With the Crude Oil Inventories and US Trade Balance on the horizon, the question on everyone’s mind is ” Who’s going to be top dog today?”
The dollar retreated against major currencies on Tuesday but held close to near three-month highs as strong economic data and an absurd interest rate cut by Federal Reserve officials gave the US currency a boost.
The dollar index traded down by 0.22% to 104.226.
Several solid US economic data, including Friday’s explosive unemployment report and recent remarks by Federal Reserve Chairman Jerome Powell, played down speculation that markets were expecting early and sharp rate hikes.
Oil futures edge higher after falling slightly earlier in the session as heightened geopolitical tensions support prices but fail to spark a rally.
Gold rebounded slightly on Tuesday as US dollar and Treasury yields fell as traders weighed remarks from several Federal Reserve officials this week to gauge the likely pace of rate hikes this year.
Copper prices rose for the first time in five sessions in London on Tuesday, supported by efforts by the largest consumer of the metal China to stabilize its market and a decline in metal inventories, although gains were limited by a strong dollar.
MCX gold futures up 0.36% to 62574. Silver settled up 0.16% at 70594. Copper up 0.18% to 717.25. Crude oil up 0.05% at 6084. Natural gas down 1.66% to 171.30.
Economic data and events scheduled – Will Crude Oil Inventories take over the market?
Japan
At 10.30 am – Leading Indicators. Data is foreseen at 109.4% from previous 107.6%.
Above data could have a positive impact on the Yen.
UK
At 12.30pm-Halifax HPI m/m. Data is foreseen at 0.8% from previous 1.1%.
At 2.10pm- MPC Member Breeden Speaks
Above data could have a mixed impact on the pound.
Eurozone
At 12.30pm- German Industrial Production m/m. Data is foreseen at -0.4% from previous -0.7%.
At 1.15pm-
French Prelim Private Payrolls q/q. Data is foreseen at -0.1% from previous 0.1%.
French Trade Balance. Data is foreseen at -6.0B from previous -5.9B.
All above data could have a volatile impact on the Euro.
Canada
At 7.00pm- Trade Balance. Data is foreseen at 1.1B from previous 1.6B.
Above data could have a mixed impact on the Canadian dollar.
US
At 7.00pm- Trade Balance. Data is foreseen at -62.0B from previous -63.2B.
At 9.00pm- Crude Oil Inventories. Forecast N.A. Previous was at 1.2M.
At 9.30pm- FOMC Member Kugler Speaks
At 11.00pm- FOMC Member Barkin Speaks
At 11.31pm-10-y Bond Auction.
Above data could have a Volatile impact on the dollar.
Commodity Samachar
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Also Read: India Energy Week 2024: Influencing Today’s Crude Oil and Natural Gas Trade? , Copper: Will Strong dollar, Chinese demand fear weight sentiment?
Recommended Read: Forex News Letter: Gold and Crude Oil Stealing the Spotlight?
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