U.S dollar weakens significantly after data showed that U.S. job openings, a measure of labor demand, dropped in July. Smoothness in the labor market could encourage the Federal Reserve to slow down interest rate hikes.
The yield on the 10-year Treasury note eased to 4.11%, while that on the two-year note fell back below 5% after hovering around that level for the past few sessions.
The greenback hit 103.411 against its basket of currencies, down 0.55%.
Bullions and base metals prices jump sharply following the release of United States (US) macroeconomic figures suggesting the end of the monetary tightening cycle.
The number of job openings on the last business day of July stood at 8.82 million, well below the previous 9.16 and below the 9.46 million expected
Consumer Confidence contracted to 106.1 in August from 114.0 in July, according to the Conference Board (CB) estimate, suggesting cooling household demand
Oil prices edged higher on Tuesday as the dollar slid, while investors debated the potential impact to energy supply and demand from Hurricane Idalia set to hit Florida this week.
MCX Gold futures settled at 59266, up 0.64%, Silver at 74685, up 1.46%. Copper prices settled at 737.10 up 0.61%. Crude oil settled at 6704, up 1.30%. Natural gas settled at 219.10, up 3.74%.
Economic data and events scheduled today
Japan
At 10.30am – Consumer Confidence. Data is foreseen at 37.5 from 37.10.
Above data could have a positive impact on the Yen.
Eurozone
At 11.30pm – German Import Prices m/m. Data is foreseen at -0.3% from -1.6%.
Tentative- German Prelim CPI m/m. Data is foreseen at 0.3% from 0.3%.
At 12.30pm- Spanish Flash CPI y/y. Data is foreseen at 2.5% from 2.3%.
Above data could have a neutral impact on the Euro.
U.K.
At 2.00pm – M4 Money Supply m/m. Data is foreseen at 0.1% from -0.1%.
At 2.00pm- Mortgage Approvals. Data is foreseen at 51K from 55K.
Above data could have a positive impact on the Pound.
U.S.
At 5.45pm- ADP Non-Farm Employment Change. Data is foreseen at 194k from the previous 324k.
At 6.00pm –
Prelim GDP q/q. Forecast is 2.4% from 2.4%.
Goods Trade Balance. Forecast is -90.0B from -87.8B.
Prelim Wholesale Inventories m/m. Forecast is 0.2% from -0.5%.
At 7.30pm- Pending Home Sales m/m. Forecast is -0.8% from 0.3%.
At 8.00pm – Crude Oil Inventories. Forecast -2.2M from -6.1M.
All above data could have a volatile impact on the dollar.