US dollar slipped near a nine-month low yesterday, as traders continued to gauge the risks of a U.S. recession and the path for Federal Reserve policy.
Dollar Index which measures the greenback against a basket of six peers, including the euro and yen – slipped 0.09% to 101.92, heading back towards the 7-1/2-month low of 101.51 reached on Wednesday
Global commodities prices witnessed a smart recovery from the day’s low and settled with somewhat positive node. Comex gold prices up by 0.0.05% settled a $1928.60 while Silver dropped by 2.10%, settled at $23.55, as a sharp drop in stock markets as weak corporate earnings and softer-than-expected economic data pushed up concerns over a looming economic slowdown.
Crude oil prices settled at 6705, up 1.28%. Brent Crude oil had risen 5 cents to $88.24 per barrel by 0116 GMT, while U.S. West Texas Intermediate (WTI) crude rose 13 cents to $81.75 per barrel.
Crude oil prices in physical markets have started the year with a rally, as China, no longer held back by pandemic controls, has shown signs of more buying and as traders have worried that sanctions on Russia could tighten supply.
However, crude prices are wavering as the dollar stabilizes and over exhaustion from China-reopening headlines, according to OANDA analyst Edward Moya.
Today, economic data series start from Bank of Japan with Core CPI data at 10.30am forecast is at 2.9% unchanged as compared to previous reading of 2.9%. Data may have significant impact on Japanese Yen and dollar. Japanese inflation is running at a four-decade high and is double the BOJ 2% target but the BOJ is pushing back against market bets that the end of its long-standing, ultra-loose monetary policy is near.
At 12.30 pm – German GfK Consumer Climate forecast is at -33.0 as compared to previous reading -37.8, and UK German GfK Consumer Climate data forecast is at 22.3B as compared to previous reading 21.2B, both data expected to be favorable for Euro and GBP respectively.
Moreover, at 1.45 pm – French Flash Manufacturing PMI forecast 49.6 as compared to 49.2 and French Flash Services PMI forecast 49.7 as compared to previous reading 49.5 are scheduled to release which expected to have positive impact on Euro.
At 2 PM – German Flash Manufacturing PMI to release. Forecast is at 48.1 as compared to previous reading 47.1 and German Flash Services PMI forecast 49.60 as compared to previous reading 49.20, both data are expected to extend Euro gains.
At 3 pm – UK Flash Manufacturing PMI with forecast 45.4 as compared to previous reading 45.3 and Flash Services PMI with forecast 49.6 as compared to previous reading 49.9 are set to release which will bring some clutter for Pound, following to the forecast.
At 8.30 PM -US to release Flash Services PMI data with forecast 45.0 as compared to previous reading of 44.7. Moreover,At same time Flash Manufacturing PMI data with forecast 46.5 as compared to previous reading of 46.2. However, both data are expected to be impact on dollar.