Bank of Japan Gov Speak, US Jobless Claims data in Focus today. The U.S. dollar bounced from a one-week low on Wednesday..
FX Update
The U.S. dollar bounced from a one-week low on Wednesday, while the Japanese yen slid as safety haven demand faded and investors awaited more cues on U.S. President-elect Donald Trump’s proposed policies.
The previous day’s boost to the dollar and other traditional safe-haven currencies like the yen proved short-lived, after Russia’s foreign minister said the country would “do everything possible” to avoid the onset of nuclear war, hours after Moscow announced it would lower its threshold for a nuclear strike.
Crude Oil:
Oil was broadly stable as concerns about escalating hostilities in the Ukraine war potentially disrupting oil supply from Russia offset data showing rising U.S. crude stocks. The escalating war between major oil producer Russia and Ukraine has kept a floor under the market this week.
Gold:
Gold prices eased from a one-week high as the dollar strengthened, though safe-haven demand linked to Russia-Ukraine tensions helped cap further losses. The U.S. dollar rebounded after hitting a one-week low. A stronger U.S. currency makes bullion more expensive for overseas buyers. Althogh, geopolitical tention yet support from the lower level.
Copper:
Copper prices drifted higher, rising for a fourth session, as geopolitical concerns eased and after prices found technical support, but a stronger dollar capped gains.
Major Economic Data and Event s today
· UK annual rate of inflation to 2.3%, from September’s 1.7% rate, according to official figures.
The core rate, which excludes food and energy prices, rose 3.3%, versus 3.1% in September, while services inflation – one of the BoE’s areas of concern – rose 5%, compared with the prior month’s 4.9% increase.
·         China left benchmark lending rates unchanged at 3.10% and 3.60%  the monthly fixing on Wednesday, after lenders slashed the rates by higher-than-expected margins last month to revive economic activity.
Major Economic Data and Event scheduled today (UAE & Japan: Rising Powers in Asia’s Gold Demand Boom)
Japan
Tentative – BOJ Gov Ueda Speaks.
Above data could have a volatile impact on the Yen.
Australia
At 1.30pm- RBA Gov Bullock Speaks.
Above speech may have an volatile impact on the Dollar.
UK
At 12.30 pm- MPC Member Mann Speaks.
Above event could have a mixed impact on the Pound.
Eurozone
At 8.30pm- Consumer Confidence. Data is foreseen at 0.2% from previous -0.5%.
Above data could have a volatile impact on the Euro.
Canada
At 7.00pm-
IPPI m/m. Data is foreseen at 0.8% from previous 0.6%.
RMPI m/m. Data is foreseen at 2.6% from previous -3.1%.
Above data could have a positive impact on the dollar.
US
At 7.00pm-
Unemployment Claims. Data is foreseen at 220k from previous 217k.
Philly Fed Manufacturing Index. Data is foreseen at 7.4 from previous 10.3
At 7.15pm- FOMC Member Hammack Speaks.
At 8.30pm-
Existing Home Sales. Data is foreseen at 3.95M from previous 3.84M.
CB Leading Index m/m. Data is foreseen at -0.3% from previous -0.5%.
At 9.00pm- Natural gas storage
At 10.55pm- FOMC Member Goolsbee speaks.
11.00pm- FOMC Member Hammack Speaks.
Above data could have a volatile impact on the dollar.
Until then, Happy Trading!
Commodity Samachar Securities
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