The U.S. dollar weakened to a three-month low on Tuesday, as the market continued to take the view that growth in the US economy is starting to slow down after an aggressive tightening cycle since March last year. In addition, anticipation of the German inflation data is also creating momentum in the market.
However, US economy data continued to trend in a positive direction. US consumer confidence rose in November after three straight monthly declines, although households still expected a recession next year, a survey showed.
The US economy consumer confidence index rose to 102.0 this month from a downwardly revised 99.1 in October, according to the Conference Board.
In the United States, the annual increase in house prices accelerated again in September, which highlighted the revival of the housing market in the last quarter of the year.
Crude paused its recent fall, and gained over 2%, on the possibility that OPEC+ will extend or deepen supply cuts, a storm-related drop in Kazakh oil output and a weaker U.S. dollar.
OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, are due to hold an online ministerial meeting on Thursday to discuss 2024 production targets.
Gold rose to its highest level in more than six months on a weaker dollar and expectations that the US Federal Reserve has stopped raising interest rates.
The dollar index which measures the currency against six major counterparts fell 0.44%. MCX Gold future settled at 62385 up 1.37%. Silver at 75299 is up 0.66%. Copper prices settled at 722.20 up 0.49%. Crude oil settled at 6413 up 2.38%. Natural gas settled 243.8 up 4.34%.
Economic data and Events Scheduled Today – Will US Economy Data Give Market Momentum?
Australia
At 6.00 am-
CPI y/y. Data is foreseen at 5.2% from the previous 5.6%.
Construction Work Done q/q. Data is foreseen at 0.3% from the previous 0.4%.
The above data could have a neutral impact on the dollar.
Eurozone
At 12.00 pm –French Final Private Payrolls q/q. Data is foreseen at -0.1% from previous -0.1%.
12.30 pm- German Import Prices m/m. Data is foreseen at -0.3% from the previous 1.6%.
All day – German Prelim CPI m/m. Data is foreseen at -0.1% from the previous 0.0%.
At 1.30 pm – Spanish Flash CPI y/y. Data is foreseen at 3.6% from the previous 3.5%.
The above data could have a negative impact on the Euro.
UK
At 3.00 pm –
M4 Money Supply m/m. Data is foreseen at -0.2% from previous -1.1%.
Mortgage Approvals. Data is foreseen at 45k from the previous 43k.
Net Lending to Individuals m/m. Data is foreseen at 1.2B from the previous 0.5B.
At 8.35 pm- BOE Gov Bailey Speaks.
The above data could have a volatile impact on the pound.
Canada
Current Account. Data is foreseen at 0.7B from the previous -6.6B.
The above data could have a positive impact on the pound.
U.S
At 7.00 pm-
Prelim GDP q/q. Data is foreseen at 5.0% from the previous 4.9%.
Prelim GDP Price Index q/q. Data is foreseen at 3.5% from the previous 3.5%.
Goods Trade Balance. Data is foreseen at -86.4B from previous -86.8B.
Prelim Wholesale Inventories m/m. Data is foreseen at 0.1% from the previous 0.2%.
At 9.00 pm – Crude Oil Inventories. Foreseen at -1.7M from the previous 8.7M.
The above data could have a negative to volatile impact on the dollar.
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Also Read: Silver Price Soars: Consecutive Gains expected or vice versa?, Suspense Booming: Are Unseen Factors Building Anticipation For The OPEC Meeting?
Recommended Read: Changing Perspectives: Are The Lives Of US Citizens A Priority Now Over Controlling Inflation After Fed Minutes?
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