The U.S. dollar had a modestly gain against the Euro as hotter-than-expected U.S. inflation data stoked worries about when and by how much the Federal Reserve would start cutting interest rates this year. Data on Thursday showed the U.S. producer price index for final demand rose 0.6% in February above the 0.3% rise economists had forecast. That came after figures on Tuesday showed consumer prices increased strongly for a second straight month in February Crude Oil prices settled at five-month highs Thursday, as the International Energy Agency’s upgraded its crude demand growth forecast, easing jitters about a potential supply surplus. Gold prices were headed on Friday for their first weekly fall in four as surprisingly hot U.S. inflation readings suggested that the Federal Reserve could reduce the number of rate cuts this year and may push the first cut beyond June. U.S. producer prices increased more than expected in February amid a surge in the cost of goods such as gasoline and food, which could fan fears that inflation is picking up again. Copper Prices continued rose to a near three-year high on Thursday, buoyed by expectations of lower supply as Chinese producers agreed tp cut output, while London copper eased amid a firm U.S. dollar. China’s biggest copper smelters met in Beijing on Wednesday, agreeing on a symbolic cut in money-losing production, without specifying volumes and timing. MCX gold futures settled -0.46% to 65595.Silver settled +0.07% at 75226. Copper settled -0.09% to 752.20. Crude oil 2.48% at 6742. Natural gas +2.28% to 143.3
Economic data and events scheduled today
China
Tentative- New Loans. Data is foreseen at 1510B from previous 4920B.
Tentative- M2 Money Supply y/y. Data is foreseen at 8.8% from previous 8.7%.
Above data could have a positive impact on the Yuan.
Eurozone
At 1.15pm- French Final CPI m/m. Data is foreseen at 0.8% from previous 0.8%.
At 3.30pm- Italian Retail Sales m/m. Data is foreseen at 0.2% from previous -0.1%.
At 4.30pm-Italian Trade Balance. Data is foreseen at 6.22B from previous 5.61B.
Above data could have a mixed impact on the Euro.
UK
At 3.00pm- Consumer Inflation Expectations. Previous was at 3.3%.
Above data could have a mixed impact on the Pound.
Canada
At 5.45pm- Housing Starts. Data is foreseen at 227K from previous 224K.
At 6.00pm-
Foreign Securities Purchases. Data is foreseen at 2.05B from previous 10.44B.
Wholesale Sales m/m. Data is foreseen at -0.6% from previous 0.3%.
Above data could have a neutral impact on the dollar
US
At 6.00pm- Empire State Manufacturing Index. Data is foreseen at -7.00 from previous -2.4.
At 6.00pm-
Industrial Production m/m. Data is foreseen at 0.0% from previous -0.1%.
Capacity Utilization Rate. Data is foreseen at 78.5% from previous 78.5%
At 7.30pm-.
Prelim UoM Consumer Sentiment. Data is foreseen at 77.1 from previous 76.9.
Prelim UoM Inflation Expectations. Previous was at 3.0%.
Above data could have a volatile impact on the dollar.
Commodity Samachar
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