Top Economic News You Can’t Afford to Miss Today
FX Update
The dollar sparked near its two-year high on Thursday after the Federal Reserve cut interest rates and signaled a much slower monetary policy easing trajectory in 2025, while the yen weakened against the greenback after the Bank of Japan held rates steady.
The dollar edged higher from losses early in the session after a stronger-than-expected reading on U.S. third quarter GDP showed the economy grew at a 3.3% annual rate.
Crude Oil:
Oil prices fell after central bankers in the U.S. and Europe signaled caution over further easing of monetary policy, fanning concerns that weak economic activity could dent demand for oil next year. U.S. West Texas Intermediate crude futures for January delivery fell 67 cents, or 1%, to $69.91 per barrel and expired on settlement. The more active WTI February contract CLc2 fell 64 cents to settle at $69.38 per barrel.
Gold:
Gold prices were poised for a weekly fall after the Federal Reserve’s verdict on its monetary policy-easing cycle noted a slowdown in cuts, while market focus shifted to the U.S. Personal Consumption Expenditure data due later in the day. Investors now await the core PCE data, the Fed’s preferred inflation measure, for further clues on the U.S. economic outlook.
Copper
Copper prices fell to a five-week low as the dollar jumped to a near two-year high after the U.S. Federal Reserve signaled rates would be cut at a slower pace next year. Also weighing on industrial metals was the prospect of U.S. President-elect Donald Trump imposing tariffs on imports, which could trigger a trade war and hit economic growth and demand around the world.
MCX Closing Update
Gold 75,651 (-1.31%), Silver 87,187 (-3.53%), Crude oil 5,933 (-1.40%), Copper 796.75(-1.45%), Natural Gas 299.20 (4.54%).
Major Economic Data and Event Update
· Japan core consumer price index (CPI), which includes oil products but excludes fresh food prices, rose 2.7% in November from a year earlier, government data showed, roughly in line with a median market forecast for a 2.6% gain.
· Bank of Japan’s decision to maintain interest rates at 0.25% on Thursday, highlights broadening inflationary pressure that could prod the bank to raise borrowing costs further.
· US actual GDP growth rate was reported at 3.1%. This figure exceeded the anticipated growth rate, which had been forecasted at 2.8%. The higher-than-expected GDP growth indicates a stronger and more robust economy than initially predicted.
· United States has reported a decrease in Initial Jobless Claims, a key indicator of the health of the labor market. The actual number of initial jobless claims came in at 220,000, a figure lower than the forecasted 229,000.
· The Bank of England kept its main interest rate unchanged at 4.75% but policymakers became more divided about whether rate cuts were needed to tackle a slowing economy.
· Three of the BoE’s nine-person Monetary Policy Committee – Deputy Governor Dave Ramsden and external members Swati Dhingra and Alan Taylor – voted for a quarter-point rate cut to 4.5%.
Economic News, Data and Event scheduled today
Japan
At 5.00am. National Core CPI y/y. Data is foreseen at 2.6% from previous 2.3%.
Above data could have an volatile impact on the Yen.
China
At 6.20am-
1-y Loan Prime Rate. Forecast is 3.10% from previous 3.10%.
5-y Loan Prime Rate. Forecast 3.60% from previous 3.60%.
Above decision could have an neutral impact on the Yuan.
Eurozone
At 12.30pm- German PPI m/m. Data is foreseen at 0.3% from previous 0.2%.
At 8.30pm- Consumer Confidence. Data is foreseen at -14 from previous -14.00.
Above mentioned economic news and data could have a volatile impact on EURINR.
UK
At 12.30pm
Retail Sales m/m. Data is foreseen at 0.5% from previous -0.7%.
Public Sector Net Borrowing. Data is foreseen at 15.5B from previous 17.4B.
At 4.30pm- CBI Realized Sales. Data is foreseen at -9 from previous -18.
Above mentioned economic news and data could have a volatile impact on the pound.
Canada
At 7.00pm-
Core Retail Sales m/m. Data is foreseen at 0.2% from previous 0.9%.
Retail Sales m/m. Data is foreseen at 0.7% from previous 0.4%.
Above mentioned economic news and data could have a mixed impact on the Canadian Dollar.
US
At 7.00pm-
Core PCE Price Index m/m. Data is foreseen at 0.2% from previous 0.3%.
Personal Income m/m. Data is foreseen at 0.4% from previous 0.6%.
Personal Spending m/m. Data is foreseen at 0.5% from previous 0.4%
At 8.30pm-
Revised UoM Consumer Sentiment. Data is foreseen at 74.1 from previous 74.00.
Revised UoM Inflation Expectations. Previous 2.9%.Above data could have a volatile impact on the dollar
Until then, Happy Trading!
Commodity Samachar Securities
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