The Economic Data of the day is in. The dollar retreated from the day’s high 105.527 at 105.265. As weaker-than-expected U.S. producer prices for March partly eased market concerns about persistent inflation, suggesting that even with recent strong economic data, interest rate cuts by the Federal Reserve are still firmly on the table.
Crude prices traded moderately lower. Strength in the dollar index to a 4-3/4-month high pressured energy prices. Crude also has some negative carryover from Wednesday when EIA crude inventories rose more than expected to a 9-month high.
Gold prices firmed after softer-than-expected U.S. producer prices data boosted hopes for U.S. rate cuts this year, while persistent geopolitical concerns added to the metal’s shine.
A Labor Department report showed the Producer Price Index (PPI) rose 0.2% month-on-month in March, compared with a 0.3% increase expected by economists polled by Reuters
Copper prices edged lower on weak consumer inflation data in top metals consumer China and a firm dollar. Data on Thursday showed China’s consumer inflation cooled more than expected in March, while producer price deflation persisted as demand remained weak.
MCX gold futures settled +0.54% to 71644. Silver settled +0.28% to 82847. Copper settled -0.31% to 816.55. Crude oil -0.70% at 7109. Natural gas -6.34% to 147.7.
Economic data and events scheduled today
China
Tentative – Trade Balance. Data is foreseen at 508B from previous 891B.
Tentative – USD-Denominated Trade Balance. Data is foreseen at 70.2B from previous 125.2B.
Above economic data could have a negative impact on the Yuan.
Japan
At 10.00am- Revised Industrial Production m/m. Data is foreseen at -0.1% from previous -0.1%.
Above economic data could have a neutral impact on the Yen.
Eurozone
At 11.30am- German Final CPI m/m. Data is foreseen at 0.4%, unchanged from previous.
At 12.15pm- French Final CPI m/m. Data is foreseen at 0.2%, unchanged from previous.
Above data could have a neutral impact on the Euro.
UK
At 11.30am-
GDP m/m. Data is foreseen at 0.1% from previous 0.2%.
Construction Output m/m. Data is foreseen at -0.4% from previous 1.1%.
Goods Trade Balance. Data is foreseen at -14.5B from previous -14.5B.
Index of Services 3m/3m. Data is foreseen at 0.1% from previous 0.0%.
Industrial Production m/m. Data is foreseen at 0.0% from previous -0.2%.
Manufacturing Production m/m. Data is foreseen at 0.1% from previous 0.0%.
Above data could have a volatile impact on the pound.
US
At 7.30pm-
Prelim UoM Consumer Sentiment. Data is foreseen at 79.00 from previous 79.4.
Prelim UoM Inflation Expectations. Previous was at 2.9%.
Above data could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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