US PPI, UK GDP data in Focus today

US PPI, UK GDP data in Focus today

Dollar Index

The U.S. dollar edged lower against the yen on Thursday after data showed signs of labor market
weakness and a higher-than-expected rise in U.S. inflation in September even though prices were on a
downward trend, allowing the Federal Reserve to keep cutting interest rates.
Labor Department data on Thursday showed that the consumer price index increased 0.2% in
September. In the 12 months through September the CPI climbed 2.4%, which was the smallest year-on-
year rise since February 2021.

Crude Oil:

Oil prices climbed about 4% on a spike in fuel use before Hurricane Milton barreled across Florida,
Middle East supply risks and signs that demand for energy could grow in the U .S. and China. Brent LCOc1
futures rose $1.62, or 2.1%, to $78.20 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1
rose $1.48, or 2.0%, to $74.72. In the U.S., the world’s largest oil producer and consumer, Hurricane
Milton barreled across Florida, where about a quarter of fuel stations sold out of gasoline, knocking out
power to more than 3.4 million homes and businesses.

Gold:

Gold prices extended gains on Thursday after traders added to bets that the Federal Reserve will deliver
an interest-rate cut next month following the latest U.S. economic data. The higher than expected rise
further rules out another 50 basis point cut to interest rates when the Federal Reserve’s policy
committee meets next month but may not convince the central bank to pause on lowering rates.

Copper:

Copper prices bounced on hopes that top metals consumer China would announce a fiscal stimulus
package that would boost metals demand. Prices have returned to levels reached before China started
announcing supportive measures for its flagging economy, which have been below expectations and
lacked detail.

Prices action (MCX)

Gold 75297 (+0.48%), Silver 90304(+1.61%), Copper 832.35(+0.74%) Crude Oil 6394 (+4.49%) Natural gas
224 (+0.63%)

Yesterday Data and Event Update –

 U.S. consumer prices rose slightly more than expected in September, but the annual increase in
inflation was the smallest in more than 3-1/2 years, potentially keeping the Federal Reserve on
track to cut interest rates again next month.

 The consumer price index increased 0.2% last month after gaining 0.2% in August, the Labor
Department said on Thursday. In the 12 months through September, the CPI climbed 2.4%, the
smallest since February 2021 following Augusts’ 2.5% advance.

 Initial claims for state unemployment benefits increased to 258,000 last week, compared
with a analyst estimate of 230,000 claims.

Major Economic Data and Event scheduled today (US PPI, UK GDP data)

Japan
At 5.20am- M2 Money Stock y/y. Data is foreseen at 1.5% from previous 1.3%.
Above data could have a neutral impact on the Yen.

Eurozone
At 11.30am— German Final CPI m/m. Data is foreseen at 0.0% vs 0.0%..
Above data could have a neutral impact on the Euro.

UK
At 11.30am—
GDP m/m. Data is foreseen at 0.2% vs 0.0%.
Construction Output m/m. Data is foreseen at 0.5% vs -0.4%.
Goods Trade Balance. Data is foreseen at -18.8B vs -20.0B.
Index of Services 3m/3m. Data is foreseen at 0.3% vs 0.6%.
Industrial Production m/m. Data is foreseen at 0.2% vs -0.8%.
Manufacturing Production m/m. Data is foreseen at 0.3% vs -1%.
Above data could have a positive impact on the pound.

Canada
At 6.00pm—
Employment Change. Data is foreseen at 29.8k from previous 22.1k.
Unemployment Rate. Data is foreseen at 6.7% from previous 6.6%.
Building Permits m/m. Data is foreseen at -7.1% from previous -22.1%.
Above data could have a volatile impact on the dollar.

.U .S
At 6.00pm-
Core PPI m/m. Data is foreseen at 0.2% from previous 0.3%.
PPI m/m. Data is foreseen at 0.1% from previous 0.2%.
At 7.15pm- FOMC Member Goolsbee Speaks.
At 7.30pm- Prelim UoM Consumer Sentiment. Data is foreseen at 70.9 from previous 70.1.
At 8.15pm- FOMC Member Logan Speaks.
At 10.40pm- FOMC Member Bowman Speaks
Above data could have a volatile impact on the dollar.

Happy Trading!

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