The Economic Data for the day is in.
The dollar weakened to a three-week low on Monday after data showed the US economy slowed on weaker-than-expected manufacturing and construction spending, suggesting the US Federal Reserve plans to start cutting interest rates. rates this in the year.
The dollar index was last down 0.41% at 104.199. The euro up 0.34% to $1.0883. Sterling up 0.31% to $1.2779.00.
The U.S. Institute for Supply Management (ISM) said its purchasing managers index (PMI) for manufacturing fell to 48.7 in May, from 49.2 in April, sliding as well from an 18-month high of 50.3 seen in March.
U.S. construction spending also slid unexpectedly for a second consecutive month in April, decreasing by 0.1% after a 0.2% decline in March, amid falls in non-residential activity.
Gold prices, rebounding slightly from the two-week low as growing expectations of looser monetary by major central banks lifted demand for non-yielding bullion. ISM data pointed to a faster contraction than expected for US manufacturing in May, while the price gauge slowed.
Crude oil plunged sharply, after OPEC+ on Sunday unexpectedly rolled out a plan to restore some crude production in Q4. Also, signs of weakness in the US economy are negative for energy demand and crude prices after the US ISM manufacturing and construction spending reports declined. Crude prices are falling despite today’s decline in the dollar index to a 2-week low.
Copper prices traded in a green after data from top consumer China showed stronger factory activity and U.S. inflation data reinforced hopes of interest rates cut by the Federal Reserve this year.
MCX gold futures settled +0.51% to 72203.Silver settled +0.51% to 92033.Copper settled +0.95% to 880.10. Crude oil -4.22% at 6181. Natural gas +4.65% to 225.00.
Economic data and events scheduled
Australia
At 7.00am-
Company Operating Profits q/q. Data is foreseen at -0.9% from previous 7.4%.
Current Account. Data is foreseen at 5.6B from previous 11.8B.
Above mentioned economic data could have a negative impact on the dollar.
Eurozone
At 12.15pm- French Gov Budget Balance. Previous -52.8B.
At 12.30pm- Spanish Unemployment Change. Data is foreseen at -55.4k from previous -60.5k.
At 1.25pm- German Unemployment Change. Data is foreseen at 7k from previous 10k.
Italian Prelim CPI m/m. Data is foreseen at 0.2% from previous 0.1%.
Above mentioned economic data could have a volatile impact on the Euro.
US
At 7.30pm-
JOLTS Job Openings. Data is foreseen at 8.37M from previous 8.49M.
Factory Orders m/m. Data is foreseen at 0.7% from previous 0.8%.
Tentative – RCM/TIPP Economic Optimism. Data is foreseen at 45.2 from previous 41.8.
Above mentioned economic data could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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