The economic news for today looks quite interesting.
The dollar fell on Thursday after data showed a surprise drop in consumer prices in June, while a strong rise in the Japanese yen fueled speculation of possible currency intervention.
The Japanese yen strengthened sharply and the USDJPY pair fell to near one-month lows on speculation about possible government intervention in the currency market.
Strength in the yen also came as softer-than-expected consumer price index data battered the U.S. dollar and ramped up expectations for a September interest rate cut by the Federal Reserve.
The US Consumer Price Index (CPI) rose 3.0% on a yearly basis in June, compared to a rise of 3.3% in May. This reading came in below the market consensus of 3.1%, according to the US Bureau of Labor Statistics (BLS) on Thursday. On a monthly basis, the CPI declined 0.1% MoM in June, the lowest level in more than three years.
The annual core CPI, which excludes volatile food and energy prices, climbed 3.3% YoY in June, below the forecast and May’s increase of 3.4%. The figure was up 0.1% on a monthly basis.
Gold price jumped to its highest level since May 22 in reaction to another tame US inflation report, which boosted expectations that the Federal Reserve will cut interest rates in September.
Crude Oil prices gained over half percent amid optimism over U.S. interest rate cuts and improved summer demand, but were still set for weekly losses on some profit-taking.
Speculation over an Israel-Hamas ceasefire also saw traders attach a lower risk premium to oil this week, although it appeared unlikely that an agreement was imminent. Prices also logged some losses after Hurricane Beryl was seen causing limited disruptions in production along the Gulf of Mexico.
MCX gold futures settled +0.88% to 73311.Silver settled +1.46% to 94190. Copper settled -1.46% to 856. Crude oil +0.51% at 6893. Natural gas -2.31% to 190.40.
Economic data and events scheduled today. What economic news will affect the market today?
China
Tentative –
Trade Balance. Data is foreseen at 590B. Previous was at 586B.
USD-Denominated Trade Balance. Data is foreseen at 85.1B from previous 82.6B.
Above data could have a positive impact on the Yuan.
Eurozone
At 11.30am – German WPI m/m. Data is foreseen at 0.2% from previous 0.1%.
At 12.15am- French Final CPI m/m. Data is foreseen at 0.1% from previous 0.1%.
Above data could have a volatile impact on the Euro.
U.K.
Tentative- BOE Quarterly Bulletin.
 Above mentioned economic news and data could have a volatile impact on the Pound.
US
At 6.00pm-
Core PPI m/m. Data is foreseen at 0.2%. Previous was at 0.0%.
PPI m/m. Data is foreseen at 0.1% from previous -0.2%.
At 7.30am-
Prelim UoM Consumer Sentiment. Data is foreseen at 68.5 from previous 68.2.
Prelim UoM Inflation Expectations. Previous was at 3.0%.
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 Takes a Rollercoaster Ride: Early Dip Eased by Late Buying, Forex Newsletter: Inflation Cools in June, Raising Hopes for Fed Rate Cut Spotlight!
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