Market Roundup
• Canada Foreign Securities Purchases (Apr): 46.91B, 8.16B forecast, 4.40B previous
• US Import Price Index (MoM) (May): 1.9%, 0.9% forecast, 2.0% previous
• US Export Price Index (MoM) (May): 1.3%, 1.2% forecast, 3.5% previous
• US Housing Starts (May): 1.177M, 1.430M forecast, 1.392M previous
• US Housing Starts (MoM) (May): -15.4%, -8.5% previous
• US Building Permits (May): 1.413M, 1.420M forecast, 1.423M previous
• US Building Permits (MoM) (May): -0.7%, 4.4% previous
• US Export Price Index (YoY) (May): 11.2%, 8.8% previous
• US Import Price Index (YoY) (May): 6.7%, 4.2% previous
• CA Foreign Securities Purchases by Canadians (Apr): -11.360B, 3.860B previous
Looking Ahead Economic Data (GMT)
•00:00 Japan Trade Balance (May): -564.6B forecast, 301.9B previous
•00:00 Japan Trade Balance (May): -564.6B forecast, 301.9B previous
•00:00 Japan Exports (YoY) (May): 16.2% forecast, 14.8% previous
•00:00 Japan Adjusted Trade Balance: -0.21T forecast, 0.24T previous
•00:00 Japan Core Machinery Orders (YoY) (Apr): 9.3% forecast, 5.9% previous
•00:00 Japan Imports (YoY) (May): 12.8% forecast, 9.7% previous
•00:00 Japan Core Machinery Orders (MoM) (Apr): 2.1%, -9.4% previous
•02:00 Australia MI Leading Index (MoM) (May) 0.1% previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD : The euro edged higher against on Tuesday as investors awaited the conclusion of the Federal Reserve's policy meeting , the first chaired by Kevin Warsh. Federal Reserve's policy is expected to leave the policy rate in the 3.50%-3.75% range and to change their post-meeting statement so that it no longer suggests the Fed's next move, when it comes, will be a rate cut. An upward drift in rate-path projections in the dot plot would underscore the committee's new openness to a rate hike, even if most still do not expect it.Fed watchers reckon he’ll hold off on fully engaging on it for now given near-term economic challenges facing the Fed. The complexity of the debate may also slow turning his long-running dream into reality. Immediate resistance can be seen at 1.1675(50%fib), an upside break can trigger rise towards 1.1697(HIgherBB).On the downside, immediate support is seen at 1.1600(SMA20), a break below could take the pair towards 1.1559(50%fib).
GBP/USD: The pound regained some momentum against dollar as easing tensions in the Middle East, softer oil prices and evolving monetary policy expectations in the UK and U.S. combined to underpin sterling against the dollar. Lower energy costs could help moderate UK inflation in the coming months, reducing pressure on households and businesses while supporting expectations that the Bank of England may be able to maintain a cautious policy stance .Investors are turning their attention to Wednesday's UK inflation report for May, with a Reuters poll pointing to annual CPI growth of 3%. Labour market figures and retail sales data are also scheduled for release later in the week. Meanwhile, the Bank of England is expected to keep interest rates on hold when it announces its latest monetary policy decision on Thursday. Immediate resistance can be seen at 1.3490(50%fib), an upside break can trigger rise towards 1.3523(Higher BB).On the downside, immediate support is seen at 1.3348(SMA 20), a break below could take the pair towards1.3348(38.2%fib).
USD/CAD: The Canadian dollar held steady near a seven-month low against its U.S. counterpart on Tuesday, as a sharp decline in oil prices offset support from stronger domestic housing data.Global crude prices fell about 6% to a three-month low amid optimism that an interim U.S.-Iran peace deal could restore oil flows through the strategic Strait of Hormuz, weighing on Canada’s export-linked currency.Meanwhile, the spread between Canadian and U.S. one-year swap rates has widened by 34 basis points since May to 137 basis points in favor of the U.S., reinforcing pressure on the loonie. On the data front, Canadian home sales rose 5.5% in May from April, partially recovering after a sluggish start to the spring selling season. Immediate resistance can be seen at 1.4025(23.6% fib), an upside break can trigger rise towards 1.4060(Higher BB).On the downside, immediate support is seen at 1.3947(June 15thlow), a break below could take the pair towards 1.3895(38.2%fib).
USD/JPY: The dollar edged higher on Tuesday as the yen weakened following the Bank of Japan’s decision to raise its benchmark interest rate to a 31-year high, marking a significant step in its ongoing policy normalisation. The move, the first rate hike since December, signals the central bank’s readiness to continue tightening as it seeks to contain inflationary pressures linked to the Iran-war-driven energy shock.The BOJ’s decision aligns it more closely with other major central banks, including the European Central Bank, which have been shifting toward tighter monetary policy to rein in inflation. Deputy Governor Shinichi Uchida said the central bank remains prepared to continue raising rates, citing risks that inflation could overshoot its 2% target, even as immediate economic concerns related to the Iran conflict begin to ease. Immediate resistance can be seen at 160.85(23.6%fib) an upside break can trigger rise towards 161.06(Higher BB) .On the downside, immediate support is seen at 159.68(SMA 20) a break below could take the pair towards 159.00(Psychological level).
Equities Recap
Europe's STOXX 600 climbed to a record high on Monday, supported by a broad-based relief rally after the United States and Iran reached a preliminary agreement aimed at reopening the Strait of Hormuz and bringing an end to the three-month conflict in the Middle East.
UK's benchmark FTSE 100 closed up by 0.61percent, Germany's Dax ended up by 0.07 percent, France’s CAC finished the day up by 0.75 percent.
U.S. stocks ended mixed on Tuesday, with tech-driven losses pulling the Nasdaq and S&P 500 lower, even as the Dow notched another record close and SpaceX surged into the ranks of the five most valuable U.S. companies.
Dow Jones closed up by 0.64% percent, S&P 500 closed down by 0.57 % percent, Nasdaq settled down by 1.15 % percent.
Commodities Recap
Gold advanced by more than 1% on Tuesday, supported by reduced expectations of a Federal Reserve interest-rate increase this year following a U.S.-Iran accord that helped push oil prices down and cool inflation worries.
Spot gold was up 0.8% at $4,338.86 per ounce as of 1:55 p.m. ET (1755 GMT). Prices touched their highest level since June 5 in the previous session.U.S. gold futures for August delivery settled around 0.1% higher at $4,354.4.
Oil prices tumbled about 5% for a second consecutive session on Tuesday, hitting their lowest level in three months as further details emerged on an interim Middle East peace deal, including provisions to reopen the Strait of Hormuz and allow Iran to resume oil exports.
Brent crude futures fell $4.21, or 5.1%, to settle at $78.96 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $4.70, or 5.8%, to settle at $76.05.
