The economic news for today looks quite interesting.
The dollar strengthened despite a surprise drop in the US producer price index (PPI) in May, suggesting that price pressures are easing. On Wednesday, the US consumer price index (CPI) for May was also softer than expected.
The euro was also under pressure as economic news showed an unexpected drop in eurozone industrial production in April. In addition, French political uncertainty continues to weigh on the euro after French President Macron called early parliamentary elections on Sunday.
Eurozone Apr industrial production unexpectedly fell -0.1% m/m versus expectations of a +0.2% m/m increase.
US weekly initial unemployment claims unexpectedly rose +13,000 to a 10-month high of 242,000, showing a weaker labor market than expectations of a decline to 225,000.
The US May PPI final demand unexpectedly eased to +2.2% y/y from +2.3% y/y in April, weaker than expectations of an increase of +2.5% y/y. May PPI ex-food and energy unexpectedly eased to +2.3% y/y from +2.5% y/y in April, weaker than expectations of +2.5% y/y.
Precious metals retreated Thursday, with silver falling sharply to a 4-week low. Precious metals were under pressure from negative carryover from Wednesday when the FOMC signaled only 25 bp of rate cuts this year versus projections of 75 bp of rate cuts back in March.
Copper prices slipped on Thursday while the dollar steadied after the U.S. Federal Reserve pushed back a potential interest rate cut to the end of the year.
Crude oil had a mixed trade yesterday, as a stronger dollar undercutting energy prices. Crude prices are also weighed down by negative carryover from Wednesday after weekly EIA crude inventories unexpectedly increased. Losses in crude are limited after Russia vowed to cut back its crude production.
MCX gold futures settled -1.16% to 71138.Silver settled -2.72% to 87983.Copper settled -1.33% to 855.65. Crude oil -0.14% at 6568. Natural gas -1.94% to 247.90
Economic data and events scheduled today – What economic news will affect the market today?
Tentative
At 7.00am-
BOJ Policy Rate. Expect to keep rate unchanged at -0.10%.
Monetary Policy Statement
BOJ Press Conference.
At 10.00am-
Revised Industrial Production m/m. Data is foreseen at -0.1% from previous -0.1%.
Tertiary Industry Activity m/m. Data is foreseen at 0.4% from previous -2.4%.
Above mentioned data and economic news could have a volatile impact on the Yen.
Eurozone
At 11.15am. French Final CPI m/m. Data is foreseen at 0.0% from previous 0.0%
At 1.30pm-Italian Trade Balance. Data is foreseen at 4.25B from previous 4.34B.
At 2.30pm- Trade Balance. Data is foreseen at 17.0B from previous 17.3B.
At 11.00pm- ECB President Lagarde Speaks.
Above mentioned data and economic news could have a volatile impact on the Euro.
U.K.
At 2.00pm- Consumer Inflation Expectations. Previous data was at 3.0%.
Above data could have a mixed impact on the Pound.
Canada
At 6.00pm-
Manufacturing Sales m/m. Data is foreseen at 1.3% from previous -2.1%.
Wholesale Sales m/m. Data is foreseen at 2.6% from previous -1.1%.
Above data could have a positive impact on the dollar.
US
At 6.00pm-
Import Prices m/m. Data is foreseen at 0.0%, previous was at 0.9%
At 7.30pm
Prelim UoM Consumer Sentiment. Data is foreseen at 72.1 from previous 69.1.
Prelim UoM Inflation Expectations. Previous was at 3.3%.
Above data could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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