Most Asian currencies were broadly unchanged on Wednesday, while the dollar fell to a five-month low as bets continued on the US Federal Reserve to cut interest rates from early 2024.
However, currency movements were muted on the day after Christmas, as markets including the UK, Australia, New Zealand and Hong Kong still celebrated public holidays. Many American businessmen are also on vacation until the New Year as per the latest economic update.
Crude fell more than 2%, erasing the previous day’s gains, as investors watched developments in the Red Sea, where ships are returning despite Tuesday’s attacks.
As per the latest economic update, Danish shipping company Maersk said it plans to operate several dozen containers through the Suez Canal and the Red Sea in the coming weeks, after temporarily suspending the routes this month following attacks by Yemen’s Iran-backed Houthi militia.
France and CMA CGM say it will continue its voyage through the Red Sea after an international task force was sent to the area.
Gold is recovering as the US plans to cut interest rates in 2024. Base metal prices were boosted by a rise in industrial profits in top metals consumer China and a weaker dollar, while aluminum hit an eight-month high due to supply problems.
MCX gold futures up 1.03% to 63988. Silver up 0.77% to 76713. Copper was up by 0.91% at 739.30. Crude oil at 6211, retreated 1.65% Natural gas down 2.22% at 207.4.
Economic Update and events scheduled:
U.S.–
At 7.00pm-
Unemployment Claims. Data is foreseen at 211k from previous 205k.
Goods Trade Balance. Data is foreseen at -88.6B from previous -89.6B.
Prelim Wholesale Inventories m/m. Data is foreseen at -0.2% from previous -0.4%.
At 8.30pm- Pending Home Sales m/m. Data is foreseen at 0.8% from previous -1.5%.
At 9.00pm- Natural Gas Storage. Data is foreseen at -80B from previous -87B.
At 9.30pm- Crude Oil Inventories. Data is foreseen at -2.7M from previous 2.9M.
Above data could have a volatile impact on the dollar.
Commodity Samachar
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Also Read: With the holidays in full swing, will Japan Housing data be in focus? , Crude Oil Gained Over 2.50%, will it gain further or not?
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