Market Roundup
•US Apr Building Permits (MoM) 20.5%,4.9% forecast, -11.7% previous
•US Redbook (YoY) 5.5%, 5.8% previous
• US 52-Week Bill Auction 4.915%,4.895% previous
Looking Ahead - Economic data (GMT)
•01:30 China May PPI (YoY) -1.5% forecast, -2.5% previous
•01:30 China May CPI (MoM) 0.0% forecast, 0.1% previous
•01:30 China May CPI (YoY) 0.4% forecast, 0.3% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro declined further lower on Tuesday a day after the announcement of a snap election in France had driven them lower, while investor attention began to turn to the double whammy of U.S. inflation data and a Federal Reserve meeting on Wednesday. The far-right National Rally was forecast on Monday to win a snap election in France but fall short of an absolute majority in the first opinion poll published after President Emmanuel Macron's shock decision to dissolve parliament.The euro was down 0.38 percent at $1.0735 . Immediate resistance can be seen at 1.0781(Daily high), an upside break can trigger rise towards 1.0809(38.2% fib).On the downside, immediate support is seen at 1.0731 (50% fib), a break below could take the pair towards 1.0671(61.8% fib).
GBP/USD: The pound was roughly unchanged against the dollar on Tuesday as investors await U.S. inflation data and the outcome of the Federal Reserve's policy meeting. Britain's labour market showed more signs of cooling in April as the unemployment rate rose, an awkward development for Prime Minister Rishi Sunak ahead of the July 4 election, despite another month of robust wage growth. The jobless rate for the three months to April rose to 4.4% from 4.3% between January and March, the highest reading since the three months to September 2021, the Office for National Statistics said on Tuesday.. Immediate resistance can be seen at 1.2790(23.6%fib), an upside break can trigger rise towards 1.2823(Higher BB).On the downside, immediate support is seen at 1.2704(38.2%fib), a break below could take the pair towards 1.2629(50% fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Tuesday but was trading not far off its weakest level in nearly two months, as oil prices rose and investors awaited a Federal Reserve interest rate decision. The U.S. central bank is expected to leave interest rates unchanged at the conclusion of a two-day policy meeting on Wednesday.The price of oil, one of Canada's major exports, settled 0.2% higher at $77.90 a barrel as the U.S. EIA raised its world oil demand growth forecast for the year.The loonie was trading 0.1% higher at 1.3750 to the U.S. dollar, or 72.73 U.S. cents, after touching its weakest intraday level since April 19 at 1.3791.Immediate resistance can be seen at 1.3766 (23.6% fib), an upside break can trigger rise towards 1.3782(Higher BB).On the downside, immediate support is seen at 1.3715(38.2% fib), a break below could take the pair towards 1.3672 (50% fib).
USD/JPY: The U.S. dollar eased against yen on Tuesday as investors awaited Bank of Japan meeting this week. the Bank of Japan will conclude its two-day meeting on Friday, which economists expect to result in the central bank starting to taper its monthly bond purchases.The BOJ and the Japanese government are aligned on trying to limit yen weakness from scuppering a sought-after cycle of mild inflation and steady wage increases. The dollar was little changed on the day against the Japanese currency at 157.20 yen .The yen's plunge to a 34-year low of 160.245 per dollar at the end of April sparked several rounds of official Japanese intervention to the tune of 9.79 trillion yen. Strong resistance can be seen at 157.56(23.6%fib), an upside break can trigger rise towards 157.93(Higher BB).On the downside, immediate support is seen at 156.23(38.2% fib), a break below could take the pair towards 154.94 (50%fib).
Equities Recap
European shares closed lower on Tuesday, with banks across the continent falling as investors fretted over political uncertainties in France while bracing for the U.S. Federal Reserve's monetary policy meeting later in the week.
UK's benchmark FTSE 100 closed down by 0.98percent, Germany's Dax ended up by 0.66 percent, France’s CAC finished the day down by 1.33 percent.
The Nasdaq and the S&P 500 rose on Tuesday to end at all-time highs, reversing early losses as investors prepared for upcoming inflation data and the U.S. Federal Reserve's policy meeting.
Dow Jones closed down by 0.31 percent, S&P 500 ended up by 0.27 percent, Nasdaq finished the day up by 0.88 percent.
Commodities Recap
Gold prices edged up on Tuesday despite an uptick in the U.S. dollar as investors awaited key U.S. inflation data and the conclusion of the U.S. Federal Reserve's two-day monetary policy meeting on Wednesday.
Spot gold rose about 0.1% to $2,312.70 per ounce by 1808 GMT. U.S. gold futures settled mostly unchanged at $2,326.60.
Oil prices settled slightly higher on Tuesday as the U.S. Energy Information Administration (EIA) raised its global oil demand growth forecast for the year, while OPEC stuck to its forecast for relatively strong growth in 2024.
Brent crude futures rose 29 cents, or 0.4%, to $81.92 a barrel, continuing a sharp recovery as fears of oversupply have ebbed since Brent closed at $77.52 a week earlier, its lowest since February.
U.S. West Texas Intermediate (WTI) crude futures gained 16 cents, or 0.2%, to settle at $77.90.
