The dollar weakened on Thursday as stock markets hit record highs, fueling optimism across all asset classes and traders digesting a set of better-than-expected business surveys looking for an impact on interest rates.
Purchasing managers’ index (PMI) data showed. the euro zone’s trade deficit eased in February while the dominant services sector contracted in six months, which offset a decline in manufacturing.
The euro was last up 0.3% at $1.0851, having climbed more than 0.5% to its highest level in nearly a year. three weeks after stronger-than-expected data from France but retreated after disappointing German data.
Gold prices rose on Thursday, supported by demand for safety amid rising geopolitical tensions in the Middle East and a weaker dollar after minutes from the US. The latest Federal Reserve meeting on hopes for an early rate cut
Copper futures rose above $3.85 a pound to a three-week high in February on a weaker U.S. dollar and hopes that economic support from China will boost industrial activity and demand at inputs.
Besides pressuring the dollar used to price copper futures, thus increasing the purchasing power of foreign consumers, hopes of looser monetary policy in the US lifted industrial sentiment for economies exposed to US credit markets and supported the outlook for base metals.
Crude Oil futures rose on Thursday as attacks continued on shipping in the Red Sea near Yemen but a large build in U.S. crude inventories curbed gains.
U.S. crude inventories rose by 3.5 million barrels to 442.9 million barrels in the week ending Feb. 16, the U.S. Energy Information Administration said on Thursday, compared with analysts’ expectations in a Reuters poll for a 3.9-million-barrel rise.
U.S. crude inventories have climbed amid outages at large refineries that have left utilization rates at the lowest level in two years, though the plants are soon to resume output.
MCX gold futures settled -0.11% to 61977. Silver settled -0.48% at 70269. Copper settled +0.03% to 726.75. Crude oil +1.36% at 6535. Natural gas -4.43% to 149.2.
Economic data and events scheduled today.
China
7.00am – New Home Prices m/m. Previous was at -0.45%.
Above data could have a neutral impact on the Yuan.
Eurozone
At 12.30pm- German Final GDP q/q. Data is foreseen at -0.3% from previous at -0.3%.
At 2.30pm-German ifo Business Climate. Data is foreseen at 85.5 from previous at 85.2.
At 3.30pm- German Buba President Nagel Speaks.
Day 2 – ECOFIN Meetings.
All day – Eurogroup Meetings
At 7.30pm- Eurogroup Meetings. Data is foreseen at -16.00 from previous at -16.4.
Above data could have a volatile impact on the Euro.
UK
At 1.30pm-MPC Member Greene Speaks.
Above data could have a neutral impact on the Pound.
Canada
At 7.00pm- Corporate Profits q/q. Previous was at 4.7%.
Above data could have a neutral impact on the Canadian dollar.
Commodity Samachar
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Also Read: Purchasing Managers Index : Game Changer for Eurozone, UK, and US? , Copper shows significant improvement. Will it continue?
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