The US dollar extended last week and fell against its major peers as the US currency remains under pressure from the US Federal Reserve last week, signalling the possibility of interest rate hikes next year. Meanwhile, the dollar rose against the yen as the Bank of Japan (BOJ) began a two-day meeting that could be decisive in determining whether to end the central bank’s ultra-loose interest rates.
The US dollar index, which tracks rates against six other currencies, was down 0.07% at 102.5220.
Crude oil gained more than 3%, as attacks on ships in the Red Sea by Yemen’s Iran-aligned Houthi rebel group disrupted maritime trade.
On Monday, a Norwegian ship was attacked in the Red Sea, and oil major BP said it would temporarily suspend traffic through the entire body of water. Other shipping lines said over the weekend they were avoiding the route.
Gold remained positive yesterday as the dollar weakened as government yields rose. Copper turned slightly negative on concerns about weak demand in top consumer China, although losses were limited by mine closures and disruptions that raised the prospect of tight supplies.
Unrest in China and the real estate market weighed on demand for industrial metals for most of the year, despite government efforts to support the industry.
MCX gold futures were up 0.18% at 62643. Silver fell 0.12% to 75532. Copper fell 0.69% to 720.80. Crude oil up to 6076, 2.15%. Natural gas up 1.81% to 214.20.
Economic data and Events Scheduled: Will Bank Of Japan Policy Be Focus?
Japan
Tentative – Monetary Policy Statement. Bank Of Japan Policy Rate. Foreseen unchanged at 0.10%.
Tentative – Bank Of Japan Press Conference.
Both data could have a volatile impact on the Yen.
Eurozone
At 3.30pm-
Final Core CPI y/y. Data is foreseen at 3.6%. Previous was at 3.6%.
Final CPI y/y. Data is foreseen at 2.4% from previous 2.4%.
Above data could have a volatile impact on the Eur.
UK
At 4.30pm – CBI Industrial Order Expectations. Data is foreseen at -28 from previous -35.
At 6.30pm- MPC Member Breeden Speaks.
Above data could have a Neutral impact on the pound.
Canada
At 7.00pm-
CPI m/m. Data is foreseen at -0.2% from previous 0.1%.
Core CPI m/m. Data is foreseen at -0.8% from previous -1.0%.
Above data could have a negative impact on the Canadian dollar
U.S.–
At 7.00pm-
Building Permits. Data is foreseen at 1.46M from previous 1.49M.
Housing Starts. Data is foreseen at 1.36M from previous 1.37M.
Above data could have a negative impact on the dollar.
Commodity Samachar
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