The Economic data is out and it seems the Canadian jobs and German inflation are in the spotlight. The dollar strengthens against the major counterparts on Thursday after unemployment data again pointed to a resilient US labour market, reinforcing the US Federal Reserve’s message that interest rates will not be cut in the near future.
The dollar index traded at 104.172, up 0.12%.
In the latest economic data, the Americans who filed new jobless claims fell more than expected last week, the latest sign of labor market strength despite a recent surge in job losses.
Initial claims for government jobless benefits fell by 9,000 to a seasonally adjusted 218,000 in the week ended Feb. 3, the Labor Department said, below the 220,000 forecast by Reuters economists.
Israeli oil price rose more than 2%. and the impact of Hamas’s rejection of a cease-fire offer and the unexpected drop in US fuel supplies.
Israeli Prime Minister Benjamin Netanyahu rejected the latest Hamas standoff and the return of hostages held in the Gaza Strip, but US Secretary of State Antony Blinken said there is still room for talks.
Diplomatic efforts continue and a Hamas delegation arrived in Cairo on Thursday for ceasefire negotiations with mediators Egypt and Qatar.
Gold retreated on a stronger dollar and higher bond yields as hopes for an early rate hike from the US Federal Reserve faded, while palladium extended its decline on a weak long-term demand outlook.
Copper futures fell near a three-month low, down less than 5% since the start of the month, due to a strong US dollar and pessimistic industrial sentiment in China.
Continued macroeconomic headwinds in China, the world’s largest consumer, further weakened the outlook for base metals.
National deflation unexpectedly rose to a 14-year high, while the official manufacturing PMI showed a fourth straight decline in January.
MCX gold futures settled down 0.13% at 62443. Silver settled up 0.75% at 70837. Copper down 0.70% to 706.25 Crude oil up 2.87% at 6307. Natural gas down 2.60% to 161.20.
Economic data and events scheduled:
Japan
At 5.20am – M2 Money Stock y/y. Data is foreseen at 2.2% from previous 0.2%.
Above data could have a mixed impact on the Yen.
Eurozone
At 12.30pm- German Final CPI m/m. Data is foreseen at 0.2% from previous 0.2%.
At 2.30pm- Italian Industrial Production m/m. Data is foreseen at 0.8% from previous -1.5%.
At 4.00pm- German Buba President Nagel Speaks.
Above data could have a volatile impact on the Euro.
Canada
At 7.00pm-
Employment Change. Data is foreseen at 16.0k from previous 0.1K.
Unemployment Rate. Data is foreseen at 5.9% from previous 5.8%.
All above data could have a volatile impact on the dollar.
Commodity Samachar
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