The US dollar weakens nearly half percent against the major currencies peers as the PMI report turned out to be weak. The agency showed that the manufacturing PMI fell surprisingly sharply to 49.9, compared to expectations of 52.0 and the previous reading of 51.9.
The services PMI, which represents the service sector that makes up two thirds of the economy, also surprisingly. fell to 50.9-le expectations of 52.0 and the previous reading of 51.7. A sharp decline in the PMI suggests weak household consumption or owners stockpiling.
Eurozone data showed the HCOB Services PMI rose to 52.9 in April from 51.5 in March, well ahead of expectations at 51.8:
The price of gold. fell by 2.21%. Prices are falling after Israel and Iran pulled back from the brink of an increasingly aggressive spiral. Prices are valid from April 10 for the lowest solution. The decline halted a rally that has seen gold prices rise more than 20% since mid-February.
Crude oil prices slipped on Tuesday after a short-lived boost from stronger economic data out of Europe as the market weighed the potential fallout from any fresh U.S. sanctions on Iranian oil exports.
Meanwhile, EU foreign ministers agreed in principle on Monday to expand sanctions on Iran after its missile and drone attack on Israel this month.
The U.S. Senate will begin considering a foreign aid package that includes sanctions on Iran’s oil exports, targeting ships, ports and refineries that handle Iranian oil.
Gold prices rebounded after slipping below the crucial support of $2,300 in Tuesday’s early American session. The yellow metal rebounds after weak S&P Global United States preliminary PMI for April weighed on the US Dollar.
Copper prices retreated on Tuesday on profit-taking by funds and hedging by producers after a speculation-led rally sent the market to a two-year high.
MCX gold futures settled -0.26% to 71029.Silver settled +0.12% to 80678. Copper settled -0.79% to 837.60. Crude oil +1.38% at 6928. Natural gas +0.40% to 149.10.
Economic data and events scheduled today.
Eurozone
At 12.30pm- German Buba President Nagel Speaks.
At 1.30pm- German ifo Business Climate. Data is foreseen at 88.9 from previous 87.8.
All above data could have a neutral impact on the Euro.
UK
At 3.30pm- CBI Industrial Order Expectations. Data is foreseen at -16 from previous -18.00.
Above data could have a neutral impact on the pound.
Canada
At 6.00 pm-
Core Retail Sales m/m. Data is foreseen at 0.0% from previous 0.5%.
Retail Sales m/m. Data is foreseen at 0.1% from previous -0.3%.
Above speech and data could have a mixed impact on the dollar.
US
At 6.00pm-
Core Durable Goods Orders m/m. Data is foreseen at 0.3% from previous 0.3%.
Durable Goods Orders m/m. Data is foreseen at 2.5% from previous 1.3%.
At 8.00pm- Crude Oil Inventories. Data is foreseen at 1.7M from previous 2.7M.
Above data could have a volatile impact on the dollar.
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Commodity Samachar
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