The dollar index was off from four month low against the major counterparts yesterday prior to the Fed meeting minutes release. The currency has stopped its downward slide after minutes of the October 2023 Federal Reserve policy meeting indicated that the US central bank will likely remain on a tightening stance for some time to come.
According to the minutes, Fed officials acknowledged that inflation remains well above target, but said that interest rates will only need to rise if new information indicates a lack of progress in reducing price pressures.
Crude oil struggled after rallying for two sessions, with investors cautious ahead of Sunday’s scheduled OPEC+ meeting, when the producer group may discuss deepening supply cuts due to slowing global economic growth and also due to cues form the Fed Meeting minutes.
Bullions traded positive following the broadly weak dollar. Both precious metals touched its highest levels since May, amid growing expectations the Fed’s tightening campaign is over and that it could start cutting interest rates next year.
The dollar index which measures the currency against six major counterparts rebounded from the low 103.175 and settled up by 0.16%. MCX Gold futures settled at 61225, up 0.94%. Silver at 73304 up 0.91%. Copper prices settled at 717.20 down 0.06%. Crude oil settled at 6468 down 1.15%. Natural gas settled 238.70 down 1.30%
Economic data and Events Following the Fed Meeting Minutes:
Eurozone
At 2.30pm -ECB Financial Stability Review.
At 8.30pm-Consumer Confidence. Data is foreseen at -18 from previous -18.00.
At 9.30pm – German Buba President Nagel Speaks.
Above data could have a volatile impact on the Eur.
U.K.
At 4.30pm – CBI Industrial Order Expectations. Data is foreseen at -25 from previous -26.
Tentative – Autumn Forecast Statement.
Above data could have a neutral impact on the Pound.
Canada
At 10.00pm – BOC Gov Macklem Speaks.
Above data could have a negative impact on the Canadian dollar.
U.S.
Following the Fed meeting minutes release, these are data sets coming in from the USA.
At 8.30pm –
Revised UoM Consumer Sentiment. Data is foreseen at 61.10 from previous 60.40.
Revised UoM Inflation Expectations.
At 9.00pm – Crude Oil Inventories. Forecast N.A. Previous was at 3.6M.
At 10.30 pm – Natural Gas Storage. Forecast N.A. Previous was at 60B.
The above-mentioned data and Minutes have the potential to move the dollar.
Commodity Samachar
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