The economic data for the day is in and all eyes are on the Japan inflation and US Consumer confidence.
The dollar held neutral trade on Monday, as focused shifted on U.S., European and Japanese inflation data to guide the global interest rate outlook.
Foreign exchange trade has been dominated by the hunt for “carry” in recent months, punishing low-yield currencies and supporting the dollar, while U.S. data has blown hot and cold and dented policymakers’ confidence on the rates outlook.
Bullions prices gained sharply, bolstered by the softer US Dollar and safe-haven flows amid the ongoing geopolitical tensions in the Middle East. On the other hand, higher short-term Treasury yields following hawkish Fed minutes and stronger US economic data are likely to support the Greenback in the near term.
Crude Oil prices rose over one percent in start of the week, in muted trade owing to public holidays in Britain and the United States after a downbeat week characterized by the outlook for U.S. interest rates in the face of sticky inflation.
Base metals prices stayed positive, buoyed by a price rally in key raw material alumina and fast-growing demand from the new energy sector. Prices of the light metal rallied on strong market fundamentals and funds buying this year.
The surge came with investors’ bets on looming shortages of alumina amid slow domestic production and news of overseas supply disruptions, including Rio Tinto
RIOdeclaring force majeure on Queensland alumina exports, further supported prices.
MCX gold futures settled +1.06% to 72009.Silver settled +4.48% to 94608.Copper settled +0.70% to 889.25. Crude oil +1.17% at 6547. Natural gas -1.08% to 210.70
Economic data and events scheduled
Japan
At 10.30am – BOJ Core CPI y/y. Data is foreseen at 2.2% from previous 2.2%.
Above mentioned economic data could have a positive impact on the Yen.
Eurozone
At 11.30am – German WPI m/m. Data is foreseen at 0.1% from previous 0.2%.
Above mentioned economic data could have a positive impact on the Euro.
UK
At 3.30pm – CBI Realized Sales. Data is foreseen at -27 from previous -44.00
Above mentioned economic data could have a negative impact on the Pound.
Canada
At 6.00pm-
IPPI m/m. Data is foreseen at 0.6% from previous 0.8%.
RMPI m/m. Data is foreseen at 3.1% from previous 4.7%.
Above data could have a neutral impact on the dollar.
US
At 6.00pm-
S&P/CS Composite-20 HPI y/y. Data is foreseen at 7.3% from previous 7.3%.
HPI m/m. Data is foreseen at 0.5% from previous 1.2%.
At 7.30pm- CB Consumer Confidence. Data is foreseen at 96.1 from previous 97.00
At 10.30pm- FOMC Member Cook Speaks.
Above data could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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