The U.S. dollar retreated from a four-week high. The currency weakens against its major counterpart after U.S. weekly unemployment data failed to impress the market, a day after a key jobs report is set to release, and as Treasury yields rose but eased at the key short end.
The dollar index retreated from a four-week high of 102.843 and settled at 102.489 down by 0.10% against a basket of currencies.
Gold prices retreated from the day’s high of 59520 and settled at 59432. Silver extended its fall for a second consecutive day, however, it recovered from the day’s low of 71968 before closing at 72522. Copper witnessed a sharp recovery from the low of 733.60 and settled at 746.25. Crude oil jumped by 3.13% at 6761.
Economic data released yesterday
On Thursday, the Bank of England increased its benchmark interest rate by 25 basis points to a 15-year high of 5.25% while issuing a fresh warning that rates would likely remain high for some time due to the possibility that the impacts of rising inflation may continue longer than originally anticipated.
Initial state unemployment benefit claims in the United States rose by 6,000 to 227,000 seasonally adjusted for the week ending July 29, according to the Labour Department.
U.S. factory orders jumped 2.3% after climbing 0.4% in May, according to data released on Thursday by the Commerce Department.
Economic data and events to watch today
Eurozone
At 11.30 pm – German Factory Orders m/m. Data is foreseen at -2.1% from the previous 6.4%.
At 12.15 pm – French Industrial Production m/m. Data is foreseen at -0.3% from the previous 1.2%.
At 12.15 pm – French Prelim Private Payrolls q/q. Data is foreseen at 0.2% from the previous 0.4%.
At 1.30 pm – Italian Industrial Production m/m. Data is foreseen at -0.3% from the previous 1.6%.
At 2.30 pm – Retail Sales m/m. Data is foreseen at 0.3% from the previous 0.0%.
Tentative -EU Economic Forecasts
All the above data could have a volatile impact on the Euro.
U.K.
At 2.00 pm –Construction PMI. Data is foreseen at 48.1 from the previous 48.9.
At 4.45 pm – MPC Member Pill Speaks.
Above data could have a volatile impact on the market as well as on the Pound.
Canada
At 6.00 pm – Employment Change. Data is foreseen at 24.6k from 59.9K.
At 6.00 pm – Unemployment Rate. Data is foreseen at 5.5% from 5.4%.
Above data could have a positive impact on the Canadian dollar.
U.S
At 6.00 pm
Average Hourly Earnings m/m. Data is foreseen at 0.3% previous was at 0.4%.
Non-Farm Employment Change. Data is foreseen at 205k previous was at 209k.
Unemployment Rate. Data is foreseen at 3.6% previous was at 3.6%.
Above data could have a volatile impact on the dollar.