Top Economic News You Can’t Afford to Miss Today
FX Update
The dollar was higher on Wednesday after U.S. price data came in line with forecasts, reinforcing expectations the U.S. Federal Reserve will cut interest rates next week. The dollar was also boosted by a Reuter’s report China was considering allowing a weaker currency next year, which sent the yuan and other Asian currencies lower.
The consumer price index rose 0.3% last month, the largest gain since April after advancing 0.2% for four straight months, data showed on Wednesday. Economists polled by Reuters had forecast the index would rise 0.3%.
Crude Oil:
Oil prices settled more than 1.5% higher after the European Union agreed to an additional round of sanctions threatening Russian oil flows that could tighten global crude supplies.
U.S. crude inventories fell for the third time in a row, while fuel stockpiles rose in the week ending December 6, the Energy Information Administration (EIA) said on Wednesday, as refinery activity remained seasonally strong. Crude inventories fell by 1.4 million barrels to 422 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 901,000-barrel draw..
Gold:
Gold gained on after an inflation print came in line with expectations, boosting the likelihood of a Federal Reserve rate cut next week, while investors awaited U.S. Producer Price Index (PPI) data for further direction on monetary policy.
Copper:
Copper prices fell in response to a stronger U.S. dollar, paring gains that drove the market to one-month highs on expectations leading commodities consumer China will relax monetary policy to spur economic growth.
MCX Closing Update
Gold 79,002 (0.85%), Silver 95,802 (0.29%), Crude oil 5,934 (1.52%), Copper 829.55(-0.13%), Natural Gas 286.70(7.10%)
Major Economic Data and Event Update
· The U.S. government posted a $367 billion budget deficit for November, up 17% from a year earlier, as calendar adjustments for benefit payments boosted outlays by some $80 billion compared to the same month in 2023, the Treasury Department said on Wednesday
· U.S. consumer prices increased in November by the most in seven months, but the Federal Reserve was still expected to deliver a third consecutive interest rate cut next week to support a labor market that has been cooling.
· The consumer price index rose 0.3% last month, the largest gain since April after advancing 0.2% for four straight months, the Labor Department’s Bureau of Labor Statistics said.
· A 0.3% increase in the cost of shelter, mostly hotel and motel rooms, accounted for nearly 40% of the rise in the CPI. Shelter costs rose 0.4% in October. The cost of lodging away from home, including hotels and motels, jumped 3.7%. That was the most since October 2022 and followed a 0.5% rise in October.
· Food prices increased 0.4% after rising 0.2% in October. Grocery store food prices surged 0.5%, with the cost of eggs soaring 8.2% amid an avian flu outbreak.
· In the 12 months through November, the CPI climbed 2.7% after increasing 2.6% in October. The rise in the CPI was in line with economists’ expectations.
Major Economic News, Data and Event scheduled today
Australia
At 6.00am-
Employment Change. Data is foreseen at 26k from previous 15.9k.
Unemployment Rate. Data is foreseen at 4.2% from previous 4.1%.
Above data could have a negative impact on the dollar.
Swiss Bank Policy
At 2.00pm –
SNB Monetary Policy Assessment.
SNB Policy Rate. Data is foreseen at 0.75% from previous 1%.
At 2.30pm- SNB Press Conference
Above data could have a negative impact on the Swiss Fanc.
Eurozone
At 2.30pm- Italian Quarterly Unemployment Rate. Data is foreseen at 6.6% from previous 6.8%.
At 6.45pm –
Main Refinancing Rate. Expect 3.15% from 3.40%. Monetary Policy Statement
At 7.15pm- ECB Press Conference
Above data could have a negative impact on EURINR.
Canada
At 8.15pm-
Building Permits m/m. Data is foreseen at -4.8% from previous 11.5%.
Above mentioned economic news and data could have a volatile impact on the dollar.
US
At 7.00pm
Core PPI m/m. Data is foreseen at 0.2% from previous 0.3%.
PPI m/m. Data is foreseen at 0.2% from previous 0.2%.
Unemployment Claims. Data is foreseen at 221k from previous 224k.
At 9.00pm- Natural Gas Storage
Above mentioned economic news and data could have a volatile impact on the dollar.
Until then, Happy Trading!
Commodity Samachar Securities
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