The dollar weakened as a sharper-than-expected fall in US manufacturing supported the Fed rate cut. However, the currency fell to near 105.9 on Tuesday after falling to 105.43, supported by strong Treasury yields, which analysts attributed to increased government borrowing during a possible second term for Donald Trump.
In addition, the euro rose after France’s far-right landslide and historic victory in the first round of parliamentary elections missed expectations, leaving the final outcome dependent on party deals ahead of next weekend’s runoff.
Meanwhile, the yen fell to a new 38-year low after data showed Japan’s economy shrank more than initially reported in the first quarter, and traders awaited signs of intervention to support the currency.
Gold prices edged higher as a lower dollar prompted some short covering from investors with focus turning to U.S. jobs data due later this week that could offer more cues around interest rate cuts by the Federal Reserve.
Copper prices firmed on Monday due to support from a weaker dollar and some stronger data from China’s manufacturing sector, but worries about demand in the top consumer fueled by climbing inventories capped gains.
Crude Oil prices jumped over two percent. The prices touched a two-month high on hopes of rising demand during the Northern Hemisphere’s summer driving season and worries that conflict in the Middle East could spread and reduce global oil supplies.
MCX gold futures settled 0.10% to 71654.Silver settled +0.41% to 87583.Copper settled 0.62% to 845.75. Crude oil 2.13% at 6950. Natural gas -3.81% to 209.5.
Economic data and events scheduled today -Fed & Eurozone
Economic data and events scheduled today.
Eurozone
At 12.30pm – Spanish Unemployment Change. Data is foreseen at -50.9K from previous -58.7K.
At 1.30pm- Italian Monthly Unemployment Rate. Data is foreseen at 6.9% from previous 6.9%.
At 2.30pm-
Core CPI Flash Estimate y/y. Data is foreseen at 2.8% from previous 2.9%.
CPI Flash Estimate y/y. Data is foreseen at 2.5% from previous 2.6%.
Unemployment Rate. Data is foreseen at 6.4% from previous 6.4%.
At 7.30pm- ECB President Lagarde Speaks.
Above data could have a volatile impact on the Euro.
CANADA
At 7.00pm- Manufacturing PMI. Previous was at 49.3.
Above data could have a neutral impact on the pound.
US
At 7.00pm- Fed Chair Powell Speaks.
At 7.30pm- JOLTS Job Openings. Data is foreseen at 7.96M from previous 8.06M.
Tentative – RCM/TIPP Economic Optimism. Data is foreseen at 41.2 from previous 40.5.
All day- Wards Total Vehicle Sales. Data is foreseen at 15.9M from previous 15.9M.
Above data could have a volatile on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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