Market Roundup
•US March Durables Excluding Defense (MoM) 1.2%, -2.6% previous
•US March Core Durable Goods Orders (MoM) 1.1%, 0.6% forecast,-0.6% previous
•US March Durable Goods Orders (MoM) 0.8%,1.0% forecast,-2.1% previous
•US March Goods Orders Non Defense Ex Air (MoM) 1.0%,0.5% forecast,-0.2% previous
•US Redbook (YoY) 12.7%,15.2% previous
•US Feb House Price Index (MoM) 1.6% previous
•US Feb House Price Index 381.4, 373.3 previous
•US Feb S&P/CS HPI Composite - 20 n.s.a. (YoY) 20.2%,19.0% forecast, 19.1% previous
•US Feb S&P/CS HPI Composite - 20 s.a. (MoM) 2.4%,1.5% forecast,1.8% previous
•Canada Manufacturing Sales (MoM) 1.7%,4.2% previous
•US March New Home Sales (MoM) -8.6%,-2.0% previous
•US March New Home Sales 763K, 765K forecast, 772K previous
•US April Richmond Services Index 13,9 previous
•US April CB Consumer Confidence 107.3,108.0 forecast, 107.2 previous
•US April Texas Services Sector Outlook 8.2,10.6 previous
•US April Dallas Fed Services Revenues 11.2,23.4 previous
Looking Ahead Economic Data (GMT)
•1:00 Australia Weighted mean CPI (YoY) (Q1) 3.3%forecast, 2.7% previous
•1:00 Australia CPI (QoQ) (Q1) 1.7% forecast, 1.3% previous
•1:00 Australia Trimmed Mean CPI (QoQ) (Q1) 1.2% forecast, 1.0% previous
•1:00 Australia CPI (YoY) (Q1) 4.6% forecast, 3.5% previous
Looking Ahead - Events, Other Releases (GMT)
•No events ahead
Fxbeat
EUR/USD: The euro declined against dollar on Monday as concerns about the impact on the global economy of pandemic restrictions in China weighed on euro. Investors focused on monetary policy expectations ahead of the Federal Reserve meeting next week while also watching for European Central Bank officials' signals. Money markets continue to price in more than 80 bps of ECB interest rate rises by year-end, amid new hawkish comments from central bank officials. The euro slid 0.9%, near the session's trough and its weakest level since the initial COVED panic of March 2020. The euro fell 0.63% to $1.0644, the lowest since March 2020. Immediate resistance can be seen at 1.0735(38.2%fib), an upside break can trigger rise towards 1.0787 (11DMA).On the downside, immediate support is seen at 1.0628 (23.6%fib), a break below could take the pair towards 1.0577 (Lower BB).
GBP/USD: Sterling held near its lowest levels since 2020 on Tuesday against a broadly firm dollar, with worries about Britain's economic outlook exacerbated by latest debt numbers and fears that COVID-19 restrictions in China will hurt world growth. Data on Tuesday showed British government borrowing in the recently ended 2021/22 financial year was almost 20% higher than forecast by the country's budget office last month. Sterling was down 0.25% at $1.2702 at 1005 GMT, after falling on Monday below $1.27 for the first time since September 2020.Immediate resistance can be seen at 1.2691(38.2%fib), an upside break can trigger rise towards 1.2753(5DMA).On the downside, immediate support is seen at 1.2561(23.6%fib), a break below could take the pair towards 1.2500(Psychological level).
USD/CAD: The Canadian dollar weakened to a six-week low against its U.S. counterpart on Tuesday, as rising uncertainty about the global economic outlook contributed to financial market volatility and broad-based gains for the safe-haven U.S. currency. Equity markets globally fell as China's COVID-19 curbs and fears of aggressive U.S. Federal Reserve interest rate hikes continued to damp risk appetite and lifted the U.S. dollar to new two-year highs against a basket of major currencies. The price of oil, one of Canada's major exports, settled 3.2% higher at $101.70 a barrel as the market turned attention to China's plans to support its economy. The Canadian dollar was trading 0.6% lower at 1.2805 to the greenback. Immediate resistance can be seen at 1.2850 (Higher BB), an upside break can trigger rise towards 1.2882 (23.6%fib).On the downside, immediate support is seen at 1.2797 (38.2%fib), a break below could take the pair towards 1.2729(50%fib).
USD/JPY: The dollar dipped against the Japanese yen on Tuesday , on what appeared to be short-covering before the Bank of Japan concludes its two-day meeting on Thursday. Investors will be watching to see if the BOJ makes any changes to its yield curve control policy. Japanese Prime Minister Fumio Kishida on Tuesday urged the central bank to maintain its ultra-loose monetary policy, brushing aside the idea of using interest rate hikes to prevent further declines in the yen. The Japanese yen also rebounded as investors speculated that the Japanese central bank or government may act to stabilise the currency, which last week hit a 20-year low against the dollar. Strong resistance can be seen at 129.29(23.6%fib), an upside break can trigger rise towards 129.94(Higher BB).On the downside, immediate support is seen at 127.07(38.2%fib), a break below could take the pair towards 126.66 (14DMA).
Equities Recap
European shares extended losses for a third session on Tuesday, giving up earlier gains as technology stocks followed U.S. peers into the red ahead of earnings from some big names, while London's FTSE outperformed on a commodities boost.
UK's benchmark FTSE 100 closed up by 0.08 percent, Germany's Dax ended down by 1.20 percent, France’s CAC finished the day down by 0.54 percent.
Wall Street ended sharply lower on Tuesday, with the Nasdaq closing at its lowest since December 2020 as investors worried about slowing global growth and a more aggressive Federal Reserve.
Dow Jones closed down by 2.89% percent, S&P 500 closed down by 2.81% percent, Nasdaq settled down by 3.95% percent.
Treasuries Recap
Treasury yields slipped on Tuesday as uncertainties surrounding the war in Ukraine and the Federal Reserve's efforts to bring down inflation kept investors cautious about the future despite better-than-exepected economic data.
The yield on benchmark 10-year Treasury notes slid 8.4 basis points to 2.743%, while yields on three-month bills to 30-year bonds were all lower in early U.S. trade.
Commodities Recap
Oil prices settled higher on Tuesday, rebounding in volatile trading as the market weighed China's plans to support its economy against a possible coronavirus lockdown in its capital Beijing.
Brent crude futures settled up $2.67, or 2.6%, at $104.99 a barrel, while U.S. West Texas Intermediate contracts were up $3.16, or 3.2%, at $101.70.
Gold rose on Tuesday, recovering slightly from a retreat to an over one-month trough in the last session, as investors sought cover from fears of stalling global growth and soaring inflation.
Spot gold rose 0.4% to $1,904.36 per ounce by 10:40 a.m. ET (1440 GMT). Prices popped back above the key $1,900 level, after falling to $1,890.20 on Monday - its lowest since March 29.U.S. gold futures gained 0.3% to $1,902.30.
