The U.S. dollar was able to gain against its major counterparts as U.S. readings showed an indecisive picture of the economy, while the euro slumped on cautious comments by a leading European Central Bank hawk.
U.S. consumer spending accelerated in July with a 0.8% increase, but slowing inflation strengthened expectations that the Federal Reserve would keep interest rates unchanged next month.
The personal consumption expenditures (PCE) price index rose 0.2% last month, matching June’s gain.
Gold prices retreated from a three-week high as weak economic readings from the U.S. fueled more bets that the Federal Reserve had little headroom to keep raising interest rates. Copper had a range-bound trade tracking weak economic signals from the world’s largest copper importer.
Crude oil prices retreated from highs hit earlier as data showed rises in production in OPEC+ countries despite a planned production cut of 1 million barrels per day (bpd).
MCX Gold futures settled at 59374, up 0.17%, and Silver at 75682 up 0.78%. Copper prices settled at 735.60 down 0.32%. Crude oil settled at 6871, up 2.02%. Natural gas settled at 731.60 up 1.36%.
The euro was last down 0.71% at $1.0845. It is maintaining above the $1.07655 mark, which was the lowest since June 13 and was reached on Friday. The dollar index gained at 103.600, up 0.41%.
Economic data and events scheduled today
Eurozone
At 12.15 pm – French Gov Budget Balance. Previous was at -116.2B.
At 12.45 pm – Spanish Manufacturing PMI. Data is foreseen at 47.8, unchanged from the previous.
At 1.15 p.m.- Italian Manufacturing PMI. Data is foreseen at 44.00 from 44.50.a
At 1.20 pm – French Final Manufacturing PMI. Data is foreseen at 46.4 unchanged from the previous 46.4
At 1.25 pm – German Final Manufacturing PMI. Data is foreseen at 39.1 unchanged from the previous 39.1.
At 1.30 pm – Final Manufacturing PMI. Data is foreseen at 43.70 unchanged from the previous 43.70.
All the above data could have a neutral impact on the Euro.
U.K.
At 11.3am – Nationwide HPI m/m. Foreseen at -0.3% from the previous -0.20%.
At 2.00 p.m.- Final Manufacturing PMI. Data is foreseen at 42.50 unchanged from the previous 42.50.
At 3.30 pm – MPC Member Pill Speaks.
All the above data could have a neutral impact on the Pound.
Canada
At 6.00 pm – GDP m/m. Data is foreseen at -0.2% from 0.3%.
At 7.00 pm – Manufacturing PMI. The previous was at 49.6.
The above data could have a negative impact on the dollar.
U.S.
At 6.00 pm –
Average Hourly Earnings m/m. The forecast is 0.3% from 0.4%.
Non-Farm Employment Change. The forecast is 169k from 187k.
Unemployment Rate. The forecast is 3.5% unchanged from 3.5%.
At 7.30pm-Final Manufacturing PMI. The forecast is 47.00 unchanged from the previous 47.00.
At 7.30 pm- ISM Manufacturing PMI. The forecast is 46.90 from 46.40.
ISM Manufacturing Prices. Data is foreseen at 43.90 from the previous 42.60.
Construction Spending m/m. The forecast is 0.5% unchanged from the previous 0.5%.
All the above data could have a volatile impact on the dollar.