The Economic Outlook for the day is out and it seems like the US Core PPI data is set to take the spotlight. Dollar retreated for the second day on Thursday. The currency fell sharply after mixed data showed the US economy remained on solid footing, but the Federal Reserve is unlikely to prevent the Fed from starting to cut interest rates before June.
US initial jobless claims fell by 8K to a seasonally adjusted 212K in the week ended February 10. This is further evidence that the US labour market remains tight.
Other data showed that US industrial production fell -0.1% in January, weaker than expected. This is the lowest since October.
However, the US Empire State Manufacturing Index improved to -2.4 in February, rising to 41.3 from -29.2 in January to -43.7, the lowest reading since May 2020.
As per the economic outlook, on the other side, the Philadelphia Fed manufacturing index rose 15.8 to 5.2 in February, well above forecast, after rising 2.2 ticks to -10.6 in January. February’s print was the highest since August’s 7.7.
Gold prices rose on Thursday after weaker US economic data weighed on the US dollar and Treasury, while the market focus shifted to comments from Federal Reserve officials for clues on the timing of rate hikes.
Copper prices rose on Thursday, because the US dollar was suppressed after the country January retail sales were lower than expected.
Crude oil prices rebounded from earlier losses on Thursday amid a weak dollar, but a report from the International Energy Agency (IEA) said demand growth would slow this year and a larger-than-expected jump in US crude inventories capped gains.
MCX gold futures settled +0.23% to 61622. Silver settled +1.38% at 71121. Copper settled +1.25% to 714.75. Crude oil +1.34% at 6483. Natural gas -0.21% to 141.0
Economic data and events scheduled – Will US Core PPI be in Focus In Today’s Economic Outlook:
Japan
At 10.00am –
Tertiary Industry Activity m/m. Data is foreseen at 0.2% from previous -0.7%.
Above data could have a volatile impact on the Yen.
Eurozone
At 12.30pm- German WPI m/m. Data is foreseen at -0.4% from previous at -0.7%.
At 1.30pm- French Final CPI m/m. Data is foreseen at -0.2% from previous -0.2%.
Above data could have a mixed impact on the Euro.
UK
At 12.30pm- Retail Sales m/m. Data is foreseen at 1.5% from previous -3.2%.
Above data could have a volatile impact on the Pound.
Canada
At 7.00pm-
Foreign Securities Purchases. Data is foreseen at -6.45B from previous 11.43B.
Wholesale Sales m/m. Data is foreseen at 0.7% from previous 0.9%.
Above data could have a positive impact on the Canadian dollar.
US
At 7.00pm-
Core PPI m/m. Data is foreseen at 0.1% from previous 0.0%.
PPI m/m. Data is foreseen at 0.1% from previous -0.1%.
Building Permits. Data is foreseen at 1.51M from previous 1.49M.
Housing Starts. Data is foreseen at 1.45M from previous 1.46M.
At 7.40pm- FOMC Member Barr Speaks.
At 8.30pm-
Prelim UoM Consumer Sentiment. Data is foreseen at 80 from previous 79.00.
Prelim UoM Inflation Expectations. Previous was at 2.9%.
At 10.40pm- FOMC Member Daly Speaks.
Above data could have a volatile impact on the dollar.
Commodity Samachar
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Also Read : Economic Outlook: Will the US Data Cluster Chart a New Course for the Market? , Crude Oil: With falling prices, will concerns about demand support it?
Recommended Read : Forex News Letter: Will US Data Reign Supreme And Take the Spotlight?
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