The Economic data for the day is taking an interesting turn as all focus falls on the Eurozone and US data. The US dollar was able to recover from the day’s low against the major currencies on Tuesday and was flat throughout the day as investors digested the latest comments from Federal Reserve officials on a possible interest rate hike.
Minneapolis Federal Reserve President Neel Kashkari told a Milken Institute conference that stagnant inflation, buoyed in part by the strength of the housing market, means the central bank must keep borrowing costs stable “for an extended period.” and maybe year-round.
Gold traded neutral yesterday as market participants awaited further clues from the US Federal Reserve for more clarity on the timing of potential rate hikes.
Crude Oil prices struggled for the gain, as traders weighed the US decision to continue buying oil from its emergency stockpiles and remained concerned about weakening demand ahead of this week’s latest US crude inventory data.
Copper was near a two-year high on a weaker dollar and increased supply. Doomy remarks from the Federal Reserve, along with a weaker-than-expected US jobs report, weighed on the dollar and supported the purchasing power of key foreign consumers, boosting base metal prices. This magnified ongoing supply concerns that triggered a sharp rally for copper in the second quarter.
Cobre Panama, the world’s largest open-pit copper mine was suspended, while power cuts in Zambia hit key mines.
MCX gold futures settled -0.31% to 71148.Silver settled -0.09% to 82878. Copper settled -0.20% to 865. Crude oil +0.66% at 6585. Natural gas -1.13% to 184.20.
Economic data and events scheduled
Eurozone
At 11.30am-
German Industrial Production m/m. Data is foreseen at -0.6% from previous 2.1%.
All day – French Bank Holiday.
At 1.30pm- Italian Retail Sales m/m. Data is foreseen at 0.2% from previous 0.1%.
Above mentioned economic data could have a volatile impact on the Euro.
US
At 1.30pm- Final Wholesale Inventories m/m. Data is foreseen at 0.2% from previous 0.1%.
At 8.00pm- Crude Oil Inventories. Data is foreseen at -1.0M from previous 7.3M.
At 8.30pm- FOMC Member Jefferson Speaks.
At 11.00pm- FOMC Member Cook Speaks.
Above mentioned economic data could have a neutral impact on the dollar
Happy Trading!
Commodity Samachar
Learn and Trade With Ease
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