Major Economic Data and Event scheduled today – US PPI, Weekly Unemployment Claims data in Focus today
FX Update
The U.S. dollar sparked to near a seven-month high against major currencies on Wednesday after data showed U.S. inflation for October increased in line with expectations, suggesting the Federal Reserve will keep cutting rates.
The greenback has risen to its highest level since April 16, buoyed by Donald Trump’s victory in last week’s U.S. presidential election, which sparked expectations of potentially inflationary tariffs and other measures by his incoming administration.
The pound hovered near three-month lows against a stronger dollar on Wednesday, after a sharp fall in the previous session following data that showed inflation was easing in the UK. Stubborn UK inflation has so far forced the BoE to cut rates more slowly than either the euro zone or U.S. central banks, helping the pound outperform major currencies against the dollar this year.
Crude Oil:
Crude Oil prices held near their lowest in two weeks, a day after OPEC downgraded its forecast for global oil demand growth in 2024 and 2025 and amid demand concerns in China. However, rebounded slightly before closing.
Gold:
Gold prices gave up, suffering a fourth-straight loss as the dollar rebounded from session lows despite in-line US inflation data supporting bets for a December Federal Reserve rate cut.
Copper:
Copper prices hit a two-month low as the dollar climbed after the release of key US inflation data while weak demand prospects in top consumer China also dominated the mood.
Prices action (MCX)
Gold 74482 (-0.56%), Silver 89197 (-0.15%), Copper 799.95(-0.70%) Crude Oil 5796 (+0.35%) Natural gas 250.60 (+1.66%)
Major Economic Data and Event released yesterday
· The corporate goods price index (CGPI), which measures the price that companies charge each other for goods and services, rose 3.4% in October from a year earlier, Bank of Japan data showed on Wednesday, above market forecasts for a 3.0% gain.
· US The consumer price index rose 0.2% for the fourth straight month, the Labor Department said on Wednesday. In the 12 months through October, the CPI advanced 2.6% after climbing 2.4% in September
· US CPI excluding food and energy increased 0.3% in October, rising by the same margin for the third consecutive month. In the 12 months through October, the so-called core CPI gained 3.3%. That followed a similar advance in September.
Major Economic Data and Event scheduled today – US PPI, Weekly Unemployment Claims data in Focus today
Australia
At 6.00am-
Employment Change. Data is foreseen at 25.2k from previous 64.1k
Unemployment Rate. Data is foreseen at 4.1% from previous 4.1%.
Above data could have a negative impact on the dollar.
UK
At 6.30 pm-MPC Member Mann Speaks.
Above event could have a mixed impact on the Pound.
Eurozone
At 3.30pm-
Flash Employment Change q/q. Data is foreseen at 0.2% from previous 0.2%.
Flash GDP q/q. Data is foreseen at 0.4% from previous 0.4%.
Industrial Production m/m. Data is foreseen at -1.3% from previous 1.8%.
At 6.00pm- ECB Monetary Policy Meeting Accounts.
Above data could have a volatile impact on the Euro.
US
At 5.30pm- FOMC Member Kugler Speaks.
At 7.00pm-
Core PPI m/m. Data is foreseen at 0.3% from previous 0.2%.
PPI m/m. Data is foreseen at 0.2% from previous 0.0%.
Unemployment Claims. Data is foreseen at 224k from previous 221k.
At 7.30pm FOMC Member Barkin Speaks.
At 9.00pm- Natural Gas Storage
At 9.30pm- Crude Oil Inventories
Above data could have a volatile impact on the dollar.
Until then, Happy Trading!
Commodity Samachar Securities
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