US CPI data in Focus today. The U.S. dollar rose to a four-month peak 106 versus major peers on Tuesday, while bitcoin extended its record.
FX Update
The U.S. dollar rose to a four-month peak 106 versus major peers on Tuesday, while bitcoin extended its record rally as investors continued to pile into trades seen as benefiting from the incoming Donald Trump administration.
The pound fell to a three-month low after data on Tuesday showed regular wage growth cooled and unemployment ticked up, and as currencies felt the pressure of a surging dollar after Donald Trump’s U.S. election victory.
The euro languished at a seven-month trough and the yuan slumped to its lowest in more than three months, with Europe and China both targets of potential Trump tariffs.
Crude Oil:
Crude Oil prices were little changed, awaiting further price direction from OPEC’s monthly report, while investor disappointment over China’s latest stimulus plan and oversupply concerns limited gains.
Gold:
Gold prices declined for a second day, hurt by a firmer dollar and increased risk appetite, as markets expect the Federal Reserve to adopt a cautious approach under U.S. President-elect Donald Trump’s administration.
Copper:
Copper prices slid to a two-month low, as the U.S. dollar strengthened and weak demand prospects in top metals consumer China continued to weigh on the market in the wake of recent economic stimulus measures..
Prices action (MCX)
Gold 74901 (-0.60%), Silver 89327 (+0.16%), Copper 805.60(-1.91%) Crude Oil 5776 (+0.24%) Natural gas 246.50 (-0.52%)
Major Economic Data and Event released yesterday
· German inflation rose to 2.4% in October, the federal statistics office said on Tuesday, confirming preliminary data. German consumer prices, harmonised to compare with other European Union countries, had risen by 1.8% year-on-year in September.
· Data on Tuesday showed British wage growth, excluding bonuses, fell in the third quarter to its lowest level in more than two years. Unemployment in September rose to 4.3%, from 4.1%, although low survey response rates have reduced the reliability of British jobs figures.
· India’s industrial output 3.1% year-on-year in September backed by manufacturing activity, government data showed on Tuesday. Economists polled by Reuters had expected a growth of 2.5%. In August, industrial output had contracted for the first time in nearly two years.
· India’s retail inflation in October accelerated to 6.21% year-on-year, breaching the central bank’s target range for the first time in over a year, as food prices remained stubbornly high, government data released on Tuesday showed.
Major Economic Data and Event scheduled today – US CPI data in Focus today
Japan
At 5.00am-
PPI y/y. Data is foreseen at 2.9% from previous 2.8%
Above data could have a neutral impact on the Yen.
Australia
At 6.00am- Wage Price Index q/q. Data is foreseen at 0.9% from previous 0.8%.
Above data could have a negative impact on the dollar.
UK
At3.15 pm-MPC Member Mann Speaks.
Above event could have a mixed impact on the Pound.
Canada
Above data could have a mixed impact on the Canadian dollar.
US
At 7.00pm-
Core CPI m/m. Data is foreseen at 0.3% from previous 0.3%.
CPI m/m. Data is foreseen at 0.2% from previous 0.2%.
CPI y/y. Data is foreseen at 2.6% from previous 2.4%.
FOMC Member Kashkari Speaks.
At 8.00pm-FOMC Member Williams Speaks
At 8.15pm- FOMC Member Logan Speaks
At 11.30pm- FOMC Member Musalem Speaks
Above data could have a volatile impact on the dollar.
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