The PMI data is set to take over the market as US, Eurozone and the UK have a lot of data instore for traders.
The dollar jumped near one-week highs against its major peers on Thursday minutes after the Federal Reserve’s latest meeting indicated some officials were ready to raise interest rates. The pound rose as inflation fell less than expected in April.
According to the minutes of the April 30-May 1 meeting of the US Federal Reserve, it will take longer than expected for the inflation rate to rise to 2 percent.
Recent data suggests that US inflation has eased again, but several Federal Reserve policymakers have been cautious about cutting interest rates too soon, but have ruled out the need for a hike.
The pound held firm after rising to a one-month high on warmer-than-expected inflation, supported by the announcement of Britain’s July 4 general election.
The pound gathered support after the UK. inflation fell less than expected in April, making a BoE cut next month less likely.
Consumer prices rose 2.3% year-on-year, down sharply from a 3.2% increase in March and to the lowest level since July 2021, when they were 2.0%, the statistics office said. But still above the predicted 2.1%.
Gold fell more than 1% on Wednesday as the gold rally cooled as investors awaited growth as attention shifted to minutes from the central bank’s recent policy meeting to provide more clarity on the central bank’s stance.
Crude oil prices fell to 1-week lows and are moderately lower. The strength in the dollar index DXY to a 1-week high is negative for energy prices. Crude prices maintained moderate losses after today’s weekly EIA report showed crude supplies unexpectedly rose last week.
Copper dropped significantly, as poor demand in the near term weighed against speculative bets that triggered a broad-based surge in base metals this month. Import demand in China, the world’s top copper consumer, remained at extremely low levels despite tight ore supply and low treatment volumes in the country’s huge refining industry.
MCX gold futures settled -1.32% to 73046.Silver settled -1.81% to 93013. Copper settled -4.17% to 896.15. Crude oil -1.16% at 6492. Natural gas +4.74% to 234.2.
Economic data and events scheduled- Will PMI data take over market moves?
Eurozone
At 12.45pm –
French Flash Manufacturing PMI. Data is foreseen at 45.8 from previous 45.3.
French Flash Services PMI. Data is foreseen at 51.8 from previous 51.3.
At 1.00pm –
German Flash Manufacturing PMI. Data is foreseen at 43.4 from previous 42.5.
German Flash Services PMI. Data is foreseen at 53.5 from previous 53.2.
At 1.30pm –
Flash Manufacturing PMI. Data is foreseen at 45.2 from previous 45.7.
Flash Services PMI. Data is foreseen at 53.6 from previous 53.3.
Above data could have a volatile impact on the Euro.
UK
At 2.00pm –
Flash Manufacturing PMI. Data is foreseen at 49.5 from previous 49.1.
Flash Services PMI. Data is foreseen at 54.7 from previous 55.00.
At 5.00pm- MPC Member Pill Speaks.
Above data could have a volatile impact on the pound.
Canada
At 6.00pm- NHPI m/m. Data is foreseen at 0.1% from previous 0.0%.
Above data could have a neutral impact on the dollar.
US
At 6.00pm- Unemployment Claims. Data is foreseen at 220k from previous 222k.
At 7.15pm-
Flash Manufacturing PMI. Data is foreseen at 50.0 from previous 50.00.
Flash Services PMI. Data is foreseen at 51.2 from previous 51.3.
At 7.30pm- New Home Sale. Data is foreseen at 677k from previous 693k.
At 8.00pm- Natural Gas Storage. Data is foreseen at 84B from previous 70B.
Above data could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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