Today’s economic news offers some compelling insights.
The dollar index retreated nearly half percent against the major currencies on Wednesday after July U.S. job openings data.
U.S. job openings dropped to a 3-1/2-year low in July, suggesting the labor market was losing steam, but probably not enough for the Federal Reserve to consider a big interest rate cut this month.
Global Economic Indicators:
US JOLTS JOB – Job openings, a measure of labor demand, had fallen by 237,000 to 7.673 million on the last day of July, the lowest level since January 2021, the Labor Department’s Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey, or JOLTS report. Data for June was revised lower to show 7.910 million unfilled positions instead of the previously reported 8.184 million.
Bank of Canada policy: The Bank of Canada lowered its key policy rate by 25 basis points to 4.25% from 4.50%.
Commodity Update
Gold: Gold prices reversed their earlier decline, rising as a result of a weaker U.S. dollar and falling Treasury yields. The shift came after U.S. job openings data pointed to a potential large rate cut by the Federal Reserve at its upcoming policy meeting.
Crude Oil: Crude futures experienced a volatile trading session, with Brent crude falling by 1.42% to settle at $72.70 per barrel, and U.S. West Texas Intermediate (WTI) dropping 1.62% to close at $69.20. Traders remained cautious about future demand as conflicting signals from crude producers raised concerns over possible supply increases.
The prices fluctuated sharply during the session, with prices swinging $1 in either direction following reports that OPEC+ was considering postponing a planned output increase due to a potential rise in Libyan production.
Copper: Copper prices stabilized as industrial buyers stepped in after the metal hit a three-week low. However, gains were limited by ongoing concerns over weakening global economic growth, which could dampen demand for industrial metals.
Yesterday’s price action
MCX gold futures settled +0.12% to 71466.Silver settled +0.38% to 83565. Copper settled -0.25% to 783.40. Crude oil -1.08% at 5851. Natural gas -2.27% to 180.60.
Major Economic News, Data and Event scheduled today.
Australia
At 7.00am– Goods Trade Balance. Data is foreseen at 36.90 from the previous 36.70.
At 7.30am- RBA Gov Bullock Speaks.
Above data could have an volatile impact on the dollar.
Eurozone
At 11.30am– German Factory Orders m/m. Data is foreseen at -1.6% from previous 3.9%.
At 2.30pm- Retail Sales m/m. Data is foreseen at 0.1%from previous -0.3%.
Above data could have a volatile impact on the Euro.
UK
At 2.00pm- Construction PMI. Data is foreseen at 54.6 from previous 55.3
Above data could have a negative impact on the pound.
CANADA
At 6.00pm- Labor Productivity q/q. Data is foreseen at -0.1% from previous -0.3%.
Above mentioned economic news and data could have a mixed impact on the dollar.
US
At 5.45pm – ADP Non-Farm Employment Change. Data is foreseen at 143k from the previous 122k.
At 6.00pm-
Unemployment Claims. Data is foreseen at 231k from previous 231k.
Revised Nonfarm Productivity q/q.Data is foreseen at 2.4% from previous 2.3%.
Revised Unit Labor Costs q/q. Data is foreseen at 0.8% from previous 0.9%.
At 7.15pm- Final Services PMI. Data is foreseen at 55 from previous 55.2
At 7.30pm – ISM Services PMI. Data is foreseen at 51.2 from previous 51.4.
At 8.00pm- Natural Gas Storage.
At 8.30pm – Crude Oil Inventories
Above mentioned economic news and data could have a volatile impact on the dollar.
Happy trading!
Commodity Samachar Securities
We Decode the language of the market
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