Market Roundup
•Canada Apr RMPI (YoY) 3.1%,0.8% previous
•Canada Apr IPPI (YoY) 1.4%,-0.5% previous
•Canada Apr RMPI (MoM) 5.5%,3.1% forecast,4.7% previous
•Canada Apr IPPI (MoM) 1.5%,0.8% forecast,0.8% previous
•US Mar House Price Index (MoM) 0.1%, 0.5% forecast,1.2% previous
•US Mar S&P/CS HPI Composite - 20 n.s.a. (YoY) 7.4%,7.3% forecast,7.3% previous
•US Mar S&P/CS HPI Composite - 20 n.s.a. (MoM) 1.6%,0.9% previous
•US House Price Index 423.4,423.0 previous
•US May CB Consumer Confidence 102.0,96.0 forecast,97.0 previous
•US 6-Month Bill Auction 5.170% , 5.160% previous
•US 3-Month Bill Auctio 5.255% , 5.245% previous
•US May Dallas Fed Mfg Business Index -19.4,-14.5 previous
Looking Ahead Economic Data(GMT)
•01:00 New Zealand May ANZ Business Confidence 14.9 previous
•01:00 Australia Apr MI Leading Index (MoM) -0.1% previous
•01:00 New Zeland May NBNZ Own Activity 14.3% previous
•01:30 Australia Weighted mean CPI (YoY) forecast, 3.40%, 3.50% previous
•01:30 Australia Construction Work Done (QoQ) (Q1) 0.6% forecast, 0.7% previous
Looking Ahead Events And Other Release(GMT)
•No Events ahead
Currency Summaries
EUR/USD: The euro eased slightly on Tuesday after dovish comments from European Central Bank (ECB) policymakers.ECB's Francois Villeroy de Galhau confirmed market expectations that, barring major surprises, a first rate cut next week is a done deal. But investors have recently updated their bets on future ECB moves, pricing in less than a cut in every quarter in 2024 and early 2025.German inflation data due on Wednesday and the wider euro zone's reading on Friday will be watched for clues on how soon easing from the central bank could come.All of that data, however, will be a sideshow to the main focus for markets on Friday when the U.S. core personal consumption expenditures (PCE) price index report the Federal Reserve's preferred measure of inflation - is released. Expectations are for it to hold steady on a monthly basis. Immediate resistance can be seen at 1.0879(23.6%fib), an upside break can trigger rise towards 1.0917(Higher BB).On the downside, immediate support is seen at 1.0800 (38.2% fib), a break below could take the pair towards 1.0738(50% fib).
GBP/USD: The pound hit a fresh two-month high against the dollar as expectations as Bank of England (BoE) rate cuts and growing investor risk appetite supported the British currency. Market focus this week will be on comments from BoE Governor Bailey on Thursday for more insights into the timing of the central bank's first interest rate cut. Market focus this week will be on comments from BoE Governor Bailey on Thursday for more insights into the timing of the central bank's first interest rate cut.Traders are pricing in a 50% chance of the first rate cut in September, with a cut fully priced in only in November. Sterling was flat at $1.2768 after hitting $1.2783 earlier in the session, its highest level since March 21.Immediate resistance can be seen at 1.2793(23.6%fib), an upside break can trigger rise towards 1.2817(Higher BB).On the downside, immediate support is seen at 1.2764(Daily low), a break below could take the pair towards 1.2704(38.2% fib).
USD/CAD : The Canadian dollar edged lower against its U.S. counterpart on Tuesday as investors awaited domestic GDP data this week that could guide expectations for Bank of Canada interest rate cuts.Canadian gross domestic product data, due on Friday, is expected to show the economy expanding at an annualized rate of 2.2% in the first quarter. That would be slower than the 2.8% pace that the Bank of Canada forecast in April. The loonie was trading 0.1% lower at 1.3645 to the U.S. dollar, after earlier touching its strongest level since last Tuesday at 1.3615.The price of oil, one of Canada's major exports, rose on the expectation that OPEC+ will maintain crude supply curbs at its June 2 meeting. U.S. crude oil futures settled 2.7% higher at $79.83 a barrel. Immediate resistance can be seen at 1.3652(38.2%fib), an upside break can trigger rise towards 1.3712 (23.6%fib).On the downside, immediate support is seen at 1.3614 (50%fib), a break below could take the pair towards 1.3595(23.6%fib).
USD/JPY: The U.S. dollar steadied against yen on Tuesday but remained in tight range ahead of key inflation data from major economies this week that could inform the global interest rate outlook. U.S. economic data was better than expected in the first quarter and so far there are no major signs of deterioration in areas such as the labor market, which some traders are waiting on before taking a more bearish view on the greenback.Concerns that inflation will remain stubbornly above the Fed’s target for longer are also providing some support for the U.S. currency. Tuesday’s data showed that worries about inflation persisted and many households expected higher interest rates over the next year. The greenback gained 0.18% against the Japanese yen to 157.15 yen. Strong resistance can be seen at 157.40(23.6%fib), an upside break can trigger rise towards 157.89(Higher BB).On the downside, immediate support is seen at 155.77(50% fib), a break below could take the pair towards 155.00(Psychological level).
Equities Recap
European shares fell in broad-based declines on Tuesday in the lead-up to crucial inflation prints around the world this week, while cautious commentary from Federal Reserve officials further dented sentiment.
The UK's benchmark FTSE 100 closed up by 0.76 percent, Germany's Dax ended down by 0.40 percent, and France’s CAC finished the down by 0.9 of percent.
U.S. trading on Tuesday moved to a shorter settlement cycle for securities transactions, putting investors and regulators on alert for increased trade failures and other hiccups in the world's largest financial market.
Dow Jones was down by 0.55 percent, S&P 500 was up 0.02 percent, Nasdaq was up by 0.95 percent.
Commodities Recap
Gold prices gained on Tuesday, helped by a weaker dollar as investors look forward to U.S. inflation data due later this week for more clarity on interest rate cut timings.
Spot gold was up 0.3% at $2,357.44 per ounce by 1:55 p.m. ET (1755 GMT). U.S. gold futures settled 0.9% higher at $2,356.5.
Oil prices gained more than $1 a barrel on Tuesday on the expectation that OPEC+ will maintain crude supply curbs at its June 2 meeting, while the start of U.S. summer driving season and a weaker dollar also boosted the commodity.
Brent crude futures for July delivery settled up $1.12, or 1.4% at $84.22 a barrel. U.S. crude ended at $79.83 a barrel, gaining $2.11, or 2.7% from Friday's close, having traded through Monday's U.S. mark Memorial Day holiday without a settlement.
