U.S. Prelim GDP q/q will be key focus today

Prelim GDP Will be Key Focus Today

Dollar remained at a two-month high yesterday. As a resilient U.S. economy helped to bolster the currency, unease over debt ceiling talks in Washington kept investor flows moving to safe havens.

Dollar index settled at 103.76.10, up by 0.24%, while USDINR retreated by 0.21%, the biggest single-day low since 26 April 2023 and settled at 82.6360.

As long as inflation is above trend, Federal Reserve members “generally agreed” that future rate hikes were less certain and preferred to keep policy flexible. According to the Fed minutes from its meeting on May 2-3, the effects of the banking crisis are still unknown.

Gold prices settled at 59860, down 0.56%. Prices retreated from the day’s high 60389. Silver settled at 71086, down by 1.49%, the lowest level after 3 April 2023.

Base metals continued their fall yesterday also. Copper prices were near their weakest level since late November. This week, multiple reports on manufacturing activity that was weaker than anticipated hit it hard. Copper plunged to a new multi-week low of 692.95 and settled at 693.55, down by 4.23%. Zinc prices fell by 3.59%, and settled at 207.05.

Yesterday, crude oil prices rose to a day high after U.S. government data revealed the largest weekly crude drawdown in six months, before losing some of their gains due to ongoing worries about the nation’s debt crisis and a potential rate hike in July—if there isn’t a pause next month.

The U.S. crude inventory balance fell by 12.456 million barrels during the week ended May 19, the Energy Information Administration, or EIA, said in its Weekly Petroleum Status Report.

Brent crude futures were up by 0.74% to $78.03 a barrel. U.S. West Texas Intermediate crude was at $74.11 a barrel, up 0.54%. MCX crude oil rose by 0.31% and settled at 6111.

Economic data and events to watch


At 3.30 pm- CBI Realized Sales to be released. Data is foreseen at 10.00, higher than the 5.00 previous reading.

All the above data may have a positive impact on Pound.


At 11.30 pm – the German Final GDP q/q is to be released. Data is foreseen at 0.0, unchanged from the previous.

At 4.00 pm – German Buba President Nagel Speaks.

The above data is expected to have a negative impact on the Euro.


At 6.00 pm- The market will react on Prelim GDP q/q. Data is foreseen at 1.1%, unchanged from the previous reading.

Unemployment Claims, data is foreseen at 249K, slightly lower from 242k.

At 7.30 pm – Pending Home Sales m/m, data is foreseen at 1.0%, higher compared to a contraction of 5.2%.

8.00 pm – Natural Gas Storage. The above data expect to have a positive impact on the dollar.