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U S. Core PCE & Europe Inflation. What will be the focus today?


U.S dollar weakens to a two-week low against a basket of currencies. The currency retreated after data showed that U.S. private payrolls rose less than expected in August, adding to expectations that the Federal Reserve would stop raising interest rates.

The euro was last up 0.38% at $1.0921. It has bounced from $1.07655 on Friday, the lowest since June 13.

The single currency was boosted by hotter-than-expected inflation in Germany, a day before highly anticipated consumer price data for the euro zone.

German consumer prices increased by an annual 6.4% in August, down from a reading of 6.5% in July but above the 6.3% forecast in a poll of economists surveyed by Reuters.

Spain’s consumer prices also rose to 2.6%, while core inflation fell to 6.1% from 6.2% in July.

ADP National Employment report on Wednesday showed that private payrolls increased by 177,000 jobs during the month, after a downwardly revised 312,000 in July. Economists had called for 195,000.

Bullions and base metals prices firmed from the day’s high as a fresh set of soft U.S. economic data added to expectations that the Federal Reserve will pause rake hikes this year.

Crude oil was able to rebound from the day’s low supported by tighter U.S. supply, with a focus on China factory activity due later in the day amid recent weak economic expansion data in the world’s second-biggest economy.

MCX Gold futures settled at 59478, up 0.36%, Silver at 76280 up 2.14%. Copper prices settled at 737.95 up 0.12%. Crude oil settled at 6735, up 0.46%. Natural gas settled at 228.50, up 4.29%.

Economic data and events scheduled today

Japan

At 10.30am – Housing Starts y/y. Data is foreseen at -1.3% from -4.8%.

Above data could have a positive impact on the Yen.

Eurozone

At 11.30pm – German Retail Sales m/m. Data is foreseen at 0.3% from -0.80%.

At 12.15pm –

French Consumer Spending m/m. Data is foreseen at 0.3% from 0.9%.

French Prelim CPI m/m. Data is foreseen at 0.7% from 0.1%.

French Prelim GDP q/q. Data is foreseen at 0.5% unchanged from previous 0.5%.

At 1.25pm – German Unemployment Change. Data is foreseen at 10k from -4k.

At 1.30pm – Italian Monthly Unemployment Rate. Data is foreseen at 7.4% from 7.4%.

At 2.30pm –

Core CPI Flash Estimate y/y. Data is foreseen at 5.3% from 5.5%.

CPI Flash Estimate y/y. Data is foreseen at 5.1% from 5.3%.

Italian Prelim CPI m/m. Data is foreseen at 0.1% from 0.0%.

Unemployment Rate. Data is foreseen at 6.4% from 6.4%.

Tentative – EU Economic Forecasts.

At 5.00pm – ECB Monetary Policy Meeting Accounts.

Above data could have a volatile impact on the Euro.

U.K.

At 12.45pm – MPC Member Pill Speaks.

Above data could have a volatile impact on the Pound.

Canada

At 6.00pm – Current Account. Data is foreseen at -11.1B from -6.2B

Above data could have a negative impact on the dollar.

U.S.

At 6.00pm –

Core PCE Price Index m/m. Forecast is 0.2% from 0.2% .

Unemployment Claims. Forecast is 236k from 230k.

Personal Income m/m. Forecast is 0.3% from 0.3%.

Personal Spending m/m. Forecast is 0.7% from 0.5%.

At 7.15pm- Chicago PMI. Forecast is 44.3 from 42.80.

At 8.00pm – Natural Gas Storage. Forecast 20B from 18B. All above data could have a volatile impact on the dollar