The Economic Data for the day is a few, nonetheless very interesting!!
The US dollar found support from intraday lows on Tuesday as US central bank policymakers said it was prudent for the US central bank to wait a few more months for to ensure an inflation rebound. to 2% target before rate cuts begin
Against other currencies, the dollar was largely unchanged ahead of next week’s US Memorial Day holiday.
Fed Governor Christopher Waller told the Peterson Institute for International Economics in Washington, on Tuesday, he would need to see several more months of good inflation data before he would be comfortable supporting an easing in the stance of monetary policy.
Waller, however, did put a pin in any speculation that interest rates may need to rise again for demand to soften enough to ease price pressures further, saying the latest inflation data is “reassuring” and the probability of a rate hike is “very low.”
Gold prices retreated slightly following the firm dollar. Prices touched their life time high recently, supported by safe-haven buying and the prospect of interest rate cuts from the U.S. Federal Reserve later this year.
Crude Oil prices fell as industry data showed an unexpected build in U.S. inventories, while persistent concerns over high U.S. interest rates also kept sentiment subdued.
It was a fourth straight session in red, as fears of sluggish demand and easing concerns over geopolitical instability in the Middle East also sparked selling. Cooling optimism over an economic recovery in top importer China also dampened sentiment towards oil markets.
Copper prices traded around their record highs, as investors took a breather to assess the sustainability of the price rally amid a lack of robust physical demand.
MCX gold futures settled -0.47% to 74021.Silver settled -0.57% to 94725. Copper settled -0.14% to 935.15. Crude oil -0.77% at 6568. Natural gas -1.54% to 223.60.
Economic data and events scheduled:
Eurozone
Tentative – German 10-y Bond Auction-
Tentative – German Buba Monthly Report
Above mentioned economic data could have a volatile impact on the Euro.
UK
At 11.30am-
CPI y/y. Data is foreseen at % from previous 0.6%.
Core CPI y/y. Data is foreseen at 2.7% from previous 2.8%.
PPI Input m/m. Data is foreseen at 2.9% from previous 3.1%.
PPI Output m/m. Data is foreseen at -20 from previous -23.00
Public Sector Net Borrowing. Data is foreseen at 18.5B from previous 11.0B.
At 2.00pm- HPI y/y. Data is foreseen at 0.1% from previous -0.2%.
At 6.15pm- MPC Member Breeden Speaks.
Tentative – Monetary Policy Report Hearings.
Above mentioned economic data could have a volatile impact on the pound.
US
At 7.30pm- Existing Home Sales. Data is foreseen at 4.21M from previous 4.19M.
At 8.00pm- Crude Oil Inventories. Data is foreseen at -2.4M from previous -2.5M.
At 11.30pm- FOMC Meeting Minutes.
Above mentioned economic data and event could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
Also Read: Nifty Charges Higher: Bulls Flex Muscle with Another Green Close, Forex Newsletter: British Pound Near Two-Month Highs Before UK Inflation Data
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