The Economic Data for the day is in!!
The US dollar retreated from the day’s high against all major currencies except the yen yesterday. The currency was uncertain after data showed an unexpected slowdown in economic growth and an unexpected rebound in inflation, which could tie the Federal Reserve’s hands in cutting interest rates.
US gross domestic product increased at a 1.6% annualized rate in the January-March period, slower than the 2.4% rate expected by economists polled by Reuters.
The yen, meanwhile, hit a fresh 34-year low versus the dollar and a 16-year low against the euro in an anticipation that Bank of Japan (BOJ) policy meeting that ends on today to not be hawkish enough to support the Japanese currency.
Gold was narrowly mixed as a weaker dollar capped losses for the yellow metal, although expectations of a rate hike kept traders cautious about the yellow metal.
Bullions prices fell sharply from recent highs. peaks when tensions over the war between Iran and Israel weakened demand for the yellow metal.
Crude Oil prices rose slightly and were set for a positive end to the week amid bets on tighter supplies and persistent geopolitical unrest in the Middle East.
Concerns over disruptions to Middle East supplies also remained in play as Israel stepped up its strikes against Gaza. While a war with Iran did not materialize, the Israel-Hamas conflict showed few signs of stopping.
The U.S. was also set to mobilize more military aid for Israel after President Joe Biden approved a bill earlier this week.
Gold prices as waning safe haven demand and the prospect of higher-for-longer U.S. interest rates battered the yellow metal.
Bullion prices were nursing a sharp drop from record highs over the past week, as a potential conflict between Iran and Israel did not escalate as markets were fearing. This largely dented safe haven demand for the yellow metal.
Copper prices retreated from recent two-year highs as weak economic readings and fears of high interest rates somewhat offset optimism over tighter markets.
MCX gold futures settled + 0.23% to 71214.Silver settled +0.23% to 80684. Copper settled +0.80% to 852.85. Crude oil +0.32% at 6911. Natural gas -5.07% to 134.9.
Economic data and events scheduled today.
Japan
At 5.00am – Tokyo Core CPI y/y. Data is foreseen at 2.2% from previous 2.4%.
Tentative – BOJ Policy Rate. Data is foreseen at 0.10% from previous 0.10%.
Tentative – Monetary Policy Statement. BOJ Outlook Report. BOJ Press Conference.
All above policy and conference will have a volatile impact on the Yen.
Eurozone
At 12.30pm- Spanish Unemployment Rate. Data is foreseen at 11.8% from previous 11.8%.
At 1.30pm- M3 Money Supply y/y. Data is foreseen at 0.5% from previous 0.4%.
All above economic data could have a neutral impact on the Euro.
US
At 6.00pm-
Core PCE Price Index m/m. Data is foreseen at 0.3% from previous 0.3%.
Personal Income m/m. Data is foreseen at 0.5% from previous 0.3%.
Personal Spending m/m. Data is foreseen at 0.6% from previous 0.8%.
At 7.30pm-
Revised UoM Consumer Sentiment. Data is foreseen at 77.9 from previous 77.9.
Revised UoM Inflation Expectations. Previous 3.1%.
Above economic data could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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