The European Central Bank’s decision will be in focus today as markets await potential policy changes.
Dollar Index
The U.S. dollar surged to an 11-week high  103.60 on Wednesday, with the focus on investors dismissed chances of a steep Fed rate cut, factoring in a potential Trump election victory. Meanwhile, the British pound plunged to a two-month low after weaker-than-expected UK inflation data hinted at aggressive rate cuts from the Bank of England. The euro also dropped to its 11-week low ahead of the European Central Bank meeting, amplifying market tensions.
Crude Oil:
The oil price edges lower after selling off on reports that Israel will not attack Iran’s oil facilities. Israel told the United States that a planned retaliatory attack on Iran won’t target nuclear and oil facilities, according to senior Biden administration officials, a promise sought by the White House to head off further Middle East escalation and to avoid a potential oil price increase, per the Wall Street Journal. Traders will closely watch the developments surrounding the geopolitical tensions in the Middle East. Any signs of escalation could lift the price.
Gold:
Gold prices steadied close to record highs in Asian trade on Wednesday, recouping some recent losses as trader’s maintained bets that the Federal Reserve will cut interest rates further.
Copper:
Copper prices steadied after logging steep losses in recent sessions, amid doubts over China’s recent stimulus efforts. Copper prices sank in recent sessions as traders were mostly underwhelmed by recent stimulus measures from top importer China, especially as Beijing left out details on the size and timing of the planned measures.
Prices action (MCX)
Gold 76664 (+0.40%), Silver 92183 (+0.60%), Copper 821.05(+0.48%) Crude Oil 5923(0.01%) Natural gas 200.40 (0.48%)
Yesterday focus Data and Event Update –
· British inflation fell by more than expected last month, including key measures watched by the Bank of England, according to data on Wednesday that bolstered bets on an interest rate cut next month.
· The rate of annual consumer price inflation dropped to 1.7% in September from 2.2% in August, the lowest reading since April 2021, the Office for National Statistics said.
· Core inflation, which excludes the energy, food, alcohol and tobacco, dropped to 3.2% from 3.6% in August.
Major Economic Data and Event scheduled today will be in focus
Japan
At 5.20am- Trade Balance. Data is foreseen at -0.49T from previous -0.60T.
At 10.20am- Tertiary Industry Activity m/m. Data is foreseen at -0.2% from previous 1.4%.
Above data could have a neutral impact on the Yen.
Australia
At 6.00am
Employment Change. Data is foreseen at 25.2K from previous 47.5K.
Employment Rate. Data is foreseen at 4.2% from previous 4.2%.
RBA Bulletin.
Above data could have a positive impact on the dollar.
Eurozone
At 2.30pm-
Final Core CPI y/y. Data is foreseen at 2.7% from previous 2.7%.
Final CPI y/y. Data is foreseen at 1.8% from previous 1.8%.
Italian Trade Balance. Data is foreseen at 5.55B from previous 6.74B.
Trade Balance. Data is foreseen at 17.8B from previous 15.5B.
At 5.45pm-
Main Refinancing Rate. Data is foreseen at 3.40% from previous 3.65%.
At 6.15pm- ECB Press Conference.
Above data and policy could have a volatile impact on the Euro.
Canada
At 6.00am- Foreign Securities Purchases. Data is foreseen at 9.50B from previous 10.98B.
Above data could have a volatile impact on the dollar.
US
At 6.00pm-
Core Retail Sales m/m. Data is foreseen at 0.1% from previous 0.1%.
Retail Sales m/m. Data is foreseen at 0.3% from previous 0.1%.
Unemployment Claims. Data is foreseen at 241k from previous 258k.
Philly Fed Manufacturing Index. Data is foreseen at 4.2 from previous 1.7.
At 6.45pm-
Capacity Utilization Rate. Data is foreseen at 77.9% from previous 78%.
Industrial Production m/m. Data is foreseen at 0.1% from previous 0.8%.
At 7.30pm-
Business Inventories m/m. Data is foreseen at 0.3% from previous 0.4%.
NAHB Housing Market Index. Data is foreseen at 43 from previous 41
At 8.00pm- Natural Gas Storage.
At 8.30pm-
Crude Oil Inventories.
FOMC Member Goolsbee Speaks.
Tentative- Federal Budget Balance. Data is foreseen at 4.5B from previous -380.1B
Above data could have a volatile impact on the dollar.
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