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The dollar strengthened pound on Wednesday after data showed a sharp drop in UK inflation, fuelling speculation that the Bank of England will cut interest rates. With unemployment claims on the horizon, what’s the consensus.
UK inflation fell to its lowest level in more than two years in November, prompting investors to fully price in a BoE rate cut by May 2024 and give an almost 50% chance of a rate cut by March.
The US dollar index, which tracks rates against six other currencies, rose 0.18% to 102.326.
Crude oil rebounded for a third straight day as threats to Red Sea shipping from Yemen’s Houthi militant group added to geopolitical risk, even as a report showed a rise in US oil inventories. U.S. crude inventories rose by 2.909 million barrels in the week ended Dec. 15, compared with market expectations of 2.283 million barrels, data from the EIA Petroleum Status Report showed.
Gold prices struggled to gain direction ahead of a shower of economic data later in the week that could provide new clues about the direction of the US Federal Reserve and monetary policy. Copper prices rose to their highest level in more than four and a half months on Chinese stockpiles and stronger physical demand, but a stronger dollar weighed on the market.
MCX gold futures were down 0.20% at 62775. Silver was up 0.86% ​​at 76516. Copper settled at 725.95. Crude oil up to 6174, 0.11%. Natural gas fell 0.53% percent to 206.2.
Economic data and events scheduled – Will The Unemployment claims data give today’s market direction?
UK
At 12.30pm- Public Sector Net Borrowing. Data is foreseen at 11.8B. Previous was at 14.0B.
At 4.30pm- CBI Realized Sales. Data is foreseen at -12.00 from previous -11.00.
Above data could have a negative impact on the pound.
Canada
At 7.00pm-
Core Retail Sales m/m. Data is foreseen at 0.4% from previous 0.2%.
Retail Sales m/m. Data is foreseen at 0.7% from previous 0.6%.
Above data could have a positive impact on the Canadian dollar.
U.S.–
At 7.00pm-
Final GDP q/q. Data is foreseen at 5.2% from previous 5.2%.
Unemployment Claims. Data is foreseen at 215k from previous 202k.
Final GDP Price Index q/q. Data is foreseen at 3.6% from previous 3.6%.
Philly Fed Manufacturing Index. Data is foreseen at -3.4 from previous -5.9.
At 8.30pm- CB Leading Index m/m. Data is foreseen at -0.4% from previous -0.8%.
At 9.00pm- Natural Gas Storage. Previous was at -55B.
Above data could have a volatile impact on the dollar.
Commodity Samachar
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Also Read: Silver seems to attract buyers in the near future , UK CPI and US consumer confidence will be closely watched today
Recommended Read: Forex News Letter : Profits in Gold and Silver. What’s next for traders?
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