Today’s economic news offers some compelling insights.
The dollar recovered nearly half percent against the major currencies, after a recent run of declines that pushed it to its weakest in more than a year, as traders awaited economic data that could set the tone for the Federal Reserve’s September policy meeting.
Sharp bouts of volatility hit the foreign exchange markets in early August as worries around a potential U.S. recession and hawkish signals from the Bank of Japan (BOJ) hammered the dollar and sent other major currencies soaring.
Gold prices fell on under pressure from a stronger dollar and uncertainty ahead of a key U.S. inflation report that could provide more clarity about the Federal Reserve’s September policy meeting.
Oil prices fell more than 1% on persistent concern over Chinese demand and elevated risks of a broader slowdown, though the decline was capped by potential supply losses from the Middle East and Libya.
U.S. crude inventories dropped by 846,000 barrels to 425.2 million barrels last week, data from the Energy Information Administration showed, less than analysts’ expectations in a Reuters poll for a draw of 2.3 million barrels. Refining activity rose during the week.
A month-long rally in metals paused on Wednesday as concerns over demand from top consumer China and a rebound in the U.S. dollar triggered selloffs from funds and producers.
Three-month aluminum on the London Metal Exchange CMAL3 fell 1.7 percent to $2,507.50 a tonne by during European trade. The top metal strategist also pointed to corruption in China’s major metal industries, from automakers to manufacturers and internet companies.
Yesterday’s price action
MCX gold futures settled -0.53% to 71743.Silver settled -1.96% to 83977. Copper settled -1.47% to 807.05. Crude oil -1.02% at 6288. Natural gas +12.74% to 178.80.
Major Economic Data and Event scheduled today. What economic news will affect the market today?
Japan
At 10.30am -Consumer Confidence. Data is foreseen at 36.90 from the previous 36.70.
Above data could have a mixed impact on the Yen.
Eurozone
Tentative- German Prelim CPI m/m. Data is foreseen at 0.0% from previous 0.3%.
At 12.30pm- Spanish Flash CPI y/y. Data is foreseen at 2.4% from previous 2.8%.
At 10.45pm- German Buba President Nagel Speaks.
Above data could have a volatile impact on the Euro.
CANADA
At 6.00pm- Current Account. Data is foreseen at -6.0B from previous -5.4B.
Above mentioned economic news and data could have a mixed impact on the dollar.
US
At 6.30pm
Prelim GDP q/q. Data is foreseen at 2.8% from the previous 2.8%.
Unemployment Claims. Data is foreseen at 232k from previous 232k.
Prelim GDP Price Index q/q.Data is foreseen at 2.3% from previous 2.3%.
Goods Trade Balance. Data is foreseen at -97.7B from previous -96.6B.
Prelim Wholesale Inventories m/m. Data is foreseen at 0.3% from previous 0.2%
At 7.30pm – Pending Home Sales m/m. Data is foreseen at 0.2% from previous 4.8%.
At 8.00pm- Natural Gas Storage. Data is foreseen at 33B from previous 35B.
Above mentioned economic news and data could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
Also Read: Nifty’s Winning Streak Continues : Nifty Hits Record High, Australia’s Inflation: Latest Economic data and Insights
Recommended Read: MCX Commodities Uncovered: The Must-Knows and Essential Insights [2024]
Want help on your Trade?
Chat with our RM