The dollar gained for the second day, as Euro weakness after a soft euro inflation report also partly helped boost the greenback as there is the anticipation brewing before the fed speech today .
The currency gained 0.66% to 103.519 compared to the previous day’s close of 102.8430. Every month, the dollar has posted a 3% loss, on pace for its worst monthly showing in a year.
India’s economy expanded by 7.6% in the September quarter, much better than the 6.8% expected by economists polled by Reuters
In the United States, consumption increased modestly in October, while annual inflation was the lowest in more than 2-1/2 years.
The Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s (Fed) favourite inflation gauge, was up 0.2% MoM and the anticipation for the Fed speech today by Jerome Powell is higher than ever. .
Consumer price growth in the 20 countries where the euro is used slowed to 2.4 per cent in November from 2.9 per cent in October, well below expectations of 2.7 per cent.
Crude oil dropped as the OPEC+ cut supply by a smaller-than-expected margin, while weak data from China added to concerns over worsening demand.
The Organization of Petroleum Exporting Countries and Allies (OPEC+) said on Thursday it will cut production by an additional 2.2 million barrels per day (bpd) in the first quarter of 2024.
However, the new production cuts were voluntary and came amid some disagreements among OPEC+ members over reductions in output. They also disappointed traders who had hoped for more supplies from the cartel due to the recent drop in oil prices.
Bullions extended their gain after data showing cooling inflation cemented bets for a rate cut in the U.S., with traders now looking forward to comments from Federal Reserve’s Chair Powell Fed speech today which is scheduled for later in the day.
MCX Gold future settled at 62640 up 0.06%. Silver at 77515 up 0.31%. Copper prices settled at 722 up 0.33%. Crude oil settled at 6401 down 1.25%. Natural gas settled 234.90 down 0.59%.
Economic data and events scheduled – Will Fed Speech today take over market movements?
Eurozone
At 1.15 pm – French Gov Budget Balance. Previous was at -186.1B.
At 1.45 pm – Spanish Manufacturing PMI. Data is foreseen at 45.6 from the previous 45.1.
At 2.15 pm – Italian Manufacturing PMI. Data is foreseen at 45.3 from the previous 44.9.
At 2.20 pm- French Final Manufacturing PMI. Data is foreseen at 42.6 from the previous 42.6.
At 2.25 pm- German Final Manufacturing PMI. Data is foreseen at 42.3 from the previous 42.3.
At 2.30 pm – Final Manufacturing PMI. Data is foreseen at 43.8 from the previous 43.8.
At 5.00 pm – ECB President Lagarde Speaks.
The above data could have a negative impact on the Eur.
UK
At 12.30 pm – Nationwide HPI m/m. Data is foreseen at -0.4% from the previous 0.9%.
At 3.00 pm – Final Manufacturing PMI. Data is foreseen at 46.7 from the previous 46.7.
The above data could have a negative impact on the pound.
Canada
At 7.00 pm –
Employment Change. Data is foreseen at 14.2k from the previous 17.5k.
Unemployment Rate. Data is foreseen at 5.8% from the previous 5.7%.
At 8.00 pm – Manufacturing PMI. The previous was at 48.6.
The above data could have a neutral impact on the Canadian dollar.
U.S.
At 8.15 pm- Final Manufacturing PMI. Data is foreseen at 49.4 from the previous 49.4.
At 7.00 pm-
ISM Manufacturing PMI. Data is foreseen at 47.9 from the previous 46.7.
ISM Manufacturing Prices. Data is foreseen at 46.1 from the previous 45.1.
Construction Spending m/m. Data is foreseen at 0.4% from the previous 0.4%.
FOMC Member Goolsbee Speaks.
All day – Wards Total Vehicle Sales. Data is foreseen at 15.5M from the previous 15.5M.
At 7.45 pm- FOMC Member Williams Speaks.
At 9.30 PM- Fed Chair Powell Speaks.
The above information may have a negative or volatile effect on the dollar.
Commodity Samachar
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Also Read : Crude Oil : What Lies Ahead on the OPEC Meeting Horizon? , Is Crude Gearing Up for Turbulence Ahead of the OPEC Meeting?
Recommended Read : Changing Perspectives: Are The Lives Of US Citizens A Priority Now Over Controlling Inflation After Fed Minutes?
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