Today’s economic news offers some compelling insights.
The dollar retreated from the day’s high 101.76 and settled almost flat against major currencies on Tuesday, ahead of key inflation data and a highly anticipated U.S. presidential debate, even though neither outcome is likely to affect overall monetary policy.
Economic Data and Events Released Yesterday
- Trade balance rose to a surplus of $91.02 billion in August, government data showed on Tuesday. The reading was higher than expectations for a surplus of $82.10 billion and also improved from the $84.65 billion surplus seen in July.
- Exports grew 8.7% year-on-year, higher than expectations for growth of 6.5% and accelerating from the 7% rise seen in July.
- UK’s Office for National Statistics (ONS) revealed that the ILO Unemployment Rate slightly decreased to 4.1% for the three months ending in July, down from 4.2%, aligning with market expectations
- Employment figures showed significant improvement, with an increase of 265,000 jobs during the same period, compared to the previous rise of 97,000. Meanwhile, annual wage growth, as indicated by the Average Earnings Excluding Bonus, slowed to 5.1% from 5.4%.
Commodity Update
Gold: Gold prices held firm Tuesday as market participants positioned themselves ahead of U.S. inflation data for further clues on the depth of interest rate cuts by the Federal Reserve next week.
Crude Oil: Global oil benchmark Brent crude futures settled at their lowest since December 2021 on Tuesday, after OPEC+ revised down its demand forecast for this year and 2025, offsetting supply concerns from Tropical Storm Francine. Brent crude futures LCOc1 settled down $2.65, or 3.69%, at $69.19 a barrel.
Copper: Copper prices retreated on Tuesday on fund selling amid persistent worries about the health of the Chinese economy and metals demand after fresh data.
Yesterday’s price action
MCX gold futures settled +0.40% to 71913.Silver settled 0.04% to 83681. Copper settled -0.75% to 784.95. Crude oil -4.21% at 5533. Natural gas +3.45% to 188.70.
Major Economic News, Data and Event scheduled today
Eurozone
Tentative – German 10-y Bond Auction.
UK
At 11.30am-
GDP m/m. Data is foreseen at 0.2% from previous 0.0%.
Construction Output m/m. Data is foreseen at 0.4% from previous 0.5%.
Goods Trade Balance. Data is foreseen at -18.0B from previous -18.9B.
Index of Services 3m/3m. Data is foreseen at 0.6% from previous 0.8%.
Industrial Production m/m. Data is foreseen at 0.3% from previous 0.8%.
Manufacturing Production m/m. Data is foreseen at 0.2% from previous 1.1%
Above mentioned economic news and data could have a negative impact on the pound.
US
At 6.00pm
Core CPI m/m. Data is foreseen at 0.2% from previous 0.0%.
CPI m/m. Data is foreseen at 0.4% from previous 0.5%.
CPI y/y. Data is foreseen at -18.0B from previous -18.9B.
At 8.00pm- Crude Oil Inventories.
Above mentioned economic news and data could have a volatile impact on the dollar.
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