The dollar pared losses in neutral trade on Tuesday, where it initially fell after data showed US consumer price inflation rose 0.1% in November, beating economists’ expectations of no change for the month. In addition the Fed meeting funds rate are awaited.
Annual consumer price growth slowed to 3.1 percent last month from 3.2 percent in October, according to data released Tuesday by the Bureau of Labor Statistics. The reading was up 0.1 percent over the month. Economists had predicted measures of 3.1% and 0.0%. Crude oil prices fell as traders feared a further cut in interest rates by the US Federal Reserve early next year after the Fed meeting scheduled.
Gold prices pared gains on Tuesday after data showed US consumer prices rose unexpectedly in November, while traders focus has shifted to central bank policy meetings to clarify the direction of monetary policy. The meeting is due today night.
The dollar index, which measures the currency against six major equivalents, fell 0.22% to 103.904. MCX gold futures 61550 rose 0.08%. Silver price 73046 rose 0.06%. The price of copper was 715.55, increasing by 0.19%. The price of crude oil fell to 5,715, down 4.26%. Natural gas fell 1.50% at 195.80 .
Economic data and events scheduled – Final hours before the FED meeting:
Eurozone
At 2.30pm- Italian Quarterly Unemployment Rate. Data is foreseen at 7.6% from previous 7.6%.
At 3.30pm- Industrial Production m/m. Data is foreseen at -0.3% from previous -1.1%.
Above data could have a volatile impact on the Eur.
UK
At 2.30pm-
GDP m/m. Data is foreseen at -0.1% from previous 0.2%.
Construction Output m/m. Data is foreseen at -0.2% from previous 0.4%.
Goods Trade Balance. Data is foreseen at -14.1B from previous -14.3B.
Index of Services 3m/3m. Data is foreseen at 0.2% from previous -0.1%.
Industrial Production m/m. Data is foreseen at -0.1% from previous 0.0%.
Manufacturing Production m/m. Data is foreseen at 0.0% from previous 0.1%.
Above data could have a volatile impact on the Eur.
Canada
Tentative- New Loans. Data is foreseen at 1300B from previous 738B.
Tentative – M2 Money Supply y/y. Data is foreseen at 10.0% from previous 10.3%.
Above data could have a positive impact on the Yuan.
U.S.
At 7.00pm –
Core PPI m/m. Data is foreseen at 0.2% from previous 0.0%.
PPI m/m. Data is foreseen at 0.0% from previous -0.5%.
At 9.00pm- Crude Oil Inventories. Foreseen at -1.9M from previous -4.6M.
At 12.30am-
Federal Funds Rate. Forecast 5.50% unchanged from previous 5.50%.
FOMC Economic Projections. FOMC Statement.
At 1.00am – FOMC Press Conference
Above data and event could have a volatile impact on the dollar.
Commodity Samachar
Learn and Trade with Ease
Also Read: Forex Outlook: How RBI Dollar Sales Might Shape the INR’s Destiny , US Dollar in Focus: Will the US CPI give final cues for Fed meeting?
Recommended Read: Forex News Letter : Do All Market Paths Lead to the US?