The US Non-Farm Payroll data is expected to drive volatility in the markets.
Dollar Index:
The dollar rose to a six-week high on Thursday as data showed a still-solid economy while safe haven demand on concerns about rising Middle East tensions and the impact of a dockworker strike also boosted the currency.
The greenback has additionally benefited from more dovish central bank expectations being built into currency peers, including the euro, sterling and Japanese yen.
Sterling tumbled after Bank of England Governor Andrew Bailey said that the British central bank could move more aggressively to cut interest rates if inflation pressures continue to weaken, though he said the conflict in the Middle East could push up oil prices.
Crude Oil:
Oil prices jumped in afternoon European trade as escalating hostilities in the Middle East fuel fears of supply disruptions. Brent crude is up 4% at $76.84 a barrel, while WTI trades 4.2% higher at $73.09 a barrel.
Gold:
Gold futures are broadly flat at a troy ounce, with prices consolidating near all-time highs. The Federal Reserve’s recent 50 basis point interest cut and the prospect of more cuts to come, married with rising geopolitical tensions have fuelled bullish momentum.
Copper:
Copper futures steadied after a bout of profit-taking earlier this week, as demand optimism in top consumer China driven by a comprehensive stimulus package continued to support prices.
Prices action (MCX)
Gold 76244 (-0.19%), Silver 92978 (+0.1.75%), Copper 852.60(-0.47%) Crude Oil 6161 (+3.81%) Natural gas 249.20 (+2.34%)
Yesterday Data and Event Update –
.U.S. initial jobless claims climbed to 225,000 in the week ended on Sept. 28, increasing from an upwardly-revised mark of 219,000 last week, data from the Labor Department showed on Thursday.
Factory orders dropped 0.2% after a slightly downwardly revised 4.9% increase in July, the Commerce Department’s Census Bureau said on Thursday.
The Institute for Supply Management (ISM) said that its nonmanufacturing purchasing managers (PMI) index accelerated to 54.9 last month, the highest level since February 2023, from 51.5 in August.
Major Economic Data and Event scheduled today
Eurozone
At 12.15pm— French Industrial Production m/m. Data is foreseen at 0.3% from previous -0.5%z`.
At 3.30pm – Italian Retail Sales m/m. Data is foreseen at 0.2% from previous 0.5%
Above data could have a neutral impact on the Euro.
UK
At 2.00pm- Construction PMI. Data is foreseen at 53.10 from previous 53.60.
Tentative- Housing Equity Withdrawal q/q. Data is foreseen at -20.3B from previous -23.9B.
Above data could have a mixed impact on the Pound.
.U.S.
At 6.00pm-
Average Hourly Earnings m/m. Data is foreseen at 0.3% from previous 0.4%
Non-Farm Employment Change. Data is foreseen at 148k from previous 142k.
Unemployment Rate. Data is foreseen at 4.2% from previous 4.2%.
At 6.30pm- FOMC Member Williams Speaks.
Above data could have a volatile impact on the dollar.
Happy Trading!
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Also Read: Silver Price Soars Amid Mid-East Tensions: Will It Break? “Market Meltdown: Investors Panic as Nifty Takes a Dive!”
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