The dollar weakened against the euro and yen on Wednesday after the Fed said in new economic forecasts that US interest rate hikes are over and borrowing costs will fall in 2024.
The Fed left interest rates unchanged at 5.50%, in its third meeting broadly as expected. And the base rate is expected to be lower by the end of 2024, with the median forecast calling for a rate cut of three-quarters of a percentage point from the current range of 5.25% to 5.50%.
Crude oil rebounded from recent lows after data from the EIA showed that US crude inventories fell for a second week in a row. US inventories were cut by 4.3 million barrels last week. However, he withdrew again according to Fed policy.
Gold rose to a weekly high on Thursday after the US Federal Reserve signaled the end of its tightening cycle and signalled a reduction in borrowing costs in 2024, sending the dollar and Treasuries lower.
The US dollar index fell to 102.89, down 0.83% on the day and the lowest level since November 30. The euro rose 0.80% to $1.0882 and $1.08970, the highest since December 1. The greenback fell 1.67% to 143.03 Japanese yen, its lowest since December 8.
MCX gold futures at 61604 rose 0.17%. Silver decreased by 0.44% at 72677. The price of copper reached 713.71, increasing by 0.07%. The price of crude oil fell to 5,781, down 3.15%. Natural gas fell 195.80 1.50%.
Economic data and events scheduled today- What’s the Focus After Fed?
Swiss Bank Rate decision
At 2.00pm-
SNB Monetary Policy Assessment.
SNB Policy Rate. Forecast 1.75% from previous 1.75%.
At 2.30pm – SNB Press Conference.
Above event could have a volatile impact on the dollar.
Eurozone
At 6.45pm-
Main Refinancing Rate. Data is foreseen at 4.5% from previous 4.5%.
Monetary Policy Statement.
At 7.15pm- ECB Press Conference
Above data could have a volatile impact on the Eur.
UK
At 5.30pm-
Monetary Policy Summary.
MPC Official Bank Rate Votes. Data is foreseen at 2-0-7 from previous 3-0-6..
Official Bank Rate. Data is foreseen at 5.25% from previous 5.25%.
Above data could have a volatile impact on the Eur.
Canada
At 7.00pm- Manufacturing Sales m/m. Data is foreseen at -2.1% from previous 0.4%.
Above data could have a negative impact on the Canadian dollar.
U.S.
At 7.00pm –
Core Retail Sales m/m. Data is foreseen at -0.1% from previous 0.1%.
Retail Sales m/m. Data is foreseen at -0.1% from previous -0.1%.
Unemployment Claims. Data is foreseen at 219k from previous 220k.
At 8.30pm- Business Inventories m/m. Data is foreseen at 0.0% from previous 0.4%.
At 9.00pm- Natural Gas Storage. Foreseen at -60B from previous -117B.
Above data and event could have a volatile impact on the dollar.
Commodity Samachar
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Also Read: All Roads Lead to the US: What’s the Future of the US leading up to the Fed meeting? , Crude Oil News: Price Hit Five Months Low- How Will The Fed Impact Inventory?
Recommended Read: Forex News Letter – The FOMC Meeting Frenzy Begins!!
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