The dollar continued to strengthen on Thursday, but remained below the previous day’s high of 103.6290. The dollar recovered from overnight losses and rose slightly as US economic reports on weekly jobless claims and December data boosted Treasury yields. The dollar’s gains were limited as Thursday’s stock rally limited demand for dollar liquidity.
The US weekly initial jobless claims unexpectedly fell by -16,000 to a 16-month low of 187,000, indicating that the labor market was 205,000 stronger than expected. Housing also fell -4.3% m/m to 1,460 million in December, more than the expected 1,425 million.
In addition, December building permits, a proxy index for future construction, rose +1.9% m/m to 1.495 million, which is more than the expected 1.477 million euros. On the downside, the Jan Philadelphia Fed business outlook rose +2.2 to -10.6, a weaker than expected -6.5.
Crude oil prices rose on Thursday as a larger-than-expected decline in US crude and easing concerns about the demand outlook helped boost forecasts.
U.S. crude inventories fell by about 2.5 million barrels in the week ended Jan. 12, beating expectations for a draw of 331,000 barrels. Stockpiles of
gasoline, one of the refined products of crude oil, rose by about 3.1 million barrels, compared with expectations of about 2.2 million barrels, while distillate stocks increased by about 2.4 million barrels, compared with expectations of 880,000 barrels.
-Gold prices strengthened, supported by a weaker dollar and safe-haven demand amid the Middle East conflict, while investors awaited further clarity on interest rates from the US Federal Reserve and #039. Copper prices hit a six-week low, weighed down by uncertainty over interest rates and the recovery of the fragmented economy of China, the metal’s biggest consumer. Data on Wednesday showed that China missed forecasts for economic growth, while sales of strengthened real estate continued to fall.
MCX gold futures up 0.43% to 61769. Silver settled up 0.22% at 71615. Copper up 0.01% to 713.35. Crude oil up 2.53% at 6157. Natural gas down 4.65% to 225.5.
Economic data and events scheduled today.
Japan
At 5.00am- National Core CPI y/y. Data is foreseen at 2.3% from previous 2.5%.
At 10.00am – Tertiary Industry Activity m/m. Data is foreseen at 0.2% from previous -0.8%.
Above data could have a volatile impact on the Japanese Yen.
UK
At 12.30pm- Retail Sales m/m. Data is foreseen at -0.5% from previous 1.3%.
At 8.00pm- CB Leading Index m/m. Data is foreseen at 69.8 from previous 69.7.
Above data could have a volatile impact on the pound.
Eurozone
At 6.00pm- ECB Monetary Policy Meeting Accounts.
At 8.45pm- ECB President Lagarde Speaks
All above data could have a neutral impact on the Euro.
Canada
At 7.00pm-
Core Retail Sales m/m. Data is foreseen at 0.1% from previous 0.6%.
Retail Sales m/m. Data is foreseen at 0.0% from previous 0.7%.
Above data could have a negative impact on the Canadian dollar.
US
At 8.30pm- Prelim UoM Consumer Sentiment. Data is foreseen at 69.8 from previous 69.7.
Existing Home Sales. Data is foreseen at 3.83M from previous 3.82M.
Prelim UoM Inflation Expectations. Previous was at 3.1%.
Above data could have a volatile impact on the dollar.
Commodity Samachar
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