Japan Inflation, US Homes sales data in Focus today

Event scheduled today – Japan Inflation, US Homes sales data in Focus today

FX Update

The Indian rupee weakened on Monday, pressured by a decline in the offshore Chinese yuan and month-end importer dollar bids, while dollar-rupee forward premiums nudged higher.

The rupee INR was at 85.11 against the U.S. dollar.

The offshore Chinese yuan fell 0.2% to 7.30 as China’s bond yields dropped in tandem with softer U.S. yields, with China’s 10-year bond yield declining to a record low before stabilizing.

Traders expect the rupee to hold a gradual depreciation bias in the near-term with interventions by the Reserve Bank of India likely to continue damping volatility..

Crude Oil:

Crude Oil prices edged lower on Monday in thin trade ahead of the Christmas holiday on concerns about a supply surplus next year and a strengthened dollar.

Gold:

Gold prices edged lower in subdued holiday-season trading, weighed down by a robust dollar and high U.S. Treasury yields as investors awaited clearer signals on the Federal Reserve’s monetary policy for 2025.

Copper                                                                                                                                   

Copper prices eased, pressured by a stronger dollar in dwindling pre-Christmas activity. The U.S. dollar has appreciated nearly 7% this year, creating headwinds for growth-dependent metals, but most posted gains, with the exception of nickel and lead. While most market strategists forecast continued strength for the dollar next year, the metals markets are also preparing for the possible impact of tariffs threatened by U.S. President-elect Donald Trump.

MCX Closing Update

Gold 76,100 (-0.42%), Silver 89,079 (0.78%), Crude oil 5,900 (-0.64%), Copper 793.25(-0.65%), Natural Gas 311.10 (-2.84%).

Major Economic Data and Event Update

·         UK economic growth stalled in Q3, with the ONS revising GDP growth to 0.0%, down from 0.1%. Q2 growth was also trimmed to 0.4%. PM Keir Starmer, who took office in July, faces a sluggish economy and introduced employer tax hikes in the October budget.

·         US Consumer Confidence index, a key barometer of consumer sentiment and spending in the US economy, has recorded a lower-than-expected reading. The actual figure came in at 104.7, significantly underperforming the forecasted level of 112.9.

·         Durable goods orders fell -1.1%, missing the forecasted 0.3% growth, signaling a notable slowdown in manufacturing activity.

Economic Data and Event scheduled today – Japan Inflation, US Homes sales data

Japan

At 5.20am. Monetary Policy Meeting Minutes

At 1.30am- BOJ Core CPI y/y. Data is foreseen at 1.5% from previous 1.5%.

Above data could have an volatile impact on the Yen.

Eurozone

German Bank Holiday.

US

At 7.00pm-

Core Durable Goods Orders m/m. Data is foreseen at 0.3% from previous 0.2%.

Durable Goods Orders m/m. Data is foreseen at -0.3% from previous 0.3%.

At 8.30pm-

New Home Sales. Data is foreseen at 666k from previous 610k.

Richmond Manufacturing Index. Data is foreseen at -11 from previous -14.

Above data could have a volatile impact on the dollar.

Until then, Happy Trading!

Commodity Samachar Securities
We Decode the Language of the Markets

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