Will Today’s US Inflation Data Conjure Speculative Moves in the Market?

The US dollar traded in a neutrally quiet range, ahead of key US inflation data that could affect interest rates going forward. The focus is on consumer and producer inflation reports for December, on Thursday and Friday, which could help determine the direction of the central bank’s monetary policy.

New York Federal Reserve President John Williams said on Wednesday that it is too early to call for a rate cut because the central bank still has some way to go to bring inflation to its 2 percent target.

Crude oil fell 1.71% after US government data showed an unexpected increase in crude inventories. The EIA report showed that US crude oil inventories rose by 1.338 million barrels last week, compared to expectations of 675 thousand barrels. Instead, industry data showed a significant decline of 5.2 million barrels on Tuesday. However, geopolitical tensions in the Middle East and the cessation of oil production in Libya continued to support lower levels.

Libya’s Sharara oil field has halted oil production since last week amid political protests, taking about 300,000 barrels a day off the market.

The protracted war in Gaza and Houthi attacks on shipping in the Red Sea have also raised fears of a wider conflict in the region that could further disrupt supplies.

Gold fell slightly as investors questioned bets on an early Federal Reserve rate cut. Copper recovered from the lows of the day, supported by increased expectations of monetary policy easing by the PBO. Hansen says the risk of supply disruptions and production cuts is also supporting prices. Panama’s government forced to close Cobre Panama’s first quantum-electric mine, which could reduce supplies.

MCX gold futures down 0.29% to 61996. Silver settled down 0.11 % at 71969. Copper up 0.35% to 716.40. Crude oil 5931, down 1.71%. Natural gas down 8.39% to 248.80.

Economic data and events scheduled – Wil US Inflation Data Be The Showstopper?


At 6.00am- Goods Trade Balance.  Data is foreseen at 7.50B from previous 7.13B.

Above data could have a positive impact on the dollar.


At 10.30am- Leading Indicators. Data is foreseen at 107.9% from previous 108.9%.

Above data could have a negative impact on the Yen.


At 2.30pm-

ECB Economic Bulletin.

Italian Industrial Production m/m. Data is foreseen at -0.2% from previous -0.2%.

All above data could have a volatile impact on the Euro.


Tentative- New Loans. Data is foreseen at 1360B from pervious 1090B.

Tentative- M2 Money Supply y/y. Data is foreseen at 10.1% from pervious 10%.

Above data could have a volatile impact on the Yuan.


At 7.00pm-

Core CPI m/m. Data is foreseen at 0.3% from previous 0.3%.

CPI m/m. Data is foreseen at 0.2% from previous 0.1%.

CPI y/y. Data is foreseen at 3.2% from previous 3.1%.

Unemployment Claims. Data is foreseen at 209K from previous 202K.

At 9.00pm- Natural Gas Storage.

Above data could have a volatile impact on the dollar

Commodity Samachar
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Also Read: BOE Gov, Crude oil inventory and more. This week just got a bit more interesting!! , The 15% Rise in Natural Gas – What’s the Story?

Recommended Read: Forex News Letter: Is the Market Vibing to the Incoming US Inflation Data?

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