Market Roundup
• French 12-Month BTF Auction 3.413%, 3.436% previous
• French 3-Month BTF Auction 3.815%, 3.844% previous
• French 6-Month BTF Auction 3.722%,3.690% previous
• US Factory orders ex transportation (MoM) 1.1%, -0.8% previous
• US Feb Durables Excluding Transport (MoM) 0.3%, -0.4% previous
• US Feb Durables Excluding Defense (MoM) 2.1%, 2.2% previous
• US Feb JOLTs Job Openings 8.756M, 8.760M forecast,8.863M previous
• US Feb Factory Orders (MoM) 1.4%, 1.1% forecast, -3.6% previous
Looking Ahead Economic Data (GMT)
•22:00 Australia Mar AIG Manufacturing Index -12.6 previous
•22:00 Australia Mar AIG Construction Index -18.4 previous
•00:30 Japan Mar Services PMI 54.9 forecast, 52.9 previous
•01:45 China Mar Caixin Services PMI 52.7 forecast, 52.5 previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro rebounded against dollar after better than expected Eurozone Manufacturing PMI data . HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, dipped to 46.1 in March from February's 46.5, beating a preliminary estimate of 45.7 but staying below the 50 mark denoting growth in activity for a 21st month. New orders fell for a 23rd month despite factories cutting their prices at the fastest pace since November. Any sign of easing inflationary pressures will likely be welcome news to the European Central Bank as they struggle to bring inflation back to target.Factories across the bloc reduced headcount again but in a sign that managers expected an improvement the future output index, a gauge of optimism, rose to 57.4 from 57.1, its highest since April last year. Immediate resistance can be seen at 1.0777(Daily high), an upside break can trigger rise towards 1.0802(23.6%fib).On the downside, immediate support is seen at 1.0733 (38.2%fib), a break below could take the pair towards 1.0710 (Lower BB).
GBP/USD: The pound rose on Tuesday after data showed Britain's manufacturing sector expanded in March and mortgage approvals rose in February. Survey data out on Tuesday showed that British manufacturers reported their first overall growth in activity in 20 months in March thanks to recovering domestic demand. Separate figures showed that UK banks approved the highest number of mortgages in February since September 2022, when new lending slumped due to bond market turmoil caused by Liz Truss' premiership. Sterling was last up 0.14% at $1.2566, after falling 0.58% on Monday as the dollar rose on the back of strong U.S. economic data. Immediate resistance can be seen at 1.2589(38.2%fib), an upside break can trigger rise towards 1.2733(23.6%fib).On the downside, immediate support is seen at 1.2540(38.2%fib), a break below could take the pair towards 1.2476(50%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Tuesday as higher commodity prices offset increased investor nervousness about the timing of interest rate cuts. The loonie was nearly unchanged at 1.3570 to the U.S. dollar, or 73.69 U.S. cents, after trading in a range of 1.3557 to 1.3584. It extends the sideways pattern for the USD-CAD currency pair in recent months . Canada is a major producer of commodities, including gold, which notched a fresh record high, and oil.U.S. crude oil futures settled 1.7% higher at $85.15 a barrel as oil supplies faced fresh threats from Ukrainian attacks on Russian energy facilities, while Wall Street's main indexes dropped as recent strong economic data raised doubts over the three rate cuts that the Fed has outlined for this year.The Bank of Canada is also expected to begin cutting rates this year but likely not as soon as a policy announcement next week. Immediate resistance can be seen at 1.3582(23.6%fib), an upside break can trigger rise towards 1.3635 (Higher BB).On the downside, immediate support is seen at 1.3508(38.2%fib), a break below could take the pair towards 1.3437 (50%fib).
USD/JPY: The dollar was little changed on Tuesday as fears of intervention by Japanese officials kept investors cautious. Japanese Finance Minister Shunichi Suzuki said authorities were ready to take appropriate action against excessive exchange-rate volatility, repeating his warning to yen bears as Tokyo tries to prevent a destabilising fall in the currency.Suzuki stopped short of threatening to take "decisive action" against excessive moves, language the minister used last week when the yen slumped to a 34-year low, suggesting officials are keeping their powder dry as they watch how currency moves play out. The yen has been on a downtrend despite the Bank of Japan's decision last month to end eight years of negative interest rates, as traders interpreted its dovish language as signalling that the next rate hike will be some time away.Markets remain on alert for the chance of intervention by Tokyo as the dollar hovers around 151.610 yen , near the 34-year high of 151.975 hit on Wednesday.Strong resistance can be seen at 151.77(Daily high), an upside break can trigger rise towards 152.96(Higher BB).On the downside, immediate support is seen at 151.18 (Daily low), a break below could take the pair towards 150.32 (38.2%fib).
Equities Recap
European stocks made a downbeat start to the second quarter, pressured by healthcare shares, while investors parsed inflation data from the continent's largest economy Germany for clues on the timing of European Central Bank interest rate cuts.
UK's benchmark FTSE 100 closed down by 0.22 percent, Germany's Dax ended down by 1.09 percent, France’s CAC finished the day downup by 0.92 percent.
U.S. stocks fell on Tuesday as investors weighed chances that the Federal Reserve could delay cutting interest rates, while Tesla shares dropped after the electric car maker posted fewer quarterly deliveries for the first time in nearly four years.
Dow Jones closed down at by 0.95 percent, S&P 500 closed down by 0.71 percent, Nasdaq closed down by 0.95 % percent.
Commodities Recap
Gold scaled yet another record peak on Tuesday as traders snapped up the safe haven asset amid growing Middle East tensions, largely ignoring a stronger dollar and tempered bets for U.S. rate cuts.
Spot gold was up 0.8% at $2,268.44 per ounce by 2:07 p.m. EDT (1807 GMT), after hitting an all-time high of $2,276.89.U.S. gold futures settled 1.1% higher at $2,281.8.
Oil prices settled higher on Tuesday after a session in which Ukrainian attacks on Russian energy facilities and escalating conflict in the Middle East pushed the Brent benchmark above $89 a barrel for the first time since October.
Brent futures for June delivery settled up $1.50, or 1.7%, at $88.92 after touching a peak of $89.08.
U.S. West Texas Intermediate (WTI) crude futures for May settled up $1.44, or about 1.7%, to $85.15 after touching a peak of $85.46, also the highest since October.
