The dollar index, which measures the currency against six major peers including the yen, pound, euro and Swiss franc, jumped nearly half a percent yesterday. The currency rose after the Swiss National Bank’s second consecutive interest rate hike and the Bank of England’s hints that it would do so in August.
The BoE kept interest rates on hold, but some policymakers said the decision not to cut was a “delicate balance”. of.
The US Department of Labor reported that the number of Americans applying for unemployment insurance fell to 238K in the week ending June 15 compared to the 235K expected.
Housing Starts declined 5.2% to a seasonally adjusted annual rate of 982K units in May, and Building Permits fell 2.9% to 949K units.
Adding to this, the Philadelphia Fed Manufacturing Index unexpectedly declined to 1.3 in June from 4.5 in the previous month, though it remained in positive territory for a fifth successive month.
Gold jumped over one percent yesterday, as weak economic data from the U.S. boosted expectations that the Federal Reserve would cut interest rates this year.
Copper recovered over half percent on hopes for improved demand in China following recent price drops and as world stock markets hit record highs.
Crude Oil futures climbed after the U.S. Energy Information Administration (EIA) reported a draw on crude oil and data showing a cooling jobs market that stoked hopes the Federal Reserve could cut interest rates soon.
Crude inventories fell by 2.5 million barrels in the week ending June 14 to 457.1 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 2.2 million-barrel draw.
MCX gold futures settled +1.19% to 72586.Silver settled +2.45% to 91665.Copper settled 0.86% to 861.90. Crude oil +0.98% at 6799. Natural gas -4.96% to 229.90.
Economic data and dollar index events scheduled today
Japan
At 5.20am-
National Core CPI y/y. Data is foreseen at 2.6% from previous 2.2%.
At 6.00am- Flash Manufacturing PMI. Data is foreseen at 50.6 from previous 50.4.
Above data could have a neutral impact on the Yen.
Eurozone
At 12.30pm. German Buba President Nagel Speaks.
At 12.45pm-
French Flash Manufacturing PMI. Data is foreseen at 46.8 from previous 46.4.
French Flash Services PMI. Data is foreseen at 50.0 from previous 49.3
At 1.00pm-
German Flash Manufacturing PMI. Data is foreseen at 46.4 from previous 45.4.
German Flash Services PMI. Data is foreseen at 54.4 from previous 54.2.
At 1.30pm-
Flash Manufacturing PMI. Data is foreseen at 48.0 from previous 47.3
Flash Services PMI. Data is foreseen at 53.5 from previous 53.2.
Above data could have a volatile impact on the Euro.
U.K.
At 11.30am-
Retail Sales m/m. Data is foreseen at 1.6% from previous -2.3%.
Public Sector Net Borrowing. Data is foreseen at 14.5B from previous 19.6B.
At 2.00pm-
Flash Manufacturing PMI. Data is foreseen at 51.3 from previous 51.2
Flash Services PMI. Data is foreseen at 53.00 from previous 52.90.
Above data could have a volatile impact on the pound.
Canada
At 6.00pm-
Core Retail Sales m/m. Data is foreseen at 0.5% from previous -0.6%.
Retail Sales m/m. Data is foreseen at 0.7% from previous -0.2%.
IPPI m/m. Previous was at 1.5%.
RMPI m/m. Previous was at 5.5%.
Above data could have a positive impact on the dollar.
US
At 7.15pm-
Flash Manufacturing PMI. Data is foreseen at 51.0 from previous 51.3.
Flash Services PMI. Data is foreseen at 53.40 from previous 54.80.
At 7.30pm-
Existing Home Sales. Data is foreseen at 4.08M from previous 4.14M.
CB Leading Index m/m. Data is foreseen at -0.4%, from previous -0.6%.
At 8.00pm- Natural Gas Storage. Previous was at 74B.
Above data could have a volatile on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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