The Economic Data for the day is in and the Trifecta of events is set to happen today. The Uk budget, Fed Statement and BOC Policy is in focus.
The dollar fell against the major currencies on Tuesday after data showed US service sector growth slowed and investors anticipated a busy week that includes a rate decision by the European Central Bank Bank, Congressional statement by the Fed President. Jerome Powell and American jobs.
The ISM said its non-manufacturing PMI slipped to 52.6 last month from 53.4 in January. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy. Economists polled by Reuters had forecast the index little changed at 53.0.
Crude oil prices were flat in early US trading on Tuesday, paring some of the session’s earlier losses and giving little support to top importer China’s forecast of moderate economic growth in 2024.
Speculation and fears about Israel- Hamas. The ceasefire also continued to have an effect, largely compensating for the more difficult supply outlook.
Gold hit a record high on Tuesday ahead of Federal Reserve Chairman Jay Powell’s testimony to Congress, Friday’s nonfarm payrolls report and concerns about China. A slowdown in US industrial and construction spending and the loss of price pressures supported the central regulator’s more dovish stance.
Copper futures fell because China, the biggest consumer of the metal, lacked a major stimulus. At China’s recent parliamentary meeting, the announcement of a 5 percent growth target by 2024 disappointed some investors who had hoped for broader stimulus.
The country’s manufacturing sector witnessed its fifth consecutive month of contraction in February, leading to calls for increased stimulus to stabilize growth as per the latest economic data.
MCX gold futures settled +0.59% to 64845.Silver settled -0.13% at 73374. Copper settled -0.30% to 726.15. Crude oil -0.70% at 6481. Natural gas -1.60% to 160
Economic data and events scheduled
Eurozone
At 12.30pm- German Trade Balance. Data is foreseen at 21.0B from previous 22.2B.
At 3.30pm- Retail Sales m/m. Data is foreseen at 0.1% from previous -1.1%.
Above data could have a volatile impact on the Euro.
UK
At 3.00pm- Construction PMI. Data is foreseen at 49.0 from previous 48.8.
Tentative – Annual Budget Release.
Above data could have a neutral impact on the Pound.
Canada
At 8.15pm-BOC Rate Statement and Overnight Rate (Forecast 5.0%, unchanged).
At 9.00pm- BOC Press Conference.
Above data could have a neutral impact on the dollar.
US
At 6.45pm- ADP Non-Farm Employment Change. Data is foreseen at 149k from previous 107k.
At 8.30pm-
Fed Chair Powell Testifies.
JOLTS Job Openings. Data is foreseen at 8.80M from previous 9.03M.
Final Wholesale Inventories m/m. Data is foreseen at 52.9 from previous 53.4.
At 9.00pm- Crude Oil Inventories. Previous data was at 4.2M.
At 10.30pm- FOMC Member Daly Speaks.
Above data could have a volatile impact on the dollar.
Commodity Samachar
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Also Read: Gold prices at lifetime highs, as outlook hits forecast levels , Tokyo CPI, BOJ Gov Ueda speaks & US services PMI in the spotlight?
Recommended Read: Forex News Letter : US ISM Service Ready To Take The Spotlight?
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