Today’s economic news offers some compelling insights.
The Dollar Index’s recent jump above 101.35, reaching a one-week high against the major counterparts, reflects the market’s reaction to strong US economic indicators.
Global Economic Indicators:
Jobless Claims: The slight drop in weekly initial unemployment claims to 231,000, below expectations, signals a stronger labor market, supporting the Dollar.
Q2 GDP Revision: The upward revision to 3.0% annualized growth, driven by stronger-than-expected consumer spending, is a hawkish signal for Fed policy, suggesting the possibility of further rate hikes.
Core PCE Price Index: The slight downward revision to 2.8% from 2.9% could indicate that inflation pressures are moderating, but the strong GDP data may still keep the Fed on a tightening path.
Pending Home Sales: The unexpected decline of -5.5% m/m in July signals some softness in the housing market, though this may be overshadowed by the stronger overall economic data.
Commodity Update
Gold: Prices regained some ground as expectations of potential rate cuts from major central banks increase, reducing the opportunity cost of holding gold.
WTI Crude Oil: The over 2% rise in WTI crude prices is largely due to strong US economic data and supply disruptions in Libya, boosting investor confidence in demand resilience.
Meanwhile, Libya halted operations at five key export terminals, slashing its oil output by more than half and risking a significant reduction in global supply.
Copper – Base metal prices are mixed in yesterday trading session. Copper price struggling to gain amid a wider metal’s selloff on a stronger dollar, while aluminum dropped following a rise in Chinese inventories.
Yesterday’s price action
MCX gold futures settled +0.62% to 72188.Silver settled +1.07 to 84872. Copper settled +0.06% to 807.50. Crude oil +1.18% at 6362. Natural gas +0.50% to 179.70.
Major Economic Data and Event scheduled today. What economic news will affect the market today?
Japan
At 5.00am –
Tokyo Core CPI y/y. Data is foreseen at 2.2% from the previous 2.2%.
Unemployment Rate. Data is foreseen at 2.5% from the previous 2.5%.
At 5.20am-
Prelim Industrial Production m/m. Data is foreseen at 3.6% from previous -4.2%.
Retail Sales y/y. Data is foreseen at 2.8% from the previous 3.7%.
At 10.30am-
Housing Starts y/y. Data is foreseen at -1.1% from previous -6.7%.
Above data could have a mixed impact on the Yen.
Australia
At 7.00am-
Retail Sales m/m. Data is foreseen at -1.1% from previous -6.7%.
Private Sector Credit m/m. Data is foreseen at 0.5% from previous 0.6%.
Above data could have a mixed impact on the dollar.
Eurozone
At 11.00am- French Final Private Payrolls q/q. Data is foreseen at 0.0% from previous 0.0%.
At 11.30am-
German Import Prices m/m. Data is foreseen at 0.1% from previous 0.4%.
German Retail Sales m/m. Data is foreseen at 0.1% from previous -1.2%.
At 12.15pm-
French Consumer Spending m/m. Data is foreseen at 0.4% from previous -0.5%.
French Prelim CPI m/m. Data is foreseen at 0.5% from previous 0.2%.
French Prelim GDP q/q. Data is foreseen at 0.1% from previous -1.2%.
At 1.25pm-
German Unemployment Change. Data is foreseen at 17k from previous 18k.
Italian Monthly Unemployment Rate. Data is foreseen at 7% from previous 7%.
At 2.30pm-
CPI Flash Estimate y/y. Data is foreseen at 2.2% from previous 2.6%.
Core CPI Flash Estimate y/y. Data is foreseen at 2.8% from previous 2.9%.
Italian Prelim CPI m/m. Data is foreseen at 0.3% from previous 0.4%.
Unemployment Rate. Data is foreseen at 6.5% from previous 6.5%.
Above mentioned economic news and data could have a volatile impact on the Euro.
UK
At 11.30am- Nationwide HPI m/m. Data is foreseen at 0.2% from previous 0.3%.
At 2.00pm
M4 Money Supply m/m. Data is foreseen at 0.1% from previous 0.4%.
Mortgage Approvals. Data is foreseen at 61K from previous 60K.
Net Lending to Individuals m/m. Data is foreseen at 3.4Bfrom previous 3.8B.
Above mentioned economic news and data could have a volatile impact on the Pound.
CANADA
At 6.00pm- GDP m/m. Data is foreseen at 0.1% from previous 0.2%.
Above data could have a mixed impact on the dollar.
US
At 6.30pm
Core PCE Price Index m/m. Data is foreseen at 0.2%from the previous 0.2%.
Personal Income m/m. Data is foreseen at 0.2%from the previous 0.2%.
Personal Spending m/m.Data is foreseen at 0.5% from previous 0.3%.
At 7.15pm-
Chicago PMI. Data is foreseen at 45 from previous 45.3
At 7.30pm- Revised UoM Consumer Sentiment. Data is foreseen at 68 from previous 67.8.
Above data could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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