Eurozone Inflation, India GDP number will play important role today

Euro Zone Inflation, India GDP numbers will play an important role today

Dollar struggled for direction yesterday as the focus is likely to shift from the debt ceiling to the jobs report later this week. This might increase the likelihood of a subsequent Federal Reserve rate increase next month.

In order to suspend the $31.4 trillion debt ceiling until January 1, 2025, U.S. President Joe Biden and House Speaker Kevin McCarthy reached a budget agreement on Sunday. They said the deal was ready to move to Congress for a vote.

The dollar index settled almost flat at 104.057, retreating from the high of 104.5340.

Bullions remained under pressure. Gold prices settled at 59946 and settled up by 0.89%. Silver stayed in red and settled at 71043, with a minor loss of 0.12%.

Base Metals had a negative trade yesterday amid fear of a further deterioration in economic conditions this year.

Copper prices settled at 710.75, down by 0.50%, Zinc prices down by 1.81% and settled at 208.85. Aluminum and Lead prices settled with a loss of 0.72%, and 0.16% respectively.

Weaker-than-expected manufacturing activity readings from China may put pressure on the base metals prices.

Crude prices witnessed a speculative plunge yesterday. Prices dropped significantly amid jitters about Fed rate hikes and OPEC’s decision on output.

Brent crude futures were down by 4.24% to $73.59. U.S. West Texas Intermediate crude was at $69.49 a barrel, down 4.80%. MCX crude oil plunged by 4.64% and settled at 5756.

Economic data and events to watch


At 10.30 am- Consumer Confidence to be released. Data is foreseen at 36.10, higher than 35.4 previously.

Housing Starts y/y, data is foreseen at -0.9%, recovered from the previous contraction of 3.2%.

All the above data may have a positive effect on the Yen.


At 11.30 am- German Import Prices m/m are to be released. Data is foreseen at -0.6%, from 1.10% previously.

Tentative – German Prelim CPI m/m. Data was foreseen at 0.2%, lower than the previous 0.4%.

At 12.15 pm – French Consumer Spending m/m, data are foreseen at 0.3% against contraction of -1.3%.

At 12.15 pm – French Prelim CPI m/m, data is foreseen at 0.3% against 0.6%.

At 12.15 pm – French Prelim GDP q/q, data is foreseen at 0.2%, unchanged from the previous.

At 1.25 pm- German Unemployment Change, data is foreseen at 14k, lower than the previous 24K.

At 1.30- ECB Financial Stability Review.

At 2.30 pm – Italian Prelim CPI m/m, data is foreseen at -0.1% lower than 0.4%.

All the above data may have a volatile impact on the Euro.


At 6.00 pm- GDP m/m is set to release. Data is foreseen to have a contraction of 0.1% from the previous 0.1%.

Above data could have a negative impact on the Canadian dollar.


At 6.20 pm- FOMC Member Bowman, at 10.00 pm – FOMC Member Harker and at 11.00 PM – FOMC Member Jefferson Speaks will bring clutter for the market.

At 7.15 pm- Chicago PMI. Data is foreseen at 47.10, lower than the previous reading of 48.6.

At 7.30 pm – JOLTS Job Openings. Data is foreseen at 9.41M, slightly lower from 9.59 M.

All the above data could have a negative impact on the dollar.


At 5.30 pm- India is set to release its quarterly, YoY GDP growth numbers. Data is foreseen at 4.6% slightly higher than the previous reading of 4.4%.

Above data could have a positive impact on the domestic currency.