The News today and economic data on the frontier looks quite interesting.
The US dollar strengthened after data showed the world’s largest economy’s service sector recovered in May from last month’s contraction, underscoring uncertainty about the start of the Federal Reserve’s expected easing cycle this – per year of.
The Institute for Supply Management said its nonmanufacturing purchasing managers index rose to 53.8 last month from 49.4 in April. May’s reading, the highest since August, overshot estimates of a 50.8 reading.
The dollar index was last up 0.14% at 104.2910. The euro down 0.10% to $1.08684. Sterling up 0.13% to $1.27865.
the Bank of Canada (BOC) cut interest rates by 25 basis points (bps) to 4.75%, its first cut in four years. The bank said more easing was likely if inflation continued to moderate.
The U.S. dollar rose against the Canadian currency after the BOC rate move, and was last up 0.1% at $1.3688 USDCAD
Gold rose, building on the previous session’s gains as investors awaited U.S. non-farm payrolls data that could determine whether interest rates will be cut earlier than expected this year.
Crude oil rose on rising expectations the Federal Reserve will cut interest rates in September, and as the market rebounded from a selloff related to growing U.S. inventories and an OPEC+ plan to increase supply.
Copper rises amid hopes that more monetary policy easing is in the pipeline. That comes after Bank of Canada cut its policy rate by 25 bps becoming the first G-7 central bank to lower rates following an aggressive tightening cycle started in 2022.
MCX gold futures settled +0.72% to 72518.Silver settled +0.88% to 90444.Copper settled +0.71% to 869.65. Crude oil +0.37% at 6190. Natural gas +3.92% to 228.20.
Economic data and events scheduled today – What does the ECb news today mean for the market?
Eurozone
Day1- European Parliamentary Elections
At 11.30am- German Factory Orders m/m. Data is foreseen at 0.6%, previous -0.4%.
At 1.30pm- Italian Retail Sales m/m. Data is foreseen at 0.3% from previous 0.0%.
At 2.30pm- Retail Sales m/m. Data is foreseen at -0.2% from previous 0.8%.
At 5.45pm-
Main Refinancing Rate. Forecast 4.25% from previous 4.50%.
Monetary Policy Statement.
At 6.15pm-ECB Press Conference.
Above mentioned news today could have a volatile impact on the Euro.
Canada
At 6.00pm-Trade Balance. Data is foreseen at -1.2B from previous -2.3B.
Above mentioned news today and economic data could have a positive impact on the dollar.
US
At 6.00pm-
Unemployment Claims. Data is foreseen at 220K from previous 219k.
Revised Nonfarm Productivity q/q. Data is foreseen at 0.1% from previous 0.3%.
Revised Unit Labor Costs q/q. Data is foreseen at 4.8% from previous 4.7%.
Trade Balance. Data is foreseen at -76.2B from previous -69.4B.
At 8.00pm- Natural Gas Storage. Previous was at 84B. Forecast 89B.
Above mentioned news today and economic data could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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