Today, The Personal Consumption Expenditures price index for January is due and is expected to reiterate that inflation remained sticky through the month. The reading is also likely to attract more calls by the Fed for sharper interest rate hikes in the coming months.
Inflation readings from Japan are to be released and expected to show that price pressures remain elevated across the globe, likely eliciting tighter monetary conditions.
Global commodities witnessed a significant plunge yesterday. Gold prices fell by 0.97% while Silver plunged by 1.71%. Base metal front, Copper witnessed 2.76% plunge. However, Crude Oil price recovered by 1.34%, but then pared gains as a much sharper rise than expected in U.S. inventories partially offset Russian supply curbs.
The dollar strengthened by 0.22% against most major currencies and traded at 104.717 at 11.50 pm.
Economic Calendar and possible impact
Japan
Japan National Core CPI y/y at 5.20am, previous was at 4.0%, forecast is slightly higher at 4.3%.
A higher than previous data could have a positive impact on Yen.
BOJ Gov-Designate Ueda Speaks time is tentative (could have a significant impact on Yen).
Eurozone data at 3.30pm
German Final GDP q/q , previous was at -0.2%, forecast unchanged at -0.2%.
German GfK Consumer Climate, previous was at -33.9%, forecast is -30.6%.
Above data expect to have a negative impact on Euro and bullions.
UK
MPC Member Tenreyro Speaks at 10.pm
Could have a volatile impact on a Pound.
U.S. At 7.00pm
Core PCE Price Index m/m, previous 0.3%, forecast is slightly higher at 0.4%.
Personal Income m/m, previous week was at 0.2%, forecast is higher at 1%.
Personal spending m/m, previous was at -0.2%, forecast is higher at 1.4%.
At 7.30pm
New Home Sales, previous was at 616k; forecast is higher at 620k.
Revised UoM Consumer Sentiment, previous was at 66.4, forecast unchanged at 66.4.
FOMC Member Jefferson Speaks at 8.45pm
All the above data could have a slightly positive impact on the dollar.