FX Update
The U.S. dollar advanced against the yen and euro on Tuesday after data showed a generally stable jobs market and a services sector that remained robust, suggesting that the Federal Reserve will likely slow the pace of its current rate-cutting cycle.
Data showed U.S. job openings in November grew to 8.098 million, exceeding forecasts for a 7.7 million rise, and higher than October’s numbers of 7.839 million. U.S. services sector activity also accelerated in December, with the Institute for Supply Management’s nonmanufacturing purchasing managers index (PMI) increasing to 54.1 last month from 52.1 in November amid strong demand.
The pound rose to a new one-week high versus the dollar on Tuesday after jumping the day before after a media report said U.S. President-elect Donald Trump’s advisers were considering applying tariffs only to critical imports.
Trump, who refuted the report on Monday, had vowed to impose tariffs of 10% on global imports into the United States along with a 60% tariff on Chinese goods, increasing expectations for higher inflation and supporting the dollar..
Crude Oil:
Oil prices rose as supplies from Russia and OPEC members tightened, while data showing an unexpected increase in U.S. jobs openings pointed to expanding economic activity and consequent growth in oil demand.
Gold:
Gold prices climbed nearly half percent, helped by a fall in the U.S. dollar and as China’s central bank added to its gold reserves for a second straight month, while the market awaited U.S. economic data to gauge the Federal Reserve’s policy path.
Copper
Copper futures gained over 0.5% on Tuesday after rising more than 2% in the previous session. The rally was fueled by a weaker US dollar, driven by reports suggesting a potentially softer stance on tariffs by the Trump administration. However, President-elect Trump later denied these claims, tempering market enthusiasm.
MCX Closing Update
Gold 77,531 (0.48%), Silver 90,873 (0.35%), Crude oil 6,385 (1.22%), Copper 816.65 (0.50%), Natural Gas 300.60 (-3.22%).
Economic Data and Event Releases yesterday
US Data Releases:
JOLTS job openings 8.098M vs 7770M estimate
US December ISM services 54.1 vs 53.3 expected
Eurozone Releases :
Italy December preliminary CPI 1.3% vs 1.5% y/y expected
Eurozone November unemployment rate 6.3% vs 6.3% expected
Eurozone December preliminary CPI +2.4% vs +2.4% y/y expected
UK December construction PMI 53.3 vs 54.4 expected
Economic Data and Event scheduled today
Australia
At 6.00am- CPI y/y. Data is foreseen at 2.2% from previous 2.1%.
Above data could have a positive impact on the dollar.
Japan
At 10.30am – Consumer Confidence. Data is foreseen at 36.6 from previous 36.4.
Above data could have a positive impact on the Yen.
Eurozone
At 12.30pm –
German Factory Orders m/m. Data is foreseen at -0.3% from previous -1.5%.
German Retail Sales m/m. Data is foreseen at 0.5% from previous -1.5%.
At 1.15pm – French Trade Balance. Data is foreseen at -7.0B from previous -7.7B.
At 3.30pm- PPI m/m. Data is foreseen at 1.5% from previous 0.4%
Above data could have a mixed impact on the Euro.
US
At 6.45pm- ADP Non-Farm Employment Change. Data is foreseen at 136K from previous 146K.
At 7.00pm-
Unemployment Claims. Data is foreseen at 214K from previous 211K
FOMC Member Waller Speaks.
At 8.30pm- Final Wholesale Inventories m/m.
At 9.00pm- Crude Oil Inventories.
At 10.30pm- Natural Gas Storage
At 12.30am- FOMC Meeting Minutes
Above data could have a volatile impact on the dollar.
Until then, Happy Trading!
Commodity Samachar Securities
We Decode the Language of the Markets
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