Today, the US Fed will release the minutes of its February 2023 meeting. A rate hike prospect will likely remain at the forefront of risk sentiment.
The minutes will bring clutter for the entire market. Any rate hike hints will have a significant impact on dollar and bullions prices. It will be interesting to watch how officials are projecting interest rates will go after recent optimism about U.S. employment and consumer prices. Adding to this, New zealand rate decision will be a key data for the focus.
Yesterday Update –
The dollar strengthened by half percent against most major currencies and tested 104.26, after the positive economic data from the US. The euro fell 0.24% to $1.0656, as it came under pressure after data showed eurozone manufacturing activity deteriorated.
Gold prices dropped as the dollar edged higher and bond yields rose. Comex GOLD future were down by 0.42% and traded at $1833.17 an ounce at 11.55pm yesterday. MCX gold futures were down by -0.8% and setetled at 56168.
Crude Oil prices retreated from the day’s high 6446 and settled at 6385. It had a volatile session as persistent concerns about global economic growth outweighed supply curbs and prompted investors to take profits on the previous day’s gains.
Base metals struggled for direction, as traders assessed optimism over China’s recovery. And future Federal Reserve interest rate hikes and uncertain global supply.
Economic calendar and possible impact
Japan Flash Manufacturing PMI at 5.20 will be released. Data foreseen at 1.5%, previous reading was at 1.5%.
New zealand data at 6.30am
Official Cash Rate previous at 4.25%. Forecast is at 4.75%.
RBNZ Monetary Policy Statement.
Rate Statement
Press Conference at 7.30am.
A rate hike by Newzeland will have a positive impact on the dollar.
Eurozone data
German Final CPI m/m at 12.30pm, previous was at 1.0%, forecast is 1.0%.
German ifo Business Climate at 2.30pm, previous was at 90.2, forecast is at 91.1.
All above the economic data from the Eurozone will have a positive impact on Euro and bullions.
Canada
NHPI m/m at 7.00pm, previous was at 0.0%, forecast is at 0.1%.
Above data could have a positive impact on the Canadian dollar and for bullions.
U.S.
FOMC Meeting Minutes at 12.30am
A prospect of Rate hike by members will have a significant positive impact on the dollar and negative for bullions.