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Economic Data: US Unemployment Claims, EU Economic forecast in focus today


Economic Data: US Unemployment Claims, EU Economic forecast in focus today

The Economic data for the day is as follows.

The dollar dropped to multi-month lows on Thursday after U.S. core inflation hit its slowest in three years, pulling forward expectations for rate cuts in the world’s biggest economy and drawing bets that the U.S. currency may have peaked.

Monthly inflation slowed to 0.3%, slightly below the expected 0.4%, while on a 12-months basis headline inflation eased to 3.4% and core inflation to 3.6%, aligning with forecasts.

Additionally, retail sales were flat for the month, contrary to market expectations of a 0.4% increase, signaling some softening in consumer demand.

Gold climbed to and record high, buoyed by a weaker dollar and lower Treasury yields, after latest US CPI data indicated a slowdown, strengthening expectations of an interest rate cut by the Federal Reserve.

Crude oil recovered from the day’s low, as a softer-than-expected U.S. consumer inflation reading brought down the dollar and ramped up hopes of interest rate cuts.

A bigger-than-expected draw in U.S. inventories also fueled bets on tighter global supplies in the coming months, while markets waited to see whether an accident in Galveston, Texas, had any bearing on oil supplies.

Official data on Wednesday showed that U.S. oil inventories shrank a bigger-than-expected 2.5 million barrels in the week to May 10, with gasoline and distillate stockpiles also seeing unexpected draws.

The data pushed up hopes that demand was improving in the world’s biggest fuel consumer, especially as the travel-heavy summer season approaches.

Copper rises in early Asian session, paring some gains after hitting a record high overnight. The rally earlier this year, triggered by mine closures, has been boosted by rising competition from end users for critical minerals, and the U.S. tariffs on Chinese imports.

MCX gold futures settled +1.11% to 73102.Silver settled +1.70% to 86865. Copper settled +0.88% to 891.95. Crude oil +0.60% at 6551. Natural gas +0.61% to 198.90.

Economic data and events scheduled today

Japan

At 10.00am -Revised Industrial Production m/m. Data is foreseen at 3.4% from previous 3.8%.

Above mentioned economic data could have a negative impact on the Yen.

Eurozone

At 1.30pm- ECB Financial Stability Review.

At 2.30am- Italian Trade Balance. Data is foreseen at 4.77B from previous 6.03B.

Tentative – EU Economic Forecasts.

At 5.00pm- German Buba President Nagel Speaks

The Above mentioned economic data could have a volatile impact on the Euro.

UK

At 4.30pm- MPC Member Greene Speaks.

Above mentioned economic data could have a neutral impact on the dollar.

US

At 6.00pm-

Unemployment Claims. Data is foreseen at 0.3% from previous 0.4%.

Building Permits. Data is foreseen at 0.2% from previous 1.1%.

Philly Fed Manufacturing Index. Data is foreseen at 0.4% from previous 0.0%.

Housing Starts. Data is foreseen at 3.4% from previous 3.5%.

Import Prices m/m. Data is foreseen at -10.8 from previous -14.3.

At 7.45pm-

Industrial Production m/m. Data is foreseen at 0.1% from previous 0.4%.

Capacity Utilization Rate. Data is foreseen at 78.4% from previous 78.4%.

At 7.30pm- FOMC Member Barr Speaks.

At 8.00pm- Natural Gas Storage. Previous was at 79.B. Forecast is 76B.

At 9.30pm- FOMC Member Mester Speaks.

Above data could have a volatile impact on the dollar.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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