For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
Gold slumps ahead of Trump’s budget proposal
On Monday, the yellow metal declined, drifting away from the $1,300 mark hit on the back of a dismal jobs report, while traders looked ahead to retail sales data as well as American leader’s 2020 budget proposal.
On the Comex exchange, April delivery gold futures rallied by 0.35% being worth $1,294.75 a troy ounce.
On Friday, the yellow metal briefly broke the psychological mark of $1,300 after the US Labor Department posted a 20,000-job leap in nonfarm payrolls in February, which is far fewer than the consensus estimate of 180,000. Gold failed to stay above that mark for the settlement and fell short of the mark again, with an intraday maximum of $1,299.15.
Financial markets will closely watch the latest outcome of American retail sales, generally anticipated to stand still after a suddenly steep dive at the end of last year.
Meanwhile, Donald Trump is anticipated to come up with his 2020 budget proposal. It has been reported that US leader offers a 5% cut in non-defense spending and also requests an extra $8.6 billion to finance the construction of a wall on the border with Mexico.
In addition to this, market participants will also closely watch inflation figures after the US key financial institution vowed to be patient and wait for more data before increasing interest rates once again. Additionally, data on American consumer as well as producer prices are scheduled to be uncovered on respectively Tuesday and Wednesday.
On Saturday, Fed Chair Jerome Powell told that the US major bank won’t hurry to change interest rates. Instead, it will proceed with monitoring the world’s economy.
Aside from that, silver futures went down by 0.30% trading at $15.303 a troy ounce.
Copper futures rallied by 0.19% concluding the trading session at $2.899 a pound.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on November 5, 14:30 GMT+2.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on October 8, 15:30 GMT+3.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.