Today’s economic news offers some compelling insights.
The dollar edged down on Monday but remained close to its highest level in almost two weeks at 101.66 against a basket of currencies, as investors’ focus shifted to a U.S. jobs report due at the end of this week.
The U.S. payrolls data, due on Friday, will be crucial after Federal Reserve Chair Jerome Powell shifted from a focus on fighting inflation to a readiness to guard against job losses.
Global Economic Indicators:
Euro zone Manufacturing PMI: Euro zone manufacturing PMI, compiled by S&P Global, stood at 45.8 in August, just ahead of a 45.6 preliminary estimate but firmly below the 50-mark separating growth from contraction.
Italy’s economy: Italy’s economy grew by 0.2% in the second quarter from the previous three months, national statistics bureau ISTAT said on Monday, confirming a preliminary estimate.
On a year-on-year basis, second quarter gross domestic product (GDP) was confirmed at 0.9%.
Turkey’s economy: Turkey’s economy grew less than expected in the second quarter, expanding an annual 2.5% in the face of a year-long monetary tightening campaign.
UK Manufacturing PMI: UK Manufacturing Purchasing Managers’ Index rose to 52.5 from 52.1 in July, its highest reading since June 2022 and unchanged from a preliminary flash reading for August
Commodity Update
Gold: Gold fell below 71600 marks on Monday, extending its pullback from last week’s record highs due to pressure from a stronger dollar and rising bond yields.
WTI Crude Oil: Oil prices struggled to gain yesterday, on persistent concerns over China’s demand outlook and growing expectations that OPEC and its allies will gradually increase supply starting from October.
Copper – Copper futures slid to around in early September amid rising inventories and soft Chinese demand. Copper inventories in LME warehouses surged recently by 8,700 tons amid subdued market conditions.
Yesterday’s price action
MCX gold futures settled -0.1% to 71601.Silver settled -0.77% to 84554. Copper settled -0.57% to 801.40. Crude oil +0.31% at 6222. Natural gas +3.13% to 184.60.
Major Economic News, Data and Event scheduled today And possible impact on the currency
Japan
At 5.20am –
Monetary Base y/y. Data is foreseen at 0.6% from the previous 1.0%.
Above data could have a mixed impact on the Yen.
Australia
At 7.00am- Current Account. Data is foreseen at -4.5B from previous -4.9B.
Above data could have a neutral impact on the dollar
Swiss
At 12.00pm- CPI m/m. Data is foreseen at 0.1% from previous -0.2%.
Above data could have an positive impact on the dollar.
Eurozone
Tentative – German Retail Sales m/m. Data is foreseen at 0.1% from previous -1.2%.
At 12.15pm – French Gov Budget Balance. Previous -103.5B.
At 12.30pm-Spanish Unemployment Change. Data is foreseen at 34.3K from previous -10.8K.
At 10.15pm- German Buba President Nagel Speaks
Above data could have a volatile impact on the Euro.
Canada
At 7.00am- Manufacturing PMI. Previous at 47.8.
Above mentioned economic news and data could have a neutral impact on the dollar.
US
At 7.15pm- Final Manufacturing PMI. Data is foreseen at 48.1 from the previous 48.00.
At 7.30pm-
ISM Manufacturing PMI. Data is foreseen at 47.5 from the previous 46.8.
ISM Manufacturing Prices. Data is foreseen at 52.1 from the previous 52.9.
Construction Spending m/m.Data is foreseen at 0.1% from previous -0.3%.
Tentative – RCM/TIPP Economic Optimism. Data is foreseen at 46.2 from previous 44.5.
Above mentioned economic news and data could have a volatile impact on the dollar.
Happy trading!
Commodity Samachar Securities
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