The dollar lagged after a recent sharp loss as many Federal Reserve policymakers try to temper expectations of further interest rate hikes next year after the US central bank’s latest policy meeting.
The US dollar index, which tracks rates against six other currencies, was down 0.37% at 102.162.
Crude remained positive, extending the previous session’s gains after attacks on ships in the Red Sea by Houthi fighters aligned with Yemen and Iran disrupted maritime trade and forced more companies to divert ships. The United States announced Tuesday the creation of a task force to protect Red Sea trade from attacks by Iran-backed Yemeni militants. The Houthis have vowed to defy the US-led naval operation and continue Israeli strikes in the region.
Gold prices strengthened as US dollar and Treasury yields fell as investors awaited US economic data this week that could shed light on the Federal Reserve and interest rates.
Copper prices rose as supply issues from mine closures, a weaker dollar and a drop in inventories of approved London Metal Exchange (LME) inventories led to buying.
MCX gold futures were up 0.41% at 62902. Silver up 0.44% to 75862. Copper up 0.81% to 726.65. Crude oil up to 6167, 1.50%. Natural gas down 3.13% to 207.3.
Economic data and events scheduled today.
Eurozone
At 12.30pm-
German GfK Consumer Climate. Data is foreseen at -26.9. Previous was at -27.8.
German PPI m/m. Data is foreseen at -0.3% from previous -0.1%.
At 2.30pm- Current Account. Data is foreseen at 27.0B from previous 31.2B.
At 8.30pm- Consumer Confidence. Data is foreseen at -16 from previous -17.00
Above data could have a volatile impact on the Eur.
UK
At 12.30pm-
CPI y/y. Data is foreseen at 4.3%. Previous was at 4.6%.
Core CPI y/y. Data is foreseen at 5.6% from previous 5.7%.
PPI Input m/m. Data is foreseen at -0.6%. Previous was at 0.4%.
PPI Output m/m. Data is foreseen at -0.1% from previous 0.1%.
At 3.00pm- HPI y/y. Data is foreseen at 0.0% from previous -0.1%.
Above data could have a volatile impact on the pound.
U.S.–
At 8.30pm-
CB Consumer Confidence. Data is foreseen at 104.6 from previous 102.00.
Existing Home Sales. Data is foreseen at 3.77M from previous 3.79M.
At 9.00pm- Crude Oil Inventories. Previous was at -4.3M.
At 10.30pm – FOMC Member Goolsbee Speaks.
Above data could have a positive impact on the dollar
Also Read: Will the Japanese yen depreciates by 3-4% against the dollar? , Economic Update: What’s Up with Bank Of Japan Policy Today?
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