The Economic data for the day is in and it seems like there are a few secrets held by the US CPI and Sales numbers with regards to the future fed rates. Let’s dive in and find out all about that.
The dollar traded near a one-month low against the euro on Wednesday on lower Treasury yields as traders braced for a US inflation report later in the day that could dictate the path. of Federal Reserve policy.
The yen languished near a two-week low, as a still-gaping yield gap between local bonds and U.S. peers continued to encourage selling of the Japanese currency.
The US Bureau of Labor Statistics reported the producer price index rose by 0.5% in April from March, up from a revised rise of 0.2% in March.
Core PPI, which excludes volatile items like food and energy, rose 0.4%, up from 0.2% in March and above the 0.2% consensus estimate.
Fed Chair Jerome Powell gave a bullish assessment on Tuesday of where the U.S. economy stands, with an outlook for continued above-trend growth and confidence in falling inflation that, while eroded by recent data, remains largely intact.
Gold traded higher as the dollar and treasury yields weakened even after another measure showed US inflation continued to run hot last month.
Crude Oil prices settled lower, as signs that inflation remains stubbornly high put a damper on rate cut expectations just as focus shifts to fresh U.S. supply data.
Copper climbed to the highest in two years, as bullish long-term demand and tight supply heightened concerts of incoming shortages.
MCX gold futures settled +0.62% to 72297.Silver settled +0.63% to 85417. Copper settled +0.08% to 884.2. Crude oil -1.24% at 6512. Natural gas +0.56% to 197.70.
Economic data and events scheduled today
Japan
At 11.30am
Prelim Machine Tool Orders y/y. Previous -3.8%.
Above mentioned economic data could have a positive impact on the Yen.
Eurozone
At 11.30am- French Final CPI m/m. Data is foreseen at 0.5% from previous 0.5%.
At 2.30pm-
Flash Employment Change q/q. Data is foreseen at 0.3% from previous 0.3%.
Flash GDP q/q. Data is foreseen at 0.3% from previous 0.3%.
Industrial Production m/m. Data is foreseen at -0.3% from previous 0.8%.
Above mentioned economic data could have a neutral impact on the Euro.
Canada
At 5.45pm- Housing Starts. Data is foreseen at 232k from previous 242k.
At 6.00pm- Manufacturing Sales m/m. Data is foreseen at -1.4% from previous 0.7%.
Above data could have a negative impact on the dollar.
US
At 6.00pm-
Core CPI m/m. Data is foreseen at 0.3% from previous 0.4%.
Core Retail Sales m/m. Data is foreseen at 0.2% from previous 1.1%.
CPI m/m. Data is foreseen at 0.4% from previous 0.0%.
CPI y/y. Data is foreseen at 3.4% from previous 3.5%.
Empire State Manufacturing Index. Data is foreseen at -10.8 from previous -14.3.
Retail Sales m/m. Data is foreseen at 0.4% from previous 0.7%.
At 7.30pm- Business Inventories m/m. Data is foreseen at 0.0% from previous 0.4%.
At 8.00pm- Crude Oil Inventories. Previous was at -1.4M.
Above data could have a volatile impact on the dollar.
Also read-Forex Newsletter:UK Unemployment Rate Rises to 4.3% Amidst Stable Earnings Copper Price hits 2-year high, will it continue?
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