Amidst the anticipation for the Europe Inflation data, the dollar retreated against its major counterparts after U.S. jobless claims increased above then market forecast last week. The data indicate a cooling labour market that could prompt the Federal Reserve to cut interest rates in early 2024 and engineer an economic soft landing.
Initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 231,000 for the week ended Nov. 11, the Labour Department said. Economists polled by Reuters had forecast 220,000 claims for the latest week amidst the much anticipated Europe inflation.
Furthermore, Industrial Production showed a 0.3% decline and a 0.6% drop in MoM expected by the markets.
Crude oil plunged more than 5%, extending losses from the previous session, as investors in New York responded to signals of higher supply in the United States , expectations of weak energy demand in China and also due to anticipation of the Europe Inflation data.
Bullions were able to gain more than 1%, driven by a decline in US Treasuries and US dollar, which fell after the report of weak US data.
The dollar index which measures the currency against six major counterparts fell 0.01% at 104.380. MCX Gold future settled at 60690, up 0.96%. Silver at 73190 up 1.16%. Copper prices settled at 707.55 down 0.62%. Crude oil settled at 6086 down 5.25%. Natural gas settled 257.70 down 4.55%
Economic Data and Events Scheduled – Will Europe Inflation Be In Focus?
Eurozone
At 2.00pm -ECB President Lagarde Speaks.
At 2.30pm – Current Account. Data is foreseen at 20.3B from previous 27.7B.
At 3.30pm –
Final Core CPI y/y. Data is foreseen at 4.2% from previous 4.2%.
Final CPI y/y. Data is foreseen at 2.9% from previous 2.9%.
Above data could have a volatile impact on the Eur.
U.K.
At 12.30pm – Retail Sales m/m. Data is foreseen at 0.5% from previous -0.9%.
At 6.30pm – MPC Member Ramsden Speaks.
At 6.45pm – MPC Member Greene Speaks.
Above data could have a volatile impact on the Pound.
Canada
At 7.00pm-
Foreign Securities Purchases. Previous -8.47B0
IPPI m/m. Data is foreseen at 0.2% from the previous 0.4%.
RMPI m/m. Data is foreseen at -2.0% from previous 3.5%.
Above data could have a negative impact on the Canadian dollar.
U.S.–
At 7.00pm –
Building Permits. Data is foreseen at 1.45M from previous 1.47M.
Housing Starts. Data is foreseen at 1.35M from previous 1.36M.
At 8.15pm – FOMC Member Goolsbee Speaks.
Above data and speech could have a volatile impact on the dollar.
Commodity Samachar
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