Jitters about U.S. Federal Reserve interest rate hikes have resulted in smart recovery in the dollar index yesterday. That added pressure in precious metal, crude oil prices and base metals also.
Gold prices retreated by 0.33%, testing day’s low 59653 before closing at 60288. Silver prices dipped to the day’s low of 73905, and settled with a smart recovery towards closing of 75472.
Copper prices fell by 0.31%, Aluminum settled almost flat, up 0.02%, ZINC down by 1.94% while Lead was able to stay in green by 0.14%.
Crude oil prices plunged nearly 1.98%, making a two-week low on Wednesday despite a sharp decline in U.S. crude inventories, on fears that looming U.S. Federal Reserve interest rate hikes could curb energy demand in the world’s top consumer.
Economic data and events to watch
Japan
At 10.00am – Tertiary Industry Activity m/m, foreseen at 0.4% from 0.9%.E
Eurozone.
At 11.30am – German PPI m/m. Data foreseen at -0.6% slightly lower from previous reading of 0.9%.
At 2.30pm – Trade Balance. Data is foreseen at -8.5B, recover lower from previous -11.3B
Tentative -ECB Monetary Policy Meeting Accounts
All above data expect to have a negative impact on Euro and Bullions.
Canada
At 9.00 pm – BOC Gov Macklem Speaks
All above speech expects to have a volatile impact on dollar and base metals.
US
At 6.00pm – Unemployment Claims, foreseen at 240K, slightly higher from previous 239K
Philly Fed Manufacturing Index, foreseen at -19.1 slightly recovers from previous-23.2.
At 7.00pm – Existing Home Sales, foreseen at 4.50M, lower from 4.58M previous reading.
CB Leading Index m/m, data is foreseen at -0.7% lower from -0.3% previous month.
Tentative – Treasury Sec Yellen Speaks and at 9.30pm – FOMC Member Waller Speaks
All above data expect to have a negative to volatile impact on the dollar.