Today, Europe will release CPI data year on year. Eurozone inflation data could help set the stage for the ECB who are expected to raise rates by an additional 50-basis point (0.5%) in March. the ECB (European Central Bank) has reconfirmed their commitment to taming inflation through additional rate hikes, higher rates and persistent price pressures continue to weigh on consumers, which could put pressure on the Euro.
A revised reading on fourth-quarter U.S. GDP is due later in the day, with any continued signs of resilience in the economy giving the Fed more headroom to keep raising interest rates. Stronger-than-expected readings on business activity furthered such a notion this week.
Yesterday, Gold prices settled with slight losses, as the dollar hit a six-week high on fears of a hawkish Federal Reserve, with focus now turning to upcoming economic data for more cues on the U.S. economy and monetary policy.
The dollar strengthened by 0.38% against most major currencies and settled at 104.496. Comex GOLD future down 0.57% to $1824.29 an ounce, while MCX gold futures fell -0.15% to 56083.
MCX Crude dropped 3% and settled at 6174, while Brent Crude futures dropped 2.76% to $80.26 per barrel. West Texas Intermediate crude futures (WTI) down 3.05% and settled at $73.83 a barrel.
The minutes of the Fed’s February meeting, released on Wednesday, showed that most members of the monetary policy committee supported raising interest rates for longer this year. But their calls for 25 basis point hikes were regarded as outdated, given that data after the Fed’s meeting showed that inflation remained much stickier than expected.
Economic calendar and possible impact
Japan does not have any data due to the Bank Holiday.
Eurozone data at 3.30pm
Final CPI y/y , previous was at 8.5%, forecast is 8.6%.
Final Core CPI y/y, previous was at 5.2%, forecast is 5.2%.
A higher than previous inflation could have a negative impact on Euro and bullions.
UK
MPC Member Mann Speaks at 3.00pm, this could have a volatile impact on the pound.
MPC Member Cunliffe Speaks at 4.15pm, this could have a volatile impact on the pound.
CBI Realized Sales, previous was at -23, forecast is -11. Data could have a neutral impact on Pound.
U.S. At 7.00pm
Prelim GDP q/q, previous 2.9% unchanged from 2.9%.
Weekly Unemployment Claims, previous week was at 194k, forecast is 200k
Prelim GDP Price Index q/q, previous was at 3.5%, forecast is 3.5%.
All the above data could have a slightly negative impact on the dollar.
Natural Gas Storage at 9.00pm , pervious inventory was at -100B
Crude Oil Inventories at 9.30pm, previous inventory was at 16.3M