US and Euro Inflation Data: Could They Drive the Day’s Moves?

The U.S. dollar off from its three-month low, now traded at 103.114 up .26%.  The currency is set to post its steepest monthly decline in a year as sentiment ramped up bets that the Federal Reserve is done with rate hikes ahead of a crucial inflation report later in the day along with Euro inflation data.

Now focus has shifted to the Core Personal Consumption Expenditures (PCE) Price Index set to be released later today. The numbers will have a significant impact, as the US Federal Reserve (Fed) preferred inflation measure.

Reaction to the PCE numbers is expected to be limited, however, as traders refrain from placing new directional bets on the greenback ahead of a speech by Federal Reserve Chairman Jerome Powell on Friday.

Crude oil turned neutral as investors remained cautious ahead of expected production cuts by the OPEC+ group, and as weaker-than-expected Chinese factory data underscored slowing growth in the world’s second-largest economy.

An official factory survey revealed that China’s manufacturing activity dropped for the second consecutive month in November, and at a faster rate than predicted, implying that more policy support measures are needed to help shore up economic development in the world’s top oil importer.

The official purchasing managers’ index (PMI) dipped to 49.4 in November, down from 49.5 in October, remaining below the 50-point threshold that separates contraction from expansion. Reuters polled analysts, who predicted a reading of 49.7.

MCX Gold future settled at 62808 up 0.314%. Silver at 7880 up 1.81%. Copper prices settled at 724.25 down 0.33%.  Crude oil settled at 6488 up 1.1%. Natural gas settled 236.30 down 2.76%.

Economic Data and Events Scheduled After The Euro inflation Data:


At 3.30pm –

Core CPI Flash Estimate y/y. Data is foreseen at 3.9% from previous %.

CPI Flash Estimate y/y. Data is foreseen at 2.7% from the previous 2.9%.

Italian Prelim CPI m/m. Data is foreseen at -0.20% from previous -0.20%.

Unemployment Rate. Data is foreseen at 6.5% from the previous 6.5%.

At 7.30pm- ECB President Lagarde Speaks.

At 10.30pm – German Buba President Nagel Speaks.

Above data could have a negative impact on the Eur.


At 7.00pm –GDP m/m. Data is foreseen at 0.0% from previous 0.0%.

Above data could have a neutral impact on the Canadian dollar.


At 7.00pm-

Core PCE Price Index m/m. Data is foreseen at 0.2% from the previous 0.3%.

Unemployment Claims. Data is foreseen at 219k from the previous 209k.

Personal Income m/m. Data is foreseen at 0.2% from the previous 0.3%.

Personal Spending m/m. Data is foreseen 0.2% from previous 0.7%.

At 7.45pm- FOMC Member Williams Speaks.

At 8.15pm- Chicago PMI. Data is foreseen at 46 from the previous 44.

At 8.30pm – Pending Home Sales m/m. Data is foreseen at-1.9% from previous 1.1%.

At 9.00pm – Natural Gas Storage. Foreseen at -8B from previous -7B.

Above data could have a negative to volatile impact on the dollar.

Commodity Samachar
Learn and Trade with Ease

Also read: Is Crude Gearing Up for Turbulence Ahead of the OPEC Meeting? , Gold Trading: What’s Driving the Prices to 7-Month Highs and Beyond?

Recommended Read : Changing Perspectives: Are The Lives Of US Citizens A Priority Now Over Controlling Inflation After Fed Minutes?

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