The Economic Outlook looks like it’s headed for a tie between the Eurozone and UK indicators. What’s ahead for the market?
The dollar rose to a three-month high on Tuesday after data showed US inflation accelerated more than expected in January, boosting expectations that the Federal Reserve will keep interest rates steady in March.
The greenback also topped 150 yen for the first time since November.
As per the most recent economic outlook, the data showed that the consumer price index (CPI) rose 0.3% in January from the previous month, more than the 0.2% expected by Reuters economists. On a year-over-year basis, it grew by 3.1% compared to the forecast growth of 2.9%.
Excluding the volatile food and energy components, the consumer price index rose 0.4% last month after rising 0.3% in December. The core consumer price index rose by 3.9% in January, matching December.
Base metals stayed neutral to slightly negative as continued macroeconomic headwinds in China, the world’s largest consumer, further weakened the outlook for base metals.
Deflation in the country unexpectedly rose to a 14-year high, while the official manufacturing PMI showed a fourth straight decline in January.
Gold fell sharply, touching its lowest intraday level this year, as stronger-than-expected US inflation raised the risk that the Federal Reserve interest rate plans change
Crude oil prices rose on Tuesday amid continued geopolitical tensions in the Middle East and Eastern Europe, but gains were limited as investors cut interest rate expectations from the US Federal Reserve.
According to the API, crude oil inventories rose by 8.52 million barrels in the week ended February. 9, the sources said on condition of anonymity. Gasoline stocks fell by 7.23 million barrels and distillate stocks by 4.02 million barrels.
OPEC stuck to its forecast of relatively strong growth in global oil demand in 2024 and 2025 and raised its economic growth forecasts for both years. The producer group and allies including Russia, OPEC+, will decide in March whether to continue cutting oil production.
MCX gold futures settled -0.92% to 61504. Silver settled -1.93% at 69639. Copper -0.08% to 707.65. Crude oil +1.87% at 6490. Natural gas -6.05% to 145.90
Economic data and events scheduled today – What’s the geopolitical economic outlook today?
China
Foreign Direct Investment ytd/y
Above data could have a mixed impact on the Yuan.
Eurozone
At 3.30pm-
Flash Employment Change q/q. Data is foreseen at 0.3% from previous at 0.2%.
Flash GDP q/q. Data is foreseen at 0.0% from previous 0.0%.
Industrial Production m/m. Data is foreseen at -0.2% from previous -0.3%.
Tentative – German 30-y Bond Auction.
At 8.30pm- German Buba President Nagel Speaks.
Above data could have a mixed impact on the Euro.
UK
At 12.30pm-
CPI y/y. Data is foreseen at 4.1% from previous 4.0%.
Core CPI y/y. Data is foreseen at 5.2% from previous 5.1%.
PPI Input m/m. Data is foreseen at 0.1% from previous -1.2%.
PPI Output m/m. Data is foreseen at -0.2% from previous -0.6%.
RPI y/y. Data is foreseen at 5.1% from previous 5.2%.
At 3.00pm – HPI y/y. Data is foreseen at -1.8% from previous -2.1%.
At 8.30pm- BOE Gov Bailey Speaks.
Above data could have a volatile impact on the Pound.
US
At 9.00pm- Crude Oil Inventories. Foreseen at 3.3M from previous 5.5M.
Above data could have a volatile impact on the dollar.
Commodity Samachar
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Also Read : US Inflation in Focus: Will the US Data Conquer Today’s Market? , Gold Outlook: Is US Inflation Propelling a 2-3% Surge in Gold?
Recommended Read : Forex News Letter : Will US CPI Data Be Instrumental In Shaping Fed’s Decisions?
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