Market Roundup
•German May Unemployment n.s.a. 2.723M,2.750M previous
•German May Unemployment Change 25K,7K forecast,10K previous
•German May Unemployment 2.762M ,2.732M previous
•German May Unemployment Rate 5.9%,5.9% forecast,5.9% previous
Looking Ahead Economic Data(GMT)
•14:00 GlobalDairyTrade Price Index 3.3% previous
•14:00 US Total Vehicle Sales 15.80M forecast,15.74M previous
•14:00 US IBD/TIPP Economic Optimism 45.2 forecast,41.8 previous
•14:00 US Milk Auctions 3,861.0 previous
•14:00 US Total Vehicle Sales 15.80M forecast,15.74M previous
•14:00 US Apr JOLTs Job Openings 8.370M forecast,8.488M previous
•14:00 US Apr Dallas Fed PCE 2.90% previous
•14:00 US Factory Orders (MoM) 0.7% forecast,1.6% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro dipped on Tuesday as investors refrained from taking position before the European Central Bank's interest rate decision later this week. All eyes are now on the ECB's interest rate decision on Thursday, where the central bank is expected to cut borrowing costs by 25 basis points (bps) from record-high levels, according to a poll. Market participants anticipate rate cuts owing to the encouraging signs of easing inflation in the region. However, the May inflation reading ticking higher has cast doubts on the number of rate cuts this year. The euro was last down 0.4% at $1.0863 on Tuesday. It climbed 0.5% as the dollar dropped on Monday. Immediate resistance can be seen at 1.0919(23.6%fib), an upside break can trigger rise towards 1.0940(Higher BB).On the downside, immediate support is seen at 1.0877(38.2% fib), a break below could take the pair towards 1.0848(50% fib).
GBP/USD: Sterling declined against dollar on Tuesday as risk-off mood set in as market participants awaited the ECB's rate verdict on Thursday, where it is expected to ease borrowing costs by 25 basis points.The recent uptick in the euro zone inflation data, however, has cast doubt on further monetary easing prospects this year. Analysts predict the Bank of England (BoE) will closely shadow the ECB's movements. However, traders have priced in a 25-basis-point cut by the BoE only in November. Sterling hit its highest since mid-March too at $1.2818 before falling to sit 0.43% lower. Immediate resistance can be seen at 1.2817 (23.6%fib), an upside break can trigger rise towards 1.2856(38.2% fib).On the downside, immediate support is seen at 1.2734(38.2%fib), a break below could take the pair towards 1.2668(50% fib).
USD/CHF: The dollar dipped against the Swiss franc on Tuesday after data showed Switzerland’s inflation rate remained unchanged in May . Consumer prices in Switzerland increased by 1.4% in May compared to the same month last year, according to the country’s statistics office on Tuesday. This rise aligns with economists’ forecasts and mirrors the rate observed in April. On a monthly basis, consumer prices increased by 0.3 percent, driven by several factors such as rising costs for housing rentals and international package holidays. While the prices of various fresh vegetables and petrol saw increases, the prices for heating oil and foreign red wine decreased in May. Immediate resistance can be seen at 0.8994(23.6% fib), an upside break can trigger rise towards 0.9036 (June 3rd high).On the downside, immediate support is seen at 0.8920(38.2% fib), a break below could take the pair towards 0.8867(50% fib).
USD/JPY: The U.S. dollar dipped against yen on Tuesday as Bank of Japan officials warned they are keeping a close eye on the currency. Bank of Japan Deputy Governor Ryozo Himino said on Tuesday the central bank must be "very vigilant" to the impact the yen's fluctuations could have on inflation in guiding monetary policy.Bloomberg reported that the BOJ will discuss slowing its bond purchases at its two-day policy meeting next week.The U.S. job openings and labour turnover survey (JOLTS) is due out at 1400 GMT, or 10 a.m. ET, and will show the number of vacancies in May. It will also report on the number of people voluntarily quitting their job. U.S. currency was down 0.6% at 155.105, around its weakest in two weeks. Strong resistance can be seen at 156.77(23.6%fib), an upside break can trigger rise towards 157.69(Higher BB).On the downside, immediate support is seen at 154.90(38.2% fib), a break below could take the pair towards 153.30 (50%fib).
Equities Recap
European shares slipped on Tuesday as weakness in crude prices dragged energy stocks, while investors refrained from placing huge bets before the European Central Bank's interest rate decision later this week.
UK's benchmark FTSE 100 was last down by 0.23 percent, Germany's Dax was last down by 0.56 percent, France’s CAC was last down by 0.25 percent.
Commodities Recap
Gold dropped 0.9% to $2,330 an ounce, while copper , which hit record-highs last month, fell 1.6% to $9,979 a tonne.
Oil prices fell more than $1 on Tuesday on scepticism about an OPEC+ decision to boost supply later this year into a global market where demand has already shown signs of weakness.
Extending losses from a four-month low in the previous session, Brent crude futures fell $1.13, or 1.4%, to $77.23 a barrel at 1210 GMT. Brent on Monday closed below $80 for the first time since Feb. 7, after falling more than 3%.
