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Economic News: US, Japan, Eurozone Inflation Data, Markets on Edge


Economic News: US, Japan, Eurozone Inflation Data, Markets on Edge

The economic news for today looks quite interesting.

The US dollar rose against most currencies on Thursday, weighed down by weaker data from the world’s largest economy, supporting expectations that the Federal Reserve will begin cutting interest rates this – per year

The yen fell to a 38-year low against the dollar after the US figures, although traders remained wary of possible Japanese intervention to support the currency.

Yesterday, US economic news was mixed for energy demand and crude prices. On the positive side, Q1 GDP was revised upward to +1.4% (q/q annualized) from +1.3%.

Conversely, U.S. reports showed that jobless claims for state unemployment benefits dropped to 233,000 for the week ended June 22. However, the number of people receiving benefits after an initial week of aid increased 18,000 to 1.839 million during the week ending June 15.

Also, May capital goods new orders nondefense ex-aircraft and parts, a proxy for capital spending, unexpectedly fell -0.6% m/m versus expectations of a +0.1% m/m increase. In addition, May pending home sales unexpectedly fell -2.1% m/m versus expectations of a +0.5% m/m increase.

Gold gained nearly one percent, and witnessed an smart recovery from the over two-week low touched in the previous session, as the dollar softened and the spotlight shifted to key U.S. inflation data for clues on the Federal Reserve’s policy path.

Copper prices hit their weakest in more than two months on as more bullish positions were scrapped, inventories kept rising and demand remained lackluster in top metals consumer China.

Crude had a neutral trade and settled almost flat, however prices maintained to trade nearly 8-week high and gasoline posting a 5-week high. Dollar gave some gains also supportive of energy prices. Also, the outlook for global crude supplies to remain tight in the medium term is bullish for prices.

MCX gold futures settled +0.68% to 71572.Silver settled +0.10% to 87048.Copper settled -0.78% to 834.25. Crude oil -0.01% at 6801. Natural gas -1.90% to 234.25.

Economic data and events scheduled today. What economic news will affect the market today?

Japan

At 5.00am-

Tokyo Core CPI y/y. Data is foreseen at 2.0% from previous 1.9%.

Unemployment Rate. Data is foreseen at 2.6% from previous 2.6%.

At 5.20am – Prelim Industrial Production m/m. Data is foreseen at 2.0% from previous -0.9%.

At 10.30am- Housing Starts y/y. Data is foreseen at -6.1% from previous 13.9%.

All above data could have a volatile impact on the Yen.

Eurozone

At 11.30am – German Import Prices m/m. Data is foreseen at 0.2% from previous 0.7%.

At 12.15pm-

French Prelim CPI m/m. Data is foreseen at 0.1% from previous 0.0%.

French Consumer Spending m/m. Data is foreseen at 0.2% from previous -0.8%.

At 12.30pm- Spanish Flash CPI y/y. Data is foreseen at 3.4% from previous 3.6%.

At 1.25pm- German Unemployment Change. Data is foreseen at 14k from previous 25k.

At 2.30pm- Italian Prelim CPI m/m. Data is foreseen at 0.2% from previous 0.2%.

Above mentioned economic news and data could have a volatile impact on the Euro.

 U.K.

At 11.30am-

Current Account. Data is foreseen at -17.7B from previous -21.2B.

Final GDP q/q. Data is foreseen at 0.6% from previous 0.6%.

Revised Business Investment q/q. Data is foreseen at 0.9% from previous 0.9%.

 Above data could have a neutral impact on the pound.

US

At 6.00pm-

Core PCE Price Index m/m. Data is foreseen at 0.1% from previous 0.2%.

Personal Income m/m. Data is foreseen at 0.4% from previous 0.3%.

Personal Spending m/m. Data is foreseen at 0.3% from previous 0.2%.

At 7.15pm- Chicago PMI. Data is foreseen at 39.7 from previous 35.4.

At 7.30pm-

Revised UoM Consumer Sentiment. Data is foreseen at 65.9 from previous 65.6.

At 9.30pm- FOMC Member Bowman Speaks.

Above mentioned economic news and data could have a volatile on the dollar.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

Also Read: Nifty Bulls Unstoppable! Market Paints Green for Four Days in a Row, Forex Newsletter: How Resilient is Gold’s Downside?

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