FOMC Meeting Minutes in Focus Today

FOMC Meeting Minutes in Focus Today

The dollar retreated on Monday to 106.83, down 0.61% after a stellar run as the pick for U.S. Treasury secretary seemed to reassure the bond market about fiscal discipline, pulling yields lower and shaving some of the currency’s rate advantage.

Yields on 10-year Treasuries US10YT slipped to 4.343%, from 4.412% late on Friday, as President-elect Donald Trump’s choice of fund manager Scott Bessent was welcomed by the bond market as an old Wall Street hand and fiscal conservative.

However, Bessent has also openly favored a strong dollar and supported tariffs, suggesting any pullback in the currency might be fleeting. The dollar  has risen for eight consecutive weeks with many technical indicators flashing overbought on bets Trump’s policies would stoke inflation and further support the greenback..

Crude Oil:

Crude Oil prices steadied following 6% gains last week, with mounting tensions between Western powers and major oil producers Russia and Iran raising fears of supply disruptions and keeping a floor under prices.

Gold:

Gold prices declined over two percent as investors booked profits following a five-session rally to a three-week high, while the announcement of fund manager Scott Bessent as the new U.S. Treasury Secretary tempered safe-haven buying.

Copper:

Copper prices drop over half percent amid hunting and increased risk appetite after the choice of fund manager Scott Bessent as U.S. Treasury secretary.

MCX Closing Update

Gold 75311(Down 2.97%), Silver 87699 (Down 3.38%), Crude oil 5826 (Down 3.35%), Copper 807.30 (Down 0.79%), Natural Gas 284.10 (Up 7.65%)

Major Economic Data and Event s today

·         The Ifo institute said its business climate index decreased to 85.7 in November from 86.5 in the previous month, a survey showed on Monday. Analysts polled by Reuters had forecast a reading of 86.0.

·         Singaporea Consumer price index inflation rose 1.4% in October from a year earlier, lower than a forecast of 1.8% due to a moderation in services, electricity and gas, and other goods inflation, official data showed on Monday.

·         U.S. President-elect Donald Trump said on Monday that on his first day in office he would impose a 25% tariff on all products from Mexico and Canada, and an additional 10% tariff on goods from China, citing concerns over illegal immigration and the trade of illicit drugs.

Major Economic Data and Event scheduled today (FOMC Meeting Minutes in Focus Today)

Japan

At 5.20am- SPPI y/y. Data is foreseen at 2.5% from previous 2.6%.

At 6.20am- BOJ Core CPI y/y. Data is foreseen at 2.5% from previous 2.6%.

Above data could have a volatile impact on the Yen.

UK

At 4.30 pm- CBI Realized Sales. Data is foreseen at -14 from previous -6.00.

At 8.30pm- MPC Member Pill Speaks.

Above event could have a mixed impact on the Pound.

Eurozone

At 6.35pm- Gov Council Member Mendes Speaks

Above data could have a volatile impact on the dollar.

US

At 8.30pm-

CB Consumer Confidence. Data is foreseen at 112 from previous 108.70.

New Home Sales. Data is foreseen at 724k from previous 738k.

Richmond Manufacturing Index. Data is foreseen at -10 from previous -14.00.

At 12.30am- FOMC Meeting Minutes

Above data could have a volatile impact on the dollar.

Until then, Happy Trading!

Commodity Samachar Securities
We Decode the Language of the Markets

Also Read: Forex Focus: Dollar Wavers Amid Profit-Taking & Tensions , Market Insights: Nifty & Bank Nifty Trends, Q2 Results Update

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