Economic Data-The U.S. dollar slipped near to 101 marks, struggling to find a foothold after weak economic data raised expectations of an outsized interest rate cut by the Federal Reserve later this month.
Economic Data and Events Released Yesterday
European data released earlier in the day was mixed, as German factory Orders rose by 2.9% in July, better than the -1.5% anticipated. On a yearly basis, orders increased by 3.7%, following the -11.2% posted in June. However, the Eurozone reported that Retail Sales were up by just 0.1% MoM in July, and that also fell by 0.1% compared to a year earlier.
- US August ISM Purchasing Managers Index (PMI) after Wall Street’s opening. The index is expected at 51.1, below the 51.4 posted in July.
- Figures of the ADP National Employment Change showed that private companies hired fewer people than expected, adding just 99K in August, well beneath the 145K expected and downwardly revised July figures.
- Initial Jobless Claims for the week ending August 31, hit 227K, below the 230K projected and the previous 232K.
- ISM Services Purchasing Managers Index (PMI), a measure of business activity, improved. The index hit 51.5 vs 51.4 in July and above the 51.1 projected by the consensus.
Commodity Update
Gold: Gold futures up nearly half percent, as the market prices in expected September U.S. interest rate cuts. Incoming data, especially those focusing on growth and employment ahead of this month’s meeting.
Crude Oil: Oil prices edged up about one percent on a bigger-than-expected withdrawal from U.S. inventories and a delay to output increases by OPEC+ producers after futures fell to multi-month lows in the prior session on Chinese demand concerns.
The U.S. Energy Information Administration said energy firms pulled 6.9 million barrels of crude out of storage during the week ended Aug. 30.
That was much bigger than the 1-million-barrel draw analysts forecast in a Reuters poll, but was in line with the 7.4-million-barrel draw reported by the American Petroleum Institute industry group on Wednesday.
Copper: Copper edges higher amid a softer dollar. Sentiment remains volatile and markets are more sensitive toward macro data as expectations for a U.S. recession are rising as investors doubt the resiliency of the economy.
Yesterday’s price action
MCX gold futures settled +0.63% to 71917.Silver settled +1.66% to 84956. Copper settled +1.12% to 792.20. Crude oil -0.70% at 5810. Natural gas +5.70% to 190.90.
Major Economic Data and Event scheduled today
Eurozone
At 11.30am—
German Industrial Production m/m. Data is foreseen at -0.4% from previous 1.4%.
German Trade Balance. Data is foreseen at -0.4% from previous 1.4%.
At 12.15pm-
French Industrial Production m/m. Data is foreseen at -0.3% from previous 0.8%.
French Trade Balance. Data is foreseen at -6.5B from previous -6.1B.
At 1.30pm-
Italian Retail Sales m/m. Data is foreseen at 0.1%from previous -0.2%
At 2.30pm-
Final Employment Change q/q. Data is foreseen at 0.2% from previous 0.2%.
Revised GDP q/q. Data is foreseen at 0.3%from previous 0.3%.
Above data could have a volatile impact on the Euro.
UK
At 11.30am- Halifax HPI m/m. Data is foreseen at 0.2% from previous 0.8%.
Above data could have a negative impact on the pound.
Canada
At 6.00pm-
Employment Change. Data is foreseen at 25.6k from previous -2.8k.
Unemployment Rate. Data is foreseen at 6.5% from previous 6.4%.
Above data could have a mixed impact on the dollar.
US
At 6.00pm-
Non-Farm Employment Change. Data is foreseen at 0.3% from previous 0.2%.
Unemployment Rate Data is foreseen at 4.2% from previous 4.3%.
At 6.15pm- FOMC Member Williams Speaks.
At 8.30pm- FOMC Member Waller Speaks
Above data could have a volatile impact on the dollar.
Happy trading!
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