Today, the spotlight is focused on the release of UK inflation data.
Dollar Index
The U.S. dollar strengthened against most major currencies on Tuesday, traded at 103.22, resuming the latest uptrend that took it to more than two-month highs fueled by expectations the Federal Reserve will proceed with modest interest rate cuts over the next year and a half.
Crude Oil:
Crude Oil prices tumbled more than 4% to a near two-week low on Tuesday due to a weaker demand outlook and after a media report said Israel would not strike Iranian nuclear and oil sites, easing fears of a supply disruption.
Gold:
Gold edged higher nearly half percent lifted by retreating Treasury yields, while investors cautiously awaited more data that could offer fresh clues on the Federal Reserve’s monetary easing cycle. Markets’ attention will be on upcoming U.S. retail sales, industrial production data, and weekly jobless claims due later this week.
Copper:
Copper prices sank to a three-week low on Tuesday, pressured by confusion about the scale of stimulus measures in top metals consumer China and geopolitical uncertainty. Copper pared losses due to buying from arbitrage traders and industrial consumers, a trader said. Copper and other base metals rallied last month after China announced what seemed to be a massive plan to revive its ailing economy, but since then, officials have failed to provide much detail.
Prices action (MCX)
Gold 76360 (+0.41%), Silver 91623 (+0.98%), Copper 817.15(-1.00%) Crude Oil 5923 (-5.16%) Natural gas 211.60 (0.33%)
Yesterday Data and Event Update –
· Eurozone’s Industrial output in the old continent rose by 1.8% MoM, compared to the expected increase of 1.8% and a -0.5% print in July.
· Eurozone Industrial Production increased at an annual rate of 0.1% in August versus July’s -2.1%. The market consensus was for -1.0%.
· The headline German ZEW Economic Sentiment Index improved to 13.1 in October from 3.6 reported in September, beating the market consensus of 10.0.
· The Eurozone ZEW Economic Sentiment Index came in at 20.1 in October versus the September figure of 9.3. The market forecast was 16.9.
· UK ILO Unemployment Rate declined to 4% in the three months to August, with Employment Change rising 373K, but failed to deter Pound Sterling.
Major Economic Data and Event scheduled today – UK inflation data
Japan
At 5.20am- Core Machinery Orders m/m. Data is foreseen at -0.1% from previous -0.1%.
Above data could have a neutral impact on the Yen.
UK
At 11.30am—
CPI y/y. Data is foreseen at 1.9% from previous 2.2%.
Core CPI y/y. Data is foreseen at 3.4% from previous 3.6%.
PPI Input m/m. Data is foreseen at -0.5% from previous -0.5%.
PPI Output m/m. Data is foreseen at -0.3% from previous -0.3%.
RPI y/y. Data is foreseen at 3.1% from previous 3.5%.
Above data could have a positive impact on the pound.
Canada
At 5.45pm— Housing Starts. Data is foreseen at 235k from previous 217k.
At 6.00am- Manufacturing Sales m/m. Data is foreseen at -1.5% from previous 1.4%
Above data could have a volatile impact on the dollar.
US
At 6.00pm- Import Prices m/m. Data is foreseen at -0.3% from previous -0.3%.
Above data could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar Securities
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