FxWirePro: GBP/NZD grinding higher as frustrated shorts pare back after mixed US jobs report 
Market Roundup
•US Redbook (YoY) 4.9% ,4.8% previous
•US Jun Existing Home Sales (MoM) -5.4%, -0.7% previous
•US Jul Richmond Manufacturing Index -17,-7 forecast,-10 previous
•US Jul Richmond Services Index 5, -11 previous
•US Jun Existing Home Sales 3.89M,3.99M forecast,4.11M previous
•US Jul Richmond Manufacturing Index -21,-7 forecast,-10 previous
Looking Ahead Economic Data(GMT)
•23:30 Australia Services PMI 51.2 previous
•00:30 Japan Jul Manufacturing PMI 50.5 forecast,50.0 previous
•00:30 Japan Jul Services PMI 49.4 previous
Looking Ahead Events And Other Releases(GMT)
EUR/USD: The euro eased on Tuesday as dollar held firm as traders waited for inflation data later in the week. Trading was relatively subdued in a week with little in the way of economic data until the release of U.S. personal consumption expenditure (PCE) inflation figures for June on Friday.The market reaction to U.S. President Joe Biden's decision to bow out of the election race was muted, though there was some unwinding of the so-called Trump trade, which has seen the dollar and U.S. Treasury yields ease a touch. The dollar index , which tracks the U.S. currency against six peers, rose slightly to 104.36, after falling to a four-month low of 103.64 last week. The euro was down 0.22% at $1.0868. Immediate resistance can be seen at 1.0953(23.6%fib), an upside break can trigger rise towards 1.1000 (Psychological level).On the downside, immediate support is seen at 1.0873(38.2%fib), a break below could take the pair towards 1.0813(50%fib).
GBP/USD: The pound fell slightly on Tuesday, slipping further from last week's one-year high, as investors waited for U.S. inflation data on Friday to shake up subdued currency markets. Britain has had the best performing currency against the dollar this year as stickier-than-expected services inflation data caused the Bank of England to postpone interest rate cuts, keeping yields on UK bonds at attractive levels.The Labour Party's landslide election victory on July 4 has also raised hopes among some investors for greater political stability after a chaotic few years under the Conservatives. Sterling was last 0.1% lower against the dollar at $1.2924, after hitting its highest level last week since July 2023 at $1.3044.Immediate resistance can be seen at 1.2933(Daily high), an upside break can trigger rise towards 1.2990(23.6%fib).On the downside, immediate support is seen at 1.2900(38.2%fib), a break below could take the pair towards 1.2833(50%fib).
USD/CAD: The Canadian dollar weakened for a fifth straight day against its U.S. counterpart on Tuesday as commodity prices fell and investors braced for a potential interest rate cut by the Bank of Canada. The Canadian central bank is widely expected to cut its benchmark interest rate by 25 basis points to 4.50% on Wednesday, its second cut in as many months, after recent data showed inflation easing and retail sales declining. Canada is a major producer of commodities, including oil, which fell to a six-week low on rising expectations of a ceasefire in Gaza and growing demand concerns in China.U.S. crude oil futures were down 1.9% at $76.95 a barrel, while copper added to its recent declines. The loonie was trading 0.2% lower at 1.3773 to the U.S. dollar, or 72.61 U.S. cents, after touching its weakest level since June 14 at 1.3775. It was the longest stretch of declines for the currency since April. Immediate resistance can be seen at 1.3787(38.2%fib), an upside break can trigger rise towards 1.3803 (Higher BB).On the downside, immediate support is seen at 1.3753 (50%fib), a break below could take the pair towards 1.2725 (61.8%fib).
USD/JPY: The dollar dipped against Japanese on Tuesday as investors reacted to comments from a senior Japanese politician that added to pressure on the Bank of Japan to keep hiking rates to boost the currency. Senior ruling party official Toshimitsu Motegi said overnight that the Bank of Japan should more clearly indicate its resolve to normalise monetary policy, including through steady interest rate hikes. The BOJ next sets rates on July 31.The yen has found some support on the back of Tokyo's recent bouts of intervention to prop up the currency and as traders looked to the BOJ's decision. However, most economists polled expect the BOJ to keep rates on hold at the meeting. Strong resistance can be seen at 157.20(38.2%fib), an upside break can trigger rise towards 158.40(50%fib). On the downside, immediate support is seen at 155.67 (23.6%fib), a break below could take the pair towards 154.76 (Lower BB).
Equities Recap
European shares ended a touch higher on Tuesday as a rally in technology-related shares following robust earnings from SAP helped offset declining resource-linked stocks that tracked lower commodity prices.
UK's benchmark FTSE 100 closed down by 0.38 percent, Germany's Dax ended up by 0.82 percent, France’s CAC finished the day down by 0.31percent.
Wall Street's main indexes ended slightly lower on Tuesday, having given up meager intraday gains in the final minutes of trading, as investors switched their focus to the latest earnings from Alphabet and Tesla .
Dow Jones closed down by 0.14% percent, S&P 500 closed down by 0.16% percent, Nasdaq settled down by 0.05% percent.
Commodities Recap
Gold prices edged up on Tuesday and were set to break a four-day losing streak, as investors awaited U.S. economic data due later this week for more clarity on the timing of the Federal Reserve's expected rate cut this year.
Spot gold was up 0.3% at $2,405.09 per ounce at 1810 GMT. U.S. gold futures settled 0.5% higher at $2,407.30.
Oil prices fell about 2% to a six-week low on Tuesday on rising expectations of a ceasefire in Gaza and growing concerns about demand in China.
Brent futures fell $1.39, or 1.7%, to settle at $81.01 a barrel, while U.S. West Texas Intermediate crude (WTI) closed $1.44, or 1.8%, lower at $76.96.
