The dollar retreated against its major counterparts on Monday as risk sentiment improved on hopes China’s policy stimulus might stabilize the economy, while U.S. jobs data boosted bets the Federal Reserve could be at the end of its rate hike cycle.
With U.S. markets closed on Monday, liquidity is likely to be thin and traders hesitant to place large bets.
China stepped up measures to boost the country’s faltering economy, with Beijing planning further action including relaxing home-purchase restrictions.
Gold prices stayed neutral yesterday as cooling labour market conditions boosted the Federal Reserve’s soft-landing hopes.
Crude oil extended its gain on Monday also. It hit a multi week high on expectations that OPEC+ would keep supplies tight and speculation that the U.S. Federal Reserve will cease its aggressive interest rate hike campaign.
Saudi Arabia has spearheaded efforts to support prices, making large voluntary output cuts as part of a production deal agreed by the OPEC+ producer group comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia.
MCX Gold futures settled at 59393, almost flat. Silver at 74521 down 0.76%. Copper prices settled at 736.60 down 0.45%. Crude oil settled at 7109 up 0.64%. Natural gas settled at 220.70 down 3.96%.
Economic data and events scheduled today
Bank of Australia
At 10.00pm -Cash Rate. Forecast is 4.10%, unchanged from previous.
Above data could have a neutral impact on the dollar.
Eurozone
At 12.145pm – Spanish Services PMI. Previous was at 51.6, forecast is 51.50.
At 1.15pm – Italian Services PMI. Data is foreseen at 50.30, previous was at 51.50.
At 1.20pm- French Final Services PMI. Data is foreseen at 46.70 unchanged.
At 1.25pm German Final Services PMI. Data is foreseen at 47.30 unchanged from previous.
At 1.30pm – Final Services PMI. Data is foreseen at 48.30 unchanged from previous.
At 2.30pm – PPI m/m. Data is foreseen at -0.50% from previous -0.40%.
All above data could have a neutral impact on the Euro.
U.K.
At 2.00pm – Final Services PMI. Foreseen at 48.70 unchanged from previous.
All above data could have a neutral impact on the Pound.
U.S.
At 7.30pm –Factory Orders m/m. Forecast is -2.50% from 2.3%.
Tentative – IBD/TIPP Economic Optimism. Forecast is 41.10 from the previous 40.30.
All above data could have a neutral impact on the dollar.