Today’s economic news looks quite interesting
FX Update
The Indian rupee settled at a record closing low for a third consecutive session on Thursday, pressured by a firm dollar and importers’ month-end dollar demand. The rupee INR=IN ended at 85.2625 to the dollar, against 85.20 in the previous session. It hit an all-time low of 85.2825 earlier in the session.
Since slipping below the 84 handle in mid-October, the rupee has been falling gradually amid concerns over India’s growth slowdown, foreign outflows, worries over U.S. President-elect Donald Trump’s trade policies and a hawkish Federal Reserve.
Persistent interventions from the Reserve Bank of India (RBI) have, however, kept the rupee’s decline in check.
Crude Oil:
Oil edged almost flat in thin holiday trade driven by hopes for additional fiscal stimulus in China, the world’s biggest oil importer, and supported by an industry report showing a decline in U.S. crude inventories. Chinese authorities have agreed to issue 3 trillion yuan ($411 billion) worth of special treasury bonds next year, Reuters reported on Tuesday, citing two sources, as Beijing ramps up fiscal stimulus to revive a faltering economy.
Gold:
Gold rose in light holiday trading, boosted by safe-haven demand due to geopolitical tensions, with investors eying the Federal Reserve’s 2025 rate strategy and Donald Trump’s tariff policies, which could shape the outlook for the metal.
Copper
Most base metals on the Shanghai Futures Exchange (SHFE) edged up, buoyed by positive macroeconomic news from the Chinese government. China plans to boost fiscal support for consumption next year by increasing pensions and medical insurance subsidies for residents, and expanding trade-ins for consumer goods, according to a finance ministry announcement on Tuesday..
MCX Closing Update
Gold 76,827 (0.77%), Silver 89,636 (0.31%), Crude oil 5,976 (0.08%), Copper 807.05 (0.67%), Natural Gas 317.50 (-5.03%).
Economic News, Data and Event scheduled today
Japan
At 5.00am-
Tokyo Core CPI y/y. Data is foreseen at 2.5% from previous 2.2%.
Unemployment Rate. Data is foreseen at 2.5% from previous 2.5%.
At 5.20am-
BOJ Summary of Opinions.
Prelim Industrial Production m/m. Data is foreseen at -3.4% from previous 2.8%.
Retail Sales y/y. Data is foreseen at 1.5% from previous 1.3%.
At 10.30am- Housing Starts y/y. Data is foreseen at -0.1% from previous -2.9%.
Above mentioned economic news and data could have a volatile impact on the Yen.
UK
BOE Quarterly Bulletin.
US
At 7.00pm-
Goods Trade Balance. Data is foreseen at -101.3B from previous -98.3B.
Prelim Wholesale Inventories m/m. Data is foreseen at 0.1% from previous 0.2%.
At 9.00pm- Natural Gas Storage.
At 11.30pm- Crude Oil Inventories
Above mentioned economic news and data could have a mixed impact on the dollar.
Until then, Happy Trading!
Commodity Samachar Securities
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