Th morning bid is out and here’s the latest news. The dollar jumped against major currencies on Thursday after data showed consumer price inflation outpaced economists expectations for December, raising doubts that the Federal Reserve will cut interest rates as soon as investors expect.
The US seasonally adjusted annual consumer price index (CPI) in the world’s largest economy rose to 3.4 percent last month, up from 3.1 percent in November, data from the Bureau of Labor Statistics showed on Thursday.
In the month, the pace increased to 0.3 percent due to increased defense and energy costs. Economists had those numbers at 3.2 percent and 0.2 percent.
Latest in the Morning Bid, Crude oil fell more than 1 percent higher as geopolitical risks in the Middle East rose after Iran seized an oil tanker in the Gulf of Oman. Crude oil prices are supported by a drop in global oil supplies after Libya and the National Oil Corporation declared force on Sunday at the Sharara oil field, which was shut down last Wednesday when protesters entered the facility. The Sharara oil field is Libya’s number 039 largest and pumps approximately 300,000 barrels per day.
Gold rebounded in early Asian trade today as geopolitical tensions rose in the Middle East. The US-led coalition has hit more than a dozen Houthi rebel targets in Yemen. A sudden escalation of conflict could strengthen the role of gold as a safe haven. The expected December US inflation report will not change investors or anything else, although it is higher than expected; expectations about interest rates.
MCX gold futures down 0.34% to 61788. Silver settled down 0.85% at 71354. Copper up 0.08% to 717. Crude oil up 1.26% at 6006. Natural gas up 6.71% to 265.50.
Economic data and events scheduled today.
Japan
At 5.20am –
Bank Lending y/y. Data is foreseen at 2.7% from previous 2.8%.
Current Account. Data is foreseen at 2.18T from previous 2.62T.
Above data could have a negative impact on the Yen.
China
At 7.00am-
CPI y/y. Data is foreseen at -0.4% from previous -0.5%.
PPI y/y. Data is foreseen at -2.6% from previous -3.0%.
Tentative- New Loans. Data is foreseen at 1360B from pervious 1090B.
Tentative- M2 Money Supply y/y. Data is foreseen at 10.1% from pervious 10%.
Above data could have a volatile impact on the Yuan.
Japan
At 10.30am- Economy Watchers Sentiment. Data is foreseen at 49.9 from previous 49.5.
Above data could have a positive impact on the Yen.
UK
At 12.30am-
GDP m/m. Data is foreseen at 0.2% from previous -0.30%.
Construction Output m/m. Data is foreseen at 0.2% from previous -0.50%.
Goods Trade Balance. Data is foreseen at -15.7B from pervious -17.0B.
Industrial Production m/m. Data is foreseen at 0.3% from previous -0.8%.
Manufacturing Production m/m. Data is foreseen at 0.3% from pervious -1.1%.
Above data could have a volatile impact on the pound.
Eurozone
At 12.30pm-
French Consumer Spending m/m. Data is foreseen at -0.1% from previous -0.9%.
French Final CPI m/m. Data is foreseen at 0.1% from previous 0.1%.
All above data could have a neutral impact on the Euro.
US
At 7.00pm-
Core PPI m/m. Data is foreseen at 0.2% from previous 0.0%.
PPI m/m. Data is foreseen at 0.1% from previous 0.0%.
Above data could have a positive impact on the dollar
Commodity Samachar
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Also Read: Gold Surge: Will US Inflation Lead to Breaking of Key Support? , Will Today’s US Inflation Data Conjure Speculative Moves in the Market?
Recommended Read: Forex News Letter: What’s Brewing as US CPI Inflation Takes the Spotlight?
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