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Core PPI in Focus: What Surprises Lie Ahead in Today’s Economic Calendar?


Core PPI in Focus: What Surprises Lie Ahead in Today's Economic Calendar?

The economic calendar for the day has it main focus point as the Core PPI.

The dollar index pared some losses against major currencies yesterday after the Federal Open Market Committee (FOMC) made more brutal than expected rate forecast changes.

The dollar managed to pare most of its losses to 104.68.3 from the day’s low of 104.2570 after weaker than expected consumer price index (CPI) numbers. of.

The Federal Reserve kept interest rates unchanged on Wednesday, but in a hawkish surprise the central bank now sees just one rate cut for the year, as inflation is expected to trend higher than previously expected.

The Federal Open Market Committee, the FOMC, kept its benchmark rate in a range of 5.25% to 5.5%.

While the unchanged decision, the eighth in a row, was largely expected, Fed members now believe that fewer rate cuts are needed this year.

The core personal consumption expenditures price index, the Fed’s preferred measure of inflation, is forecast to be 2.8% in 2024, up from a prior forecast of 2.6%. For 2025, inflation is estimated to be 2.3%, up from 2.2% previously.

Commodity prices including Bullions and base metals recovered from the day’s lows yesterday. As after the dollar tumbled after cooler-than-expected U.S. inflation data boosted expectations that the Federal Reserve could cut interest rates as soon as September.

Crude oil prices retreated moderately US inventories rise, IEA forecasts supply glut

Government data showed on Wednesday that U.S. oil inventories unexpectedly grew in the first week of June- by 3.7 million barrels, against expectations for a draw of 1.2 mb.

Outsized builds in distillates and gasoline stockpiles also drove up concerns that fuel demand was not picking up with the summer season as expected.

The build in inventories came as a monthly report from the International Energy Agency showed the agency slightly trimming its outlook for demand growth in 2024 by 100,000 barrels per day to 960,000 bpd.

MCX gold futures settled +0.67 to 71970.Silver settled +2.01% to 90445.Copper settled 1.05% to 867.20. Crude oil +0.78% at 6577. Natural gas -1.44% to 252.80.

Economic Calendar and events scheduled

Australia

At 7.00am-

Employment Change. Data is foreseen at 30.5K from previous 38.5k.

Unemployment Rate. Data is foreseen at 4.0% from previous 4.1%.

Above mentioned data in today’s economic calendar could have a positive impact on the dollar.

Eurozone

At 11.30am. German WPI m/m. Data is foreseen at 0.3% from previous 0.4%

At 1.30pm-Italian Quarterly Unemployment Rate. Data is foreseen at 7.4% unchanged.

At 2.30pm- Industrial Production m/m. Data is foreseen at 0.1% from previous 0.6%.

Above mentioned data in today’s economic calendar could have a neutral impact on the Euro.

U.K.

Tentative – BOE Quarterly Bulletin.

Above mentioned data in today’s economic calendar could have a mixed impact on the Pound.

US

At 6.00pm-

Core PPI m/m. Data is foreseen at 0.3%, previous was at 0.5%

PPI m/m. Data is foreseen at 0.1% from previous 0.5%.

Unemployment Claims. Data is foreseen at 225k from previous 229k.

At 8.00pm- Natural Gas Storage. Data is foreseen at 75B from previous 98B.

At 9.30pm-

treasury Sec Yellen Speaks.

FOMC Member Williams Speaks.

Above mentioned data in today’s economic calendar could have a volatile impact on the dollar.

Also Read: Nifty Hits New High, But Ends in Red: Is the Rally Sustainable?, ForexNewsLetter: US Inflation Slows to 3.3% in May, Below Expectations

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