Today is the day for the ECB and BOE Policy decision.
Global commodities experienced their best and worst daily performance yesterday. All commodities witnessed a speculative move as after the Federal Reserve’s commitment to keep raising interest rates dented the dollar and pushed up fears of a potential economic slowdown this year.
The greenback plunged below 101.10, from day’s high 102.1850 down 0.90%. Dollar pressured by anticipation of interest rate hikes by the European Central Bank and the Bank of England, which bolstered the euro and the pound. Both banks are expected to hike rates by 50 bps each and signal more incoming hikes as they move to contain high inflation. Meetings are due later today.
MCX Gold prices witnessed the biggest intraday gain since 20 December 2022, 1.22% and settled at 57885 compared to previous day’s close of 57190. Comex Gold future up by 1.14% to $1950.07 an ounce, recovered from day’s low $1920.65 an ounce.
MCX Crude oil plunged more than 2.80% and settled at 6281.New York-traded West Texas Intermediate, or WTI, crude for March settled down $2.46, or 3.1%, at $76.41 per barrel. The session low was $76.06. London-traded Brent crude for March delivery settled down $2.62, or 3%,at $82.84, after an intraday bottom at $82.39. U.S. crude inventories rose by 4.14M barrels during the week ended Jan. 27, the Energy Information Administration, or EIA, said in its Weekly Petroleum Status Report
Today, Economic calendar start at 9.05am with Japan 10-y Bond Auction
At 12.30pm – German Trade Balance to be released. Data is foreseen at 9.2B Vs previous 10.8B. Data could have a positive impact on Euro and Bullions.
At 1.30.pm – Spanish Unemployment Change could bring positive momentum for Euro. As data is foreseen at -15.2K vs. previous -43.7K.
At 5.30pm- European Central Bank’s (ECB) and at 6.45 pm Bank of England monetary decisions will bring clutter for Entire market.
The ECB and the Bank of England are both each expected to raise interest rates by 50 basis points .
At 7.00 – Canada Building Permits m/m are due to release. Data is foreseen -2.1 Vs 14.1%. Data could be positive for Metal.
At same time, US Unemployment Claims due to release. Data is foreseen at 196k Vs previous 186K. Data may have a negative impact on Dollar.
At 8.30pm – US Factory Orders m/m will bring positive sentiment for the dollar. Data foreseen slightly higher at 2.3% from previous -1.8%.
Evening session data could be supportive for Bullion as the Dollar index may show weakness, Based on foreseen data.