Market Roundup
•Spanish GDP (QoQ) (Q1)0.8%, 0.7% forecast,0.7% previous
•Spanish GDP (YoY) (Q1)2.5%,2.4% forecast,2.4% previous
Looking Ahead Economic Data(GMT)
•12:30 Canada May Common CPI (YoY) 2.6% forecast,2.6% previous
•12:30 Canada May Chicago Fed National Activity -0.23 previous
•12:30 Canada May CPI (MoM) 0.3% forecast, 0.5% previous
•12:30 Canada May Trimmed CPI (YoY) 2.8% forecast,2.9% previous
•12:30 Canada May CPI (YoY) 2.6% forecast,2.7% previous
•12:30 Canada May Core CPI (YoY) 1.6% previous
•12:30 Canada May Core CPI (MoM) 0.2% forecast,0.2% previous
•12:30 Canada May Median CPI (YoY) 2.6% forecast,2.6% previous
•12:55 US Redbook (YoY) 5.9% previous
•13:00 US Apr S&P/CS HPI Composite - 20 n.s.a. (YoY) 7.0% forecast,7.4% previous
•13:00 US Apr S&P/CS HPI Composite - 20 n.s.a. (MoM) 1.6% previous
•13:00 US Apr S&P/CS HPI Composite - 20 s.a. (MoM) 0.3% previous
•14:00 US Jun Richmond Manufacturing Shipments 13 previous
•14:00 US Jun CB Consumer Confidence 100.0 forecast,102.0 previous
•14:00 US Jun Richmond Services Index 3 previous
• 14:30 US Jun Dallas Fed Services Revenues 6.7 previous
Looking Ahead Events And Other Releases(GMT)
• 16:00 US Fed Governor Cook Speaks
•18:15 US FOMC Member Bowman Speaks
Currency Forecast
EUR/USD: The euro eased on Tuesday as French elections kept investors cautions. The far-right National Rally (RN) party looks set to win the most votes in snap parliamentary elections in the euro zone's second-biggest economy on June 30 and July 7, with a left-wing coalition called New Popular Front forecast to come second.The euro , which has come under pressure amid political turmoil in France in the wake of President Emmanuel Macron's shock snap election call earlier this month, dipped 0.1% to $1.0725, set for a monthly loss of 1%. Immediate resistance can be seen at 1.0739(38.2% fib), an upside break can trigger rise towards 1.0776(50% fib).On the downside, immediate support is seen at 1.0713(50% fib), a break below could take the pair towards 1.0687(61.8% fib).
GBP/USD: The pound traded in tight range on Tuesday investors stayed cautious ahead of economic data that could sway expectations on the path of U.S. and UK interest rates. Traders largely refrained from placing big bets ahead of the U.S. personal consumption expenditure data (PCE), due Friday even as they banked on the numbers to show a renewed moderation in inflation.UK gross domestic product (GDP) is also due this week and could potentially add to Bank of England (BoE) policymakers' confidence for an interest rate cut in August.Comments from BoE officials last week had revived some hopes for an August cut, which were partially tempered by a strong retail sales reading on Friday.Adding to caution is London's political landscape, with the parliamentary elections on July 4. Immediate resistance can be seen at 1.2713(38.2%fib), an upside break can trigger rise towards 1.2772(23.6%fib).On the downside, immediate support is seen at 1.2659(50%fib), a break below could take the pair towards 1.2615(61.8% fib).
USD/CHF: The dollar eased against Swiss franc on Tuesday as investors awaited inflation reading due later this week that could influence for clues on Federal Reserve's interest rate path. Friday's release of the personal consumption expenditures index, the U.S. Federal Reserve's preferred inflation measure, which will give investors a steer on how long the central bank might wait before reducing interest rates.Fed Governor Michelle Bowman reiterated that holding the policy rate steady "for some time" is likely to be enough to bring inflation under control. Politics were also at the forefront of investors' minds, with the first U.S. presidential debate between President Joe Biden and his predecessor Donald Trump set for Thursday and French elections due to begin this weekend. Immediate resistance can be seen at 0.8962 (50% fib), an upside break can trigger rise towards 0.9000 (Psychological level).On the downside, immediate support is seen at 0.8905 (38.2% fib), a break below could take the pair towards 0.8830 (23.6% fib)
USD/JPY: The dollar eased against yen on Tuesday as fears of intervention from Japanese officials deterred traders from punishing the yen too severely against other greenback . The dollar was last 0.1% lower at 159.49 yen , clinging to a tight range, as traders remained wary of testing the key resistance level that had prompted a 9.79 trillion yen ($61.33 billion) currency intervention from Tokyo in late April and early May. Decline in the yen has come on the back of the Bank of Japan's (BOJ) June policy meeting, where policymakers disappointed investors who were betting on an immediate reduction of the BOJ's massive bond purchases. Strong resistance can be seen at 159.09(23.6%fib), an upside break can trigger rise towards 159.55(Higher BB).On the downside, immediate support is seen at 157.83 (38.2% fib), a break below could take the pair towards 156.86 (50%fib).
Equities Recap
European shares declined on Tuesday as Airbus tumbled after a profit warning and dragged down aerospace-related stocks, while technology shares slumped tracking the overnight selloff on Wall Street.
UK's benchmark FTSE 100 was last down by 0.24 percent, Germany's Dax was last down by 1.14 percent, France’s CAC was last down by 0.76 percent.
Commodities Recap
Gold prices edged higher on Tuesday as a weaker Chinese currency supported demand in Asia, while investors awaited the U.S. inflation data due later this week to gain more certainty on the timing of future U.S. rate cuts.
Spot gold rose 0.1% to $2,335.30 per ounce by 1044 GMT.
Brent crude fell on Tuesday while investors awaited U.S. inflation data later this week, but prices held above the $85 level after the previous session's gains on escalating geopolitical tensions and hopes of improved demand this summer.
Brent futures for August settlement were down 43 cents at $85.58 a barrel by 1100 GMT. U.S. crude futures also dipped by 43 cents to $81.20.
