The dollar weakened to a three-day low against a basket of currencies on Thursday, as the previous session and a surge in risk aversion to the US currency faded and traders looked to Friday as the US PCE figures are awaited for clues on future Federal Reserve policy.
US gross domestic product rose 4.9 percent year over year in the fourth quarter, up from a previously reported 5.2 percent. The US dollar index, which tracks rates against six other currencies, rose 0.18% to 102.326.
Oil prices fell from the day’s high after Angola announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC). However, tensions persisted in the Middle East following Houthi attacks on ships in the Red Sea, although Angola’s decision to leave OPEC raised questions over the group’s effectiveness in supporting prices.
Gold prices rose on Thursday as US Treasury yields fell after economic data fuelled expectations that the Federal Reserve is likely to cut interest rates next year.
MCX gold futures up 0.15% to 62871. Silver rose 0.03% to 76536. Copper was flat at 726.00. Crude oil down to 6134, 0.65%. Natural gas up 4.41 percent to 215.30
.
Economic data and events scheduled- Will the US PCE take centre stage?
Japan
At 5.00am – National Core CPI y/y. Data is foreseen at 2.5% from previous 2.9%.
At 5.20am – Monetary Policy Meeting Minutes
Above data could have a negative impact on the Yen.
Eurozone
At 12.30pm- German Import Prices m/m. Data is foreseen at 0.4%. Previous was at 0.3%.
At 7.30pm- Belgian NBB Business Climate. Data is foreseen at -14.6 from previous -15.
Above data could have a negative impact on the pound.
UK
At 12.30pm-
Retail Sales m/m. Data is foreseen at -0.4%. Previous was at 0.3%.
Current Account. Data is foreseen at -13.1B. Previous was at -25.3B.
Final GDP q/q. Data is foreseen at 0.0%. Previous was at 0.0%.
Revised Business Investment q/q. Data is foreseen at -4.2% from previous -4.2%.
Above data could have a volatile impact on the pound.
Canada
At 7.00pm-
GDP m/m. Data is foreseen at 0.2% from previous 0.1%.
Above data could have a positive impact on the Canadian dollar.
U.S.–
At 7.00pm-
Core US PCE Price Index m/m. Data is foreseen at 0.2% from previous 0.2%.
Core Durable Goods Orders m/m. Data is foreseen at 0.1% from previous 0.0%.
Durable Goods Orders m/m. Data is foreseen at 2.4% from previous -5.4%.
Personal Income m/m. Data is foreseen at 0.4% from previous 0.2%.
Personal Spending m/m. Data is foreseen at 0.3% from previous 0.2%.
At 8.30pm-
Revised UoM Consumer Sentiment. Data is foreseen at 69.4 from previous 69.4.
New Home Sales. Data is foreseen at 689k from previous 679k.
Revised UoM Inflation Expectations. Previous was at 3.1%.
Above data could have a volatile impact on the dollar.
Commodity Samachar
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