Market Roundup
• Price of U.S. oil increases 5.2%
• Fed’s two-day policy meeting watched
•Indexes mixed: Dow up 0.50%, S&P 500 up 0.33%, Nasdaq down 0.37% (AT GMT 18:28)
• US March Retail Inventories Ex Auto -1.3%, 0.3% previous
• US Wholesale Inventories (MoM) -1.0%, -0.7% previous
• US Redbook (YoY) -8.1%, -6.9% previous
• US Redbook (YoY) -11.8% ,-10.6% previous
• US Feb S&P/CS HPI Composite - 20 s.a. (MoM) 0.4%, 0.4% forecast, 0.3% previous
• US FebS&P/CS HPI Composite - 20 n.s.a. (MoM) 0.5% 0.0% previous
• US Feb S&P/CS HPI Composite - 20 n.s.a. (YoY) 3.5%, 3.2% forecast, 3.1% previous
• US April CB Consumer Confidence 86.9, 87.9, 120.0 previous
• US Richmond Manufacturing Index -53, 2 previous
• US Richmond Manufacturing Shipments -70, 13 previous
• US April Richmond Services Index-87, 1 previous
• US April Dallas Fed Services Revenues -65.4, -67.0 previous
• US Texas Services Sector Outlook -78.8 previous
• US March GDP Monthly (YoY) -0.7%,2.9% previous
Looking Ahead - Economic Data (GMT)
•22:45 New Zealand Employment Change (QoQ) (Q1) 0.3% forecast, 0.2% previous
• 22:45 New Zealand March Exports 4.92B previous
• 22:45 New Zealand March Imports 4.33B previous
•22:45 New Zealand Participation Rate (Q1) 70.10% previous
• 22:45 New Zealand March Trade Balance (MoM) 594M previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro gained against dollar on Tuesday as investors awaited European Central Bank meeting. The ECB has had less room to manoeuvre on rates and announced an enormous bond-buying program. But bickering and indecision over a eurozone rescue package has some in the market expecting deeper action still, perhaps as soon as Thursday.At (GMT 18:23), the euro was last trading up 0.08% at $1.0837. Immediate resistance can be seen at 1.0892 (Daily high), an upside break can trigger rise towards 1.0942 (55 DMA).On the downside, immediate support is seen at 1.0865 (11 DMA), a break below could take the pair towards 1.0837 (9 DMA).
GBP/USD: Sterling gained against dollar on Tuesday as investors turned their attention to U.S. Federal Reserve and European Central Bank meetings this week at which officials are expected to provide further stimulus to their economies to fight the coronavirus. Sterling has been closely correlated with riskier assets, such as stocks, and when investor risk appetite increases, the pound tends to move up.The UK currency was 0.1% higher at $1.2440, having risen earlier to $1.2516, its highest since April 17. Immediate resistance can be seen at 1.2733 (5 DMA), an upside break can trigger rise towards 1.2787 (Higher BB).On the downside, immediate support is seen at 1.2431 (11 DMA), a break below could take the pair towards 1.2390 (5 DMA).
USD/CAD: The Canadian dollar strengthened to a near two-week high against its U.S. counterpart on Tuesday as plans to ease coronavirus lockdowns ina number of major economies supported risk appetite. World stocks rose to their highest in almost six weeks as investors viewed the peaks of coronavirus infections in Asia, Europe and North America as behind them. Canada runs a current account deficit and is a major exporter of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital. Immediate resistance can be seen at 1.4573 (38.2% fib), an upside break can trigger rise towards 1.4672 (23.6% fib) On the downside, immediate support is seen at 1.4427 (19th March low), a break below could take the pair towards 1.4355 (5 DMA).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as a fresh plunge in oil prices underscored the economic shock from the coronavirus increased demand for safe haven. Oil prices slumped on concerns over dwindling crude storage capacity and fears that fuel demand may only recover slowly from curbs on economic and social activity to stem the spread of the coronavirus. Strong resistance can be seen at 107.37 (5 DMA), an upside break can trigger rise towards 107.80 (21 DMA ).On the downside, immediate support is seen at 106.57 (Daily low), a break below could take the pair towards 106.00 (Psychological level).
Equities Recap
A rally in banking shares helped European shares end at seven-week highs on Tuesday, with further optimism kindled by signs that several economies were starting to ease coronavirus-driven lockdowns. The pan-European STOXX 600 closed up 1.7% on largely broad-based gains.
UK's benchmark FTSE 100 closed up by 1.91 percent, Germany's Dax ended up by 1.27 percent, France’s CAC finished the day up by 1.43 percent.
The S&P 500 and Dow Jones indexes rose on Tuesday after a string of upbeat quarterly reports took the edge off a plunge in consumer confidence, with investors turning hopeful of a pickup in business activity as economies slowly reopen.
Dow Jones was last up by 0.50 percent, S&P 500 was last up by 0.33 percent, Nasdaq was last trading down at by 0.37percent.
Treasuries Recap
U.S. Treasury yields fell on Tuesday as the market reversed direction from Monday's uptick in yields and traders looked for stronger signs of the economy's path through the COVID-19 pandemic.
The benchmark 10-year yield was last down 2.2 basis points at 0.6318%.
Commodities Recap
Gold prices fell for a third straight session on Tuesday, as optimism about the easing of coronavirus-related restrictions drove investors towards riskier assets, while global recession fears capped bullion’s losses.
Spot gold was down 0.4% at $1,708.20 per ounce by 1059 GMT, after falling as much as 1.4% in the session. U.S. gold futures edged 0.1% lower to $1,722.20 per ounce.
Oil prices fell on Tuesday with U.S. crude leading the decline, falling about 3% as domestic stockpiles were expected to have risen closer to record highs amid tightening storage despite plans to cut production.
Global benchmark Brent crude fell 4 cents, or 0.2%, to $19.95 a barrel at 12:50 p.m. EDT (1450 GMT), following a 6.8% slide on Monday.
U.S. West Texas Intermediate (WTI) crude was down 43 cents, or 3.4%, at $12.35 a barrel. The contract plunged 25% on Monday.
