Market Roundup
•Canada May Common CPI (YoY) 2.6% forecast,2.6% previous
•US May Chicago Fed National Activity 0.18,-0.23 previous
•Canada May CPI (MoM) 0.6%, 0.3% forecast, 0.5% previous
•Canada May Trimmed CPI (YoY) 2.9%, 2.8% forecast,2.9% previous
•Canada May CPI (YoY) 2.9%,2.6% forecast,2.7% previous
•Canada May Core CPI (YoY) 1.8%, 1.6% previous
•Canada May Core CPI (MoM) 0.6%, 0.2% forecast,0.2% previous
•Canada May Median CPI (YoY) 2.8%, 2.6% forecast,2.6% previous
•US Redbook (YoY) 5.3%,5.9% previous
•US Apr S&P/CS HPI Composite - 20 n.s.a. (YoY) 7.2%,7.0% forecast,7.4% previous
•US Jun Richmond Manufacturing Shipments -9, 13 previous
•US Jun CB Consumer Confidence 100.4, 100.0 forecast,102.0 previous
Looking Ahead Economic Data(GMT)
•01:00 Australia May MI Leading Index (MoM) -0.0% previous
•01:00 Australia May Weighted mean CPI (YoY) 3.80% forecast,3.60% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro eased on Tuesday as dollar was bolstered by hawkish comments from Federal Reserve officials as well as data showing a stable housing market in the world's largest economy, both suggesting that the central bank will not be in a rush to kickstart its rate-cutting cycle. Fed Governor Michelle Bowman started the ball rolling for the dollar, repeating her view on Tuesday that holding the policy rate steady "for some time" will likely be enough to bring inflation under control. She also reiterated her willingness to raise borrowing costs if needed. A report showed U.S. single-family home prices increased at a steady pace in April, rising 0.2% on the month after being unchanged in March.U.S. consumer confidence, however, slightly eased in June, with the index at 100.4 from a downwardly revised 101.3 in May, according to the Conference Board. Immediate resistance can be seen at 1.0739(38.2% fib), an upside break can trigger rise towards 1.0776(50% fib).On the downside, immediate support is seen at 1.0713(50% fib), a break below could take the pair towards 1.0687(61.8% fib).
GBP/USD: The pound traded in tight range on Tuesday investors stayed cautious ahead of economic data that could sway expectations on the path of U.S. and UK interest rates. Traders largely refrained from placing big bets ahead of the U.S. personal consumption expenditure data (PCE), due Friday even as they banked on the numbers to show a renewed moderation in inflation.UK gross domestic product (GDP) is also due this week and could potentially add to Bank of England (BoE) policymakers' confidence for an interest rate cut in August.Comments from BoE officials last week had revived some hopes for an August cut, which were partially tempered by a strong retail sales reading on Friday.Adding to caution is London's political landscape, with the parliamentary elections on July 4. Immediate resistance can be seen at 1.2713(38.2%fib), an upside break can trigger rise towards 1.2772(23.6%fib).On the downside, immediate support is seen at 1.2659(50%fib), a break below could take the pair towards 1.2615(61.8% fib).
USD/CAD: The Canadian dollar was little changed against its broadly stronger U.S. counterpart on Tuesday, as investors priced in a less than even chance the Bank of Canada would cut interest rates next month after hotter-than-expected inflation data.Canada's annual inflation rate unexpectedly accelerated to 2.9% in May from 2.7% in April while key measures of core inflation edged up for the first time in five months . Investors see a 45% chance that the BoC will cut rates at its next policy decision on July 24, down from 65% before the inflation report, swaps market data showed.Earlier this month, the BoC became the first G7 central bank to begin easing, lowering its benchmark rate by 25 basis points to 4.75%.The Canadian dollar was trading nearly unchanged at 1.3650 per U.S. dollar, or 73.26 U.S. cents, after trading in a range of 1.3632 to 1.3680.Immediate resistance can be seen at 1.3667(50% fib), an upside break can trigger rise towards 1.3699 (61.8% fib).On the downside, immediate support is seen at 1.3629(38.2% fib), a break below could take the pair towards 1.3586(23.6% fib).
USD/JPY: The dollar eased against yen on Tuesday as fears of intervention from Japanese officials deterred traders from punishing the yen too severely against other greenback . The dollar was last 0.1% lower at 159.49 yen , clinging to a tight range, as traders remained wary of testing the key resistance level that had prompted a 9.79 trillion yen ($61.33 billion) currency intervention from Tokyo in late April and early May. Decline in the yen has come on the back of the Bank of Japan's (BOJ) June policy meeting, where policymakers disappointed investors who were betting on an immediate reduction of the BOJ's massive bond purchases. Strong resistance can be seen at 159.09(23.6%fib), an upside break can trigger rise towards 159.55(Higher BB).On the downside, immediate support is seen at 157.83 (38.2% fib), a break below could take the pair towards 156.86 (50%fib).
Equities Recap
European shares declined on Tuesday as Airbus tumbled after a profit warning and sparked an aerospace-related sell-off, while investors focused on French parliamentary elections later in the week.
UK's benchmark FTSE 100 closed down by 0.41 percent, Germany's Dax ended down by 0.89 percent, France’s CAC finished the day down by 0.58 percent.
The Nasdaq rallied 1.3% on Tuesday, buoyed by strength in Nvidia , opens new tab and other tech megacaps, while the Dow slipped as retailers weighed and investors waited for crucial inflation data due out this week.
Dow Jones closed down by 0.76 percent, S&P 500 ended up by 0.39 percent, Nasdaq finished the day down by 1.28 percent.
Commodities Recap
Gold prices slipped on Tuesday, hurt by an uptick in the dollar and Treasury yields as investors awaited U.S. inflation data due later this week that could provide cues on the timing of interest rate cuts by the Federal Reserve this year.
Spot gold was down 0.6% at $2,318.82 per ounce by 01:50 p.m. ET (1750 GMT). U.S. gold futures settled 0.6% lower to $2,330.80.
Crude oil prices fell 1% on Tuesday as weak U.S. consumer confidence data fed worries about the economic outlook and fuel demand after a slow start to the U.S. summer driving season.
Brent futures for August settled down $1, or 1.2%, at $85.01 a barrel. U.S. crude futures settled at $80.83, down 80 cents or 1%.
