RBA Bullock Speech and the FED member’s speeches are most awaited today. So what’s the other news gracing the market?
The dollar rose to a three-month high against nine other major currencies on Monday as traders made discount bets that the Federal Reserve will cut interest rates aggressively this year after fresh economic data further reduced those odds.
Growth in the US services sector accelerated in January as new orders rose and employment rebounded, the Institute for Supply Management (ISM) said, suggesting that growth from the fourth quarter carried over into the new year.
ISM non-manufacturing PMI rose to 53.4 from 50.5 in December, higher than the 52.0 forecast of economists polled by Reuters. A reading above 50 indicates growth in the service sector, which drives more than two-thirds of the economy.
Crude oil prices were unchanged early Tuesday as market participants priced in the visit of US Secretary of State Antony Blinken to the Middle East to discuss a cease-fire offer in the region.
Blinken met with Saudi Arabia and the de facto ruler on Monday. Palestinians hope the visit will lead to a truce ahead of an imminent Israeli attack on Rafah, the border town that is home to about half the population of the Gaza Strip.
Bullions fell sharply yesterday as the prospect of higher interest rates in the long term signaled more immediate pressure. Copper prices continued to fall due to strong dollar pressure and pessimistic industrial sentiment in top consumer China. In addition, continued macroeconomic headwinds from the Chinese economy further weakened the outlook for base metals.
MCX gold futures down 0.39% to 62316. Silver settled down -1.02% at 70480. Copper down 0.84% to 715.95. Crude oil up 0.85% at 6081. Natural gas down 0.91% to 174.2.
Economic data and events scheduled – Will RBA Bullock speech take over?
Bank of Australia
At 9.00am –
Cash Rate, expect to hold unchanged at 4.35%.
RBA Rate and RBA Monetary Policy Statement.
At 10.00am – RBA Press Conference.
RBA Bullock speech, Policy statement and Press conference may have volatile impact on the dollar.
UK
At 3.00pm-Construction PMI. Data is foreseen at 47.2 from previous 46.8.
Above data could have a mixed impact on the pound.
Eurozone
At 12.30pm- German Factory Orders m/m. Data is foreseen at -0.1% from previous 0.3%.
At 3.30pm- Retail Sales m/m. Data is foreseen at -0.9% from previous -0.3%.
All above data could have a volatile impact on the Euro.
Canada
At 7.00pm- Building Permits m/m. Data is foreseen at 1.8% from previous -3.9%.
At 8.30pm- Ivey PMI. Data is foreseen at 55.00 from previous 56.3.
At 11.15pm- BOC Gov Macklem Speaks.
Above data could have a mixed impact on the Canadian dollar.
US
Tentative – RCM/TIPP Economic Optimism
At 10.30pm- FOMC Member Mester Speaks.
Above data could have a Volatile impact on the dollar.
Commodity Samachar
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Also Read: China Inflation, Fed Members Talk Drives Volatility This Week , Dollar Index Breaks Resistance – Expects Further Rise
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