Commodity Traders To Monitor Key Indicators For Favourable Trade

In the past fortnight, the commodity market oscillated between gains and losses, driven by statements from some FOMC officials emphasising a "higher-for-longer" approach to monetary policy, juxtaposed with softer economic data from the US supporting arguments for the Federal Reserve to start monetary easing this year.

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The US dollar exhibited volatility, ranging between 104.8 and 105.7, reflecting mixed signals regarding the US economy alongside predominantly hawkish remarks from Fed officials. These comments reiterated the intention to maintain higher interest rates to curb inflation towards the central bank's 2 per cent target. Additionally, continuing claims, serving as a proxy for unemployment benefit recipients, saw a significant increase to 1.79 million, the most substantial rise in a month. The weak labour report fueled expectations of a rate cut in September, prompting gains across global equities. However, concerns about a US economic slowdown and heightened short-term inflation expectations moderated enthusiasm for riskier assets.