The dollar index retreated against other currencies and fell to a 1-week low. The dollar was subdued after the US ADP jobs report for February showed that companies hired fewer workers than expected, a bad sign for central bank policy.
The dollar extended its losses after Federal Reserve Chairman Powell said it would probably be appropriate to start cutting borrowing costs “at some point this year.” The strength in stocks also weakened demand for dollar liquidity.
The U.S. Feb ADP employment change rose +140,000, weaker than expectations of +150,000.
The U.S. Jan JOLTS job openings fell -26,000 to 8.863 million, showing a slightly stronger labor market than expectations of 8.850 million.
Crude Oil prices climbed about 2% on Wednesday on a smaller-than-expected build in U.S. crude inventories, a big withdrawal from distillate and gasoline stockpiles and remarks by the Federal Reserve chief that he still expects U.S. interest rate cuts this year.
The U.S. Energy Information Administration (EIA) said energy firms added a smaller-than-expected 1.4 million barrels of crude into stockpiles during the week ended March 1, while distillate and gasoline inventories fell by much more than expected.
Gold rallied to a fresh record on Wednesday, building on stellar momentum driven mostly by bets for U.S. monetary easing, while autocatalyst palladium popped back above the $1,000 mark for the first time since Jan. 12.
MCX gold futures settled +0.51% to 65178.Silver settled +1.04% at 74138. Copper settled 0.64% to 730.80. Crude oil +1.84% at 6600. Natural gas 0.81% to 161.3.
Economic data and events scheduled today.
China
Tentative- Trade Balance. Data is foreseen at 620B from previous 541B.
Tentative- USD-Denominated Trade Balance. Data is foreseen at 110.3B from previous 75.3B.
Above data could have a positive impact on the Yuan.
Eurozone
At 12.30pm- German Factory Orders m/m. Data is foreseen at -6.0% from previous 8.9%.
At 6.45pm-
Main Refinancing Rate. Expect to hold unchanged at 4.5%.
Monetary Policy Statement.
At 7.15pm- ECB Press Conference
Above data could have a volatile impact on the Euro.
UK
At 12.30pm- Halifax HPI m/m. Data is foreseen at 0.8% from previous 1.3%.
Above data could have a neutral impact on the Pound.
Canada
At 7.00pm-
Building Permits m/m. Data is foreseen at 4.6% from previous s-14.0%.
Trade Balance. Data is foreseen at -0.1B from previous -0.3B.
Above data could have a neutral impact on the dollar.
US
At 7.00-Unemployment Claims. Data is foreseen at 217k from previous 215k.
Revised Nonfarm Productivity q/q. Data is foreseen at 3.1% from previous 3.2%.
Trade Balance. Data is foreseen at -63.4B from previous -62.2B.
At 8.30pm- Fed Chair Powell Testifies.
At 9.00pm- Natural Gas Storage. Data is foreseen at -42B from previous -96B.
At 10.00pm- FOMC Member Mester Speaks.
Above data could have a volatile impact on the dollar.
Commodity Samachar
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