SHANGHAI, Jan. 19 (SMM) – Attention should be on US’s economic data on Thursday, including API crude oil inventory from the week ending January 13, 2017, December building permits, initial jobless claims from the week ending January 13, 2017 and housing starts in December. Eurozone will release main refinancing rate in January 2017 and asset purchase on Thursday. Base metals are greatly affected by economic data recently, and market players are suggested to be wary.

Cautious Trading Advised in Base Metal, SMM Says

US’s initial jobless claims from the week ending January 13 will increase and building permits and housing starts will increase slightly in December. US Federal Reserve Chairwoman Yellen released comments on interest rate again on Thursday morning. This, combined with positive real estate data, will send US dollar index up.

Eyes should be on European Central Bank’s interest rate decision, ECB President Mario Draghi’s speech and Trump’s address on Thursday. Oil prices dropped, hurt by expectations over rising output of shale oil in US. However, API crude oil inventory and EIA crude oil inventory are expected to be lower than previous data, allowing oil prices to rise.