The U.S. dollar had a neutral trade and settled with a little change against a basket of major trading currencies. The U.S. dollar rose by 0.05% and settled at 102.9720.
The news that U.S. manufacturing had further declined in June to levels last seen when the economy was recovering from the first wave of the COVID-19 pandemic originally caused the dollar to decline.
The manufacturing PMI, according to the Institute for Supply Management (ISM), fell to 46.0 from 46.9 in May, marking the lowest figure since May 2020. It was the seventh month in a row that the PMI fell below the 50-point barrier, which indicates contraction.
Gold Prices recovered from the day’s low of 58480 and settled at 58227. Silver prices retreated from the day’s high of 70710 and settled at 70289.
Copper prices inched higher by 0.41%, and after hitting a day’s high 718.65 settled at 716.65.
Crude oil witnessed a more than half per cent fall yesterday. Prices retreated as worries about a slowing global economy and possible U.S. interest-rate hikes outweighed supply cuts. Top exporters Saudi Arabia and Russia announced for August. Saudi Arabi said yesterday that it would extend its voluntary cut of one million barrels per day (bpd) for another month to include August. The state news agency said MCX crude oil settled at 5753 down by 0.79%.
Economic data and events to watch
Australia Bank Decision
At 10.00 am – RBA Rate Statement and Cash Rate. The forecast is to be kept unchanged at 4.10%.
May have a neutral impact, but a rate hike will add some gain for the dollar.
Eurozone
At 11.30 am – German Trade Balance. Data is forecast to decrease by 17.3B from 18.4B previously.
At 12.30 pm – Spanish Unemployment Change. The forecast is to have a contraction of 63.5K from a contraction of 49.3 K.
CANADA
At 6.00 pm – Manufacturing PMI. Forecast N.A. The previous was 49.0.
Above data could have a volatile impact on the dollar.
U.S.
Bank Holiday. No major economic data is scheduled for today.