Market Roundup
• German April Exports (MoM) -24.0%,-15.6% forecast, -11.8% previous
• German April Trade Balance 3.2B, 10.0B forecast, 12.8B previous
• German April Imports (MoM ) -16.5%, -16.0% forecast, -5.1% previous
• Gemran April Current Account Balance n.s.a 7.7B, 24.4B previous
• French April Current Account -5.40B, -3.30B previous
• French April Exports 23.7B, 35.2B previous
• French April Imports 28.7B, 38.5B previous
• French Trade Balance -5.0B, -3.3B previous
• EU Employment Change (YoY) (Q1) 0.4%,0.3% forecast, 1.1% previous
• EU Employment Change (QoQ) (Q1) -0.2%,-0.2% forecast, 0.3% previous
• EU Employment Overall (Q1) 160,370.7K, 160,363.0K previous
• EU GDP (YoY) (Q1) -3.1%,-3.2% forecast, -3.2% previous
• EU GDP (QoQ) (Q1) -3.6%,-3.8% forecast, -3.8% previous
Looking Ahead – Economic data (GMT)
• 12:30 Canada Corporate Profits (QoQ) 3.6% previous
• 12:55 US Redbook (YoY) -7.2% previous
• 12:55 US Redbook (MoM) -1.4% previous
• 14:00 US JOLTs Job Openings 5.000M, 6.191M previous
• 14:00 US April Wholesale Trade Sales (MoM) -4.0% forecast, -5.2% previous
• 14:00 US Wholesale Inventories (MoM) 0.4%,-0.8% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Tuesday as a risk-off mood prevailed in markets after fresh negative data from Europe's economic powerhouse Germany soured the mood ahead of Wednesday's U.S. Federal Reserve meeting. German exports and imports slumped in April, posting their biggest declines since records began in 1990 as demand dried up in the coronavirus lockdown. On Monday data showed German industrial output posted its steepest plunge on record in April. Immediate resistance can be seen at 1.1290 (23.6% fib), an upside break can trigger rise towards 1.1384 (Higher BB).On the downside, immediate support is seen at 1.1208 (9 DMA), a break below could take the pair towards 1.1167 (11 DMA).
GBP/USD: The pound fell against the dollar on Tuesday, erasing Monday’s gains, in a move driven by shifts in global risk appetite, as well as domestic concerns over Brexit and the British economy re-opening. The pound has risen 2.6% against the dollar this month as several countries emerge from lockdowns, weakening demand for the safe-haven U.S. currency.But sterling’s eight-day winning streak was set to break as the dollar pushed higher against a basket of currencies on Tuesday. Immediate resistance can be seen at 1.2757 (Higher BB), an upside break can trigger rise towards 1.2800 (Psychological levell).On the downside, immediate support is seen at 1.2641 (5 DMA), a break below could take the pair towards 1.2546 (9 DMA).
USD/CHF: The dollar dipped against the Swiss franc on Tuesday as investors awaited the U.S. Federal Reserve's two-day monetary policy meeting starting later in the day. Traders have stopped pricing in the possibility of negative interest rates in the United States and are now focused on the Fed's monetary policy meeting for guidance on how the world's biggest economy can recover after the coronavirus. Immediate resistance can be seen at 0.9652 (38.2 % fib), an upside break can trigger rise towards 0.9666 (21 DMA).On the downside, immediate support is seen at 0.9538 (Lower BB), a break below could take the pair towards 0.9500 (61.8% fib ).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as fears of renewed trade tensions between the United States and China increased demand for yen. The yen also rose as investors positioned for the likelihood that the Fed will take steps to flatten the Treasury yield curve this week. A statement from the Fed is due at 1800 GMT on Wednesday. The Japanese yen rose to a one-week high of 107.79 and was last trading up 0.5% at 108.12 .Strong resistance can be seen at 108.47(23.6% fib), an upside break can trigger rise towards 109.24 (Higher BB).On the downside, immediate support is seen at 107.82 (Daily low), a break below could take the pair towards 106.79 (50% fib).
Equities Recap
European shares fell on Tuesday as declines in cyclical stocks and UK’s British American Tobacco threw a spanner into a rally driven by optimism over a global recovery from the coronavirus crisis.
At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading down at 1.65 percent, Germany's Dax was down by 1.54 percent, France’s CAC was last down by 1.22 percent.
Commodities Recap
Gold prices rose on Tuesday as a pullback in equities increased the appeal of the safe-haven metal while investors awaited the U.S. Federal Reserve’s two-day monetary policy meeting starting later in the day.
Spot gold was up 0.8% at $1,708.09 per ounce by 0913 GMT, climbing for a second straight session. U.S. gold futures gained 0.6% to $1,714.50.
Oil prices fell on Tuesday weighed down by a stronger dollar and oversupply concerns after it was announced that a trio of Gulf producers would end voluntary output cuts.
Brent crude was down 72 cents, or 1.8% to $40.08 a barrel by 1053 GMT. West Texas Intermediate (WTI) crude fell 78 cents, or 2% to $37.41 per barrel.
