The dollar index continued to strengthen against its major peers for the fifth day in a row. The currency rose to near two-week highs on China’s downgraded credit rating and credit outlook, as well as signals from the European Central Bank (ECB) that it may keep rates on hold as faster-than-expected inflation slows in Europe. The dollar rose 0.28% from the previous day to 103.924 and is close to 103.639.
The JOLTS report showed that jobs in the world’s largest economy fell to 8.7 million on the last day of October, from 9.553 million on the last day of the previous month, suggesting a cooling labour market and it’s effect on the dollar index.
Activity in the US service sector offered more positive news, with the ISM non-manufacturing PMI rising to 52.7 in November, an improvement from 51.8 last month and clearly in growth territory.
Commodity prices including Bullions, Energy and Base Metals were noteworthy as the market reacted to several US economic indicators that could influence the Federal Reserve’s policy decisions.
MCX gold futures were down 0.24% at 62623. Silver was down 1.18% at 76400. Copper fell 1.01% to 712.95. Crude oil fell to 6082, down 1.20%. Natural gas up 1.88% to 228.10.
Economic data and events scheduled: Will They Affect the Dollar Index?
Eurozone
At 12.30pm- German Factory Orders m/m. Data is foreseen at 0.2%. Previous was at 0.2%.
At 3.30pm – Retail Sales m/m. Data is foreseen at 0.2% from previous -0.3%.
At 8.30pm – German Buba President Nagel Speaks.
Above data could have a volatile impact on the Eur.
UK
At 3.00pm – Construction PMI. Data is foreseen at 46.7 from previous 45.6.
At 4.00pm-
BOE Financial Stability Report.
FPC Meeting Minutes.
FPC Statement.
At 4.30pm – BOE Gov Bailey Speaks.
Above data could have a volatile impact on the pound.
Canada
At 7.00pm-
Labor Productivity q/q. Data is foreseen at 0.2% from previous -0.6%.
Trade Balance. Data is foreseen at 1.8B from previous 2.0B.
At 8.30pm- BOC Rate Statement. Overnight Rate, expect to keep unchanged at 5%.
Above data could have a volatile impact on the Canadian dollar.
U.S.–
At 6.45pm- ADP Non-Farm Employment Change. Data is foreseen at 129k from previous 113k.
At 7.00pm-
Revised Nonfarm Productivity q/q. Data is foreseen at 4.8% from previous 4.7%.
Revised Unit Labor Costs q/q. Data is foreseen at -0.9% from previous -0.8%.
Trade Balance. Data is foreseen at -64.1B from previous -61.5B.
At 9.00pm- Crude Oil Inventories. Foreseen at -2.9M previous was at 1.6M.
Above data could have a volatile impact on the dollar.
Commodity Samachar
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