The US dollar was lower on Thursday; The euro rose slightly, while the Japanese yen hit a multi-month high ahead of next week’s Bank of Japan meeting. In focus, core PCE Price Index today
The Japanese yen rose for a fourth straight session against the dollar on Thursday, hitting a 2-1/2-month high, as investors trimmed their long bets on the currency ahead of next week’s Bank of Japan meeting.
The unwinding of short bets against the yen, a financial currency used in transfer transactions, came amid a recent slide in global stocks that is sending investors to traditionally safe-haven assets such as the Swiss franc and the Japanese currency. However, US stocks recovered on Thursday after sharp selling in the previous session. of.
Advance estimates showed that U.S. gross domestic product (GDP) grew at a 2.8% annualized rate in the last quarter. Economists polled by Reuters had forecast GDP rising at a 2.0% rate.
The personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, increased at a 2.9% rate after surging at a 3.7% pace in the first quarter.
Other data showed that Initial Jobless Claims for the week ending July 19, reported a better-than-expected figure of 235K. On the negative side, June’s Durable Goods Orders saw a significant drop of 6.6%.
Gold dropped more than 2%, after a better-than-expected reading on U.S. gross domestic product fed the potential for higher-for-longer U.S. interest rates, which contributed to a drop in the price of the precious metal to the lowest level in more than two weeks.
Crude Oil prices edged higher after strong U.S. economic data stoked expectations for higher crude demand, but the gains were limited by concerns about lower oil imports from China.
Copper Prices slipped again and were hovering around a three-and-a-half-month low hit in the previous session, amid demand concerns in top consumer China and a risk-off sentiment.
MCX gold futures settled -2.16% to 67462.Silver settled -4.20% to 81331. Copper settled +0.04% to 796. Crude oil +0.78% at 6572. Natural gas -2.93% to 172.50.
Economic data and events scheduled today (Core PCE Price Index)
Japan
At 5.00am- Tokyo Core CPI y/y. Data is foreseen at 2.2% from previous 2.1%.
Above data could have a positive impact on the Yen.
Eurozone
At 1.30pm-
Spanish Unemployment Rate. Data is foreseen at 11.4% from previous 12.3%.
Above data could have a volatile impact on the Euro.
US
At 6.00pm-
Core PCE Price Index m/m. Data is foreseen at 0.2% from previous 0.1%.
Personal Income m/m. Data is foreseen at 0.4% from previous 0.5%.
Personal Spending m/m. Data is foreseen at 0.3% from previous 0.2%.
At 7.30pm-
Revised UoM Consumer Sentiment. Data is foreseen at 66.3 from previous 66.00.
Revised UoM Inflation Expectations. Previous 2.9%.
Day2- G20 Meetings.
Above data could have a volatile on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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