Market may be on a roller coaster ride today.
Global commodities prices rebound sharply yesterday, as markets awaited fresh cues on monetary policy from a string of major central bank meetings this week.
Today is the day for the Indian Union Budget and US Fed policy and market may be on a roller coaster ride.
MCX Gold prices witnessed a smart recovery from day’s low 56627 and settled at 57190. Comex Gold future up by 0.27% to $1,928.26 an ounce, recovered from day’s low $1900.86 an ounce.
Bullions pulled back sharply, as markets awaited fresh cues on monetary policy from a string of major central bank meetings this week, starting with the Federal Reserve later in the day.
The dollar steadied from recent losses this week, also pressuring commodity markets. Focus is also on the European Central Bank and the Bank of England, both of which are expected to hike rates by 50 basis points each on Thursday.
Base metal also advanced after government data showed that Chinese business activity rebounded sharply in January after the country relaxed its strict anti-COVID policies.
Crude oil future Oil prices climbed on Wednesday underpinned by a weaker dollar. MCX CRUDE Up by 0.70% at 6463, recovered from low 6292. Brent futures for March delivery up to $85.44 a barrel, a 1.23% gain. U.S. crude up by 1.57% and settled at $79.00 per barrel.
Today, the Economic calendar starts at 7.15:am with Caixin Manufacturing PMI data. Data expected to be positive for Metals and Yuan. Data is foreseen at 49.8 Vs 49.0 previous.
At 1.45.pm – Spanish Manufacturing PMI could bring positive momentum for Euro. As data is foreseen higher at 47.9 vs. previous 46.4.
At 2.15 pm – Italian Manufacturing PMI data is due to release. Data is foreseen 49.6 higher from previous 48.5. This may have a positive impact on Euro.
At 2.20pm – French Final Manufacturing PMI and German Final Manufacturing PMI are to be released. Both data foreseen unchanged from previous 50.8 and 47.00 consequently.
At 2.30 pm – Final Manufacturing PMI of Eurozone could have neutral impact on Euro, as data foreseen unchanged from previous at 48.8.
At 3.30 pm –Euro zone CPI Flash Estimate y/y (foreseen at 9.0% Vs 9.2% previous) and Core CPI Flash Estimate y/y(foreseen at 5.1% Vs 5.2% previous) to be released. Both data may bring clutter for Euro and Bullions. Data will provide some clues before ECB monetary policy.
At the same time, Eurozone Unemployment Rate could have a neutral impact, as data foreseen unchanged from previous 6.5%.
At6.45pm – US ADP Non-Farm Employment Change may have a negative impact on the dollar. Data foreseen 176K Vs previous reading 235k.
At 8.30pm – US ISM Manufacturing PMI data may extend negative momentum for the Euro. Data foreseen at 48.00 Vs previous reading 48.4
At same time, JOLTS Job Openings due to release. Data foreseen at 10.28M Vs previous 10.46M. Data may have negative impact on Dollar.
Evening session data could be supportive for Bullion as Dollar index may show weakness, Based on foreseen data.
At 12.30am – Foremost important event will be the FED Policy decision. A slower interest rate hike or pause will give clutter for the dollar index.Â