
All above data could have a negative impact on the dollar.
Commodity Samachar
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Also Read: Weekly Market Focus: US PCE vs Eurozone CPI