Market Roundup
•Canada Jun Trade Balance 0.64B, -2.00B forecast,-1.93B previous
•US Jun Imports 339.00B,336.70B previous
•US Jun Exports 265.90B,261.70B previous
•US Jun Trade Balance -73.10B, -72.50B forecast,-75.10B previous
•Canada Jun Exports 66.65B, 62.45B previous
•Canada Jun Imports 66.01B ,64.37B previous
•US Aug IBD/TIPP Economic Optimism 44.5, 45.0 forecast,44.2 previous
Looking Ahead Economic Data(GMT)
•23:50 Japan Jul Foreign Reserves (USD) 1,231.5B previous
•03:00 China Jul Trade Balance 693.00B forecast, 703.73B previous
•03:00 China Jul Exports (YoY) 9.7% forecast, 8.6% previous
•03:00 China Jul Imports (YoY) 3.5% forecast,-2.3% previous
•03:00 China Trade Balance (USD) 97.50B ,99.05B previous
•05:00 Japan Jun Leading Index (MoM) ) 0.3% previous
Looking Ahead Events And Other Releases(GMT)
Currency Summaries
EUR/USD: The euro declined on Tuesday as investor nerves appeared to be soothed after Federal Reserve policymakers pushed back against fears of a recession. Fed San Francisco President Mary Daly said she was more confident U.S. inflation is headed toward the Fed's 2% goal.However, traders were wary of making big bets as they were still reassessing the impact of the pullback and were waiting for a fresh catalyst to see the bullish appetite take hold. With a light data week in Europe, investors will focus on more commentary from Europe Central bank and Fed officials later in the week to gauge the mood of both central banks. Immediate resistance can be seen at 1.0977(23.6%fib), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0903(38.2%fib), a break below could take the pair towards 1.0839(50%fib).
GBP/USD: The pound resumed its decline against the dollar on Tuesday, falling to a five-week low, and steadied on the euro as markets calmed down after the previous day's sharp swings.Sterling was last down 0.6% against the dollar at $1.2699, its lowest since July 3. It has fallen around 2.6% from its mid-July peak a fraction above $1.30, as traders trimmed their long positions into the Bank of England's rate cut last week .Markets have increased their expectations of Federal Reserve rate cuts substantially and now see over 100 basis points of easing across the Federal Reserve's three meetings this year. That compares with less than 50 bps of further cuts expected from the Bank of England. Immediate resistance can be seen at 1.2749(38.2%fib), an upside break can trigger rise towards 1.2851762(23.6%fib).On the downside, immediate support is seen at 1.2671(50%fib), a break below could take the pair towards 1.2589(61.8%fib).
USD/CAD: The Canadian dollar extended its recovery from a near two-year low against its U.S. counterpart on Tuesday after economic data showed Canada posting a surprise trade surplus in June. Canada recorded a trade surplus of C$638 million ($461 million) in June, mainly led by a jump in shipments of crude oil from the recently expanded Trans Mountain Pipeline. Analysts had forecast a C$1.84 billion trade deficit.The price of oil was trading 0.5% higher at $73.30.Separate data showed that Canada's services economy deteriorated in July as activity and new business declined.The loonie was trading 0.1% higher at 1.3786 to the U.S. dollar, after moving in a range of 1.3762 to 1.3852.Immediate resistance can be seen at 1.3804(38.2% fib), an upside break can trigger rise towards 1.3865(23.6% fib).On the downside, immediate support is seen at 1.3765(50% fib), a break below could take the pair towards 1.3716 (61.8% fib).
USD/JPY: The dollar strengthened against the yen on Tuesday as some of the most striking moves of recent days reversed somewhat, and a hint of calm returned to markets. The yen's recent gains were driven by an uptick in volatility causing investors to bail out of once popular carry trades, reinforced by the Bank of Japan raising interest rates on Friday. The dollar was last at 144.50 yen, up 0.3% on the day, the first day it has traded higher on the Japanese currency this month, but still down 10 yen in the past week. Strong resistance can be seen at 146.67(38.2 %fib), an upside break can trigger rise towards 148.78 (50%fib). On the downside, immediate support is seen at 143.70(23.6%fib), a break below could take the pair towards 140.90 (Daily low).
Equities Recap
European shares rose on Tuesday, mirroring a recovery in global markets after the previous day's mauling, with energy and technology stocks leading the way as a slew of upbeat corporate earnings also lifted sentiment.
UK's benchmark FTSE 100 closed up by 0.23 percent, Germany's Dax ended up by 0.09 percent, France’s CAC finished the day down by 0.27 percent.
The S&P 500 and Nasdaq ended 1% higher on Tuesday as investors jumped back into the market a day after a dramatic sell-off, with recent comments by Federal Reserve officials easing U.S. recession worries.
Dow Jones closed up by 0.76 percent, S&P 500 ended up by 1.04 percent, Nasdaq finished the day up by 0.98 percent.
Commodities Recap
Gold prices eased on Tuesday on dollar strength and higher bond yields, although expectations of a U.S. rate cut in September and escalating geopolitical tensions in the Middle East kept bullion stable following last session's sharp retreat.
Spot gold fell 0.6% at $2,393.98 per ounce by 2:43 p.m. ET (1843 GMT). The metal fell 1.5% in the previous session, driven by global sell-off as fears of the U.S. tipping into recession lingered.
U.S. gold futures settled 0.5% lower to $2,431.60.
Oil prices settled higher on Tuesday, bouncing off multi-month lows hit in the previous session, as investor attention turned to supply tightness and financial markets recovered from their recent slump.
Brent crude futures rose by 18 cents, or 0.2% to settle at $76.48 a barrel. U.S. West Texas Intermediate futures gained 26 cents, or 0.4%, to close at $73.20 per barrel. Both benchmarks broke a three-session declining streak.
