The Economic Data for the day is in.
The dollar strengthened against its major counterpart on Monday as investors awaited further clues on the course of US interest rates following cautious comments from Federal Reserve officials, even as inflation showed signs of cooling.
Federal Reserve officials are not ready to say inflation is heading to the U.S. central bank’s 2% target after data last week showed a welcome easing in consumer price pressures in April, with several on Monday calling for continued policy caution.
Bullion prices have jumped to new all-time highs on speculation as Chinese investors rush to safe havens, hopes of interest rate cuts rise and geopolitical tensions rise.
Crude oil fell as U.S. Federal Reserve officials said they were waiting for signs of slowing inflation before the central bank cuts interest rates.
Two top Fed officials said they’re not yet ready to say inflation trends are again moving sustainably back to the central bank’s 2% target, weighing in after data last week showed a welcome easing in consumer price pressures in April.
Copper surged to record highs on Monday as a recent rally triggered by short covering created momentum for speculators and funds to bet on higher prices of the metal used in the power and construction industries.
MCX gold futures settled +0.89% to 74367.Silver settled +4.66% to 95267. Copper settled +2.15% to 936.50. Crude oil -0.65% at 6619. Natural gas +4.75% to 227.10.
Economic data and events scheduled today.
Eurozone
At 11.30am- German PPI m/m. Data is foreseen at 0.2% from previous 0.2%.
At 1.30pm-
ECB President Lagarde Speaks
Current Account. Data is foreseen at 30.2B from previous 29.5B.
At 2.30pm- Trade Balance. Data is foreseen at 19.9B from previous 17.9B.
Above mentioned economic data could have a volatile impact on the Euro.
UK
At 3.30pm- CBI Industrial Order Expectations. Data is foreseen at -20 from previous -23.00
At 10.30pm- BOE Gov Bailey Speaks
The Above mentioned economic data could have a volatile impact on the pound.
Canada
At 6.00pm-
CPI m/m. Data is foreseen at 0.5% from previous 0.6%.
Median CPI y/y. Data is foreseen at 2.7% from previous 2.8%.
Trimmed CPI y/y. Data is foreseen at 2.9% from previous 3.1%.
Common CPI y/y. Data is foreseen at 2.8% from previous 2.9%.
Core CPI m/m. Previous was at 0.5%.
Above mentioned economic data could have a neutral impact on the dollar.
US
At 1.30pm- Treasury Sec Yellen Speaks.
At 6.30pm-
FOMC Member Waller Speaks
FOMC Member Barkin Speaks.
At 6.35pm- FOMC Member Williams Speaks.
At 6.40pm- FOMC Member Bostic Speaks.
At 9.15pm- FOMC Member Barr Speaks.
Above mentioned economic data could have a volatile impact on the dollar
Happy Trading
Commodity Samachar
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