The economic news for today looks quite interesting.
The dollar retreated from intraday highs and fell on Tuesday as government bond yields fell on a weaker-than-expected US retail sales report for May.
The dollar Tuesday initially moved higher based on comments from New York Fed President Williams, who said the US economy is “moving in the right direction.” Comments from other Fed presidents Tuesday were hawkish and supported the dollar as well after St. Louis Fed President Musalem, Boston Fed President Colins, Dallas Fed President Logan, and Richmond Fed President Barkin said the Fed needs more data before it can cut interest rates. Also, Tuesday’s stronger-than-expected report on US Apr manufacturing production was bullish for the dollar.
The dollar pared gains on the heels of the data and was only slighter higher on the session. The dollar index edged up 0.03% at 105.30, while the euro EURUSD rose just 0.01% at $1.0735.
Earlier in the day, the Reserve Bank of Australia kept rates at a 12-year high of 4.35%, as expected, but warned there were still reasons to guard against inflation risks. The Australian dollar AUDUSD strengthened 0.59% versus the greenback at $0.6651.
Retail sales rose 0.1% last month after a downwardly revised 0.2% drop in April, the U.S. Commerce Department said. The result was below expectations of economists polled by Reuters for a gain of 0.3%, and indicated that economic activity was slowing as higher interest rates affect consumer spending patterns.
Other data showed U.S. business inventories rebounded in April, increasing by 0.3% after slipping 0.1% in March.
U.S. markets will be closed on Wednesday for the Juneteenth holiday.
Gold prices found support after treasury yields fell and the dollar dropped off overnight highs as U.S. retail sales rose less than expected last month.
Copper prices rebounded from two-month lows as the dollar pared gains after slower growth in retail sales boosted the case for interest rate cuts by the U.S. Federal Reserve.
Crude jumped to a 7-week high on expectations that global oil supplies will remain tight in the medium term after Saudi Arabia said last week that it could reverse OPEC+ production changes to support crude prices and after Russia vowed to cut back its crude production.
MCX gold futures settled +0.40% to 71739.Silver settled +0.29% to 89080.Copper settled +0.22% to 851.55. Crude oil +1.74% at 6786. Natural gas +3.51% to 242.00.
Economic data and events scheduled today. What economic news will affect the market today?
Economic data and events scheduled today.
Japan
At 5.20am-
Monetary Policy Meeting Minutes.
Trade Balance. Data is foreseen at -0.64T from previous -0.56T.
Above data could have a volatile impact on the dollar.
Eurozone
At 1.30pm. Current Account. Data is foreseen at 35.2B from previous 35.8B.
Above data could have a volatile impact on the Euro.
U.K.
At 11.30am-
CPI y/y. Data is foreseen at 2.0% from previous 2.3%
Core CPI y/y. Data is foreseen at 3.5% from previous 3.9%
PPI Input m/m. Data is foreseen at -0.3% from previous 0.6%
PPI Output m/m. Data is foreseen at 0.1% from previous 0.2%
RPI y/y. Data is foreseen at 3.1% from previous 3.3%
At 2.00pm- HPI y/y. Data is foreseen at 2.0% from previous 1.8%.
 Above mentioned economic news and data could have a volatile impact on the pound.
US
At 7.30pm- NAHB Housing Market Index. Data is foreseen at 45.00, unchanged from the previous.
Above mentioned economic news and data could have a neutral impact on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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