Market Roundup
•US Redbook (YoY) 5.3%,4.9% previous
•US Apr Services PMI 50.9,52.9 forecast,51.7 previous
•US Apr Manufacturing PMI 49.9, 52.0 forecast,51.9 previous
•US Apr S&P Global Composite PMI 50.9, 52.1 previous
•US Apr Richmond Services Index -13,-7 previous
•US Mar New Home Sales 693K, 668K forecast,662K previous
•US Apr Richmond Manufacturing Index -7, -7 forecast,-11 previous
•US Apr Richmond Manufacturing Shipments -10,-14 previous
• US Mar New Home Sales (MoM) 8.8%, -0.3% previous
Looking Ahead Economic Data(GMT)
•22:45 New Zealand Mar Trade Balance (MoM) -505M forecast, -218M previous
•22:45 New Zealand Mar Trade Balance (YoY) -11,990M previous
•22:45 New Zealand Mar Exports 5.89B previous
•23:50 Japan Corporate Services Price Index (CSPI) (YoY) 2.1% forecast,2.1% previous
•01:30 Australia Trimmed Mean CPI (QoQ) (Q1) 0.8% forecast,0.8% previous
•01:30 Australia Weighted mean CPI (QoQ) (Q1) 0.9% forecast, 0.9% previous
•01:30 Australia CPI (QoQ) (Q1) 0.8% forecast, 0.6% previous
•01:30 Australia CPI (YoY) (Q1) 3.4% forecast,4.1% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
EUR/USD: The euro strengthened against dollar on Tuesday after data showed business activity overall in the euro zone expanded at its fastest pace in nearly a year this month. Overall business activity in the euro zone expanded at its fastest pace in nearly a year this month as a buoyant recovery in the bloc's dominant service industry more than offset a deeper downturn in manufacturing, a survey found. HCOB's preliminary composite euro zone Purchasing Managers' Index (PMI), compiled by S&P Global, bounced to 51.4 this month from March's 50.3, well ahead of expectations in a poll for 50.7 and marking its second month above the 50 level separating growth from contraction. The euro climbed to a two-week peak against the dollar of $1.0711 , before drifting back to trade at $1.0707, up 0.5%. Immediate resistance can be seen at 1.0708(38.2% fib), an upside break can trigger rise towards 1.0756(50% fib).On the downside, immediate support is seen at 1.0644 (23.6% fib), a break below could take the pair towards 1.0600 (Psychological level).
GBP/USD: The pound steady against the dollar on Tuesday after data showed British businesses recorded their fastest growth in activity in nearly a year. The S&P Global UK Composite Purchasing Managers' Index for the services and manufacturing sectors jumped to an 11-month high of 54.0 in April from March's 52.8, above all forecasts in a Reuters poll of economists. The gain was led by an big rise in the services index to 54.9 from 53.1, while the index for the smaller manufacturing sector unexpectedly fell to 48.7 from 50.3, a move below 50 that takes it into contractionary territory. The pound rose as much as 0.3% against the dollar after the data was released, but failed to hold those gains and was last just in positive territory. The British currency had fallen to a five-month low of $1.2299 against the dollar on Monday, but recovered on Tuesday to $1.2450 , up 0.8%. Immediate resistance can be seen at 1.2409(38.2%fib), an upside break can trigger rise towards 1.2437 (EMA 9).On the downside, immediate support is seen at 1.2334(23.6 % fib), a break below could take the pair towards 1.2305 (April 22nd low).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as higher oil prices and weaker dollar boosted Canadian dollar. The U.S. dollar index weakened after S&P Global data showed U.S. business activity cooled in April to a four-month low on weaker demand. S&P Global said on Tuesday its flash U.S. Composite PMI Output Index, which tracks both the manufacturing and services sectors, fell to 50.9, a level slightly above expansion territory, from 52.1 in March. The loonie was trading 0.3% higher at C$1.3661 to the greenback, or 73.2 U.S. cents, after trading in a range of 1.3657 to 1.3714.Immediate resistance can be seen at 1.3738 (38.2% fib), an upside break can trigger rise towards 1.3800 (April 19th high).On the downside, immediate support is seen at 1.3651 (50% fib), a break below could take the pair towards 1.3561 (61.8% fib).
USD/JPY: The U.S. dollar climbed to a fresh 34-year peak against the yen on Tuesday keeping investors on heightened intervention watch ahead of this week's Bank of Japan meeting. Earlier on Tuesday, Japanese Finance Minister Shunichi Suzuki gave his strongest warning yet on the chance of intervention, saying last week's meeting with his U.S. and South Korean counterparts laid the groundwork for Tokyo to act against excessive yen moves. However, there were doubts whether Tokyo would act so close to the BOJ's two-day policy meeting that starts on Thursday.Japan's central bank is expected to forecast that inflation will stay around its 2% target for the next three years in a new estimate due on Friday, signalling its readiness to cautiously raise interest rates again this year from near-zero levels. Strong resistance can be seen at 154.84 (23.6% fib), an upside break can trigger rise towards 155.00 (Psychological level).On the downside, immediate support is seen at 154.14 (5 EMA), a break below could take the pair towards 153.44 (38.2% fib).
Equities Recap
European shares logged their best day in six weeks on Tuesday, driven by the retail and technology sector as investors found comfort in upbeat corporate updates, while the UK's FTSE 100 index hit its all-time peak.
UK's benchmark FTSE 100 closed up by 0.26 percent, Germany's Dax ended up by 1.58 percent, France’s CAC finished the day up down by 0. 81 percent.
U.S. stocks closed higher on Tuesday following positive earnings from top-tier companies and as investors were focused on quarterly results from Magnificent Seven and other megacap growth stocks.
Dow Jones closed up by 0.69 percent, S&P 500 ended up by 1.20 percent, Nasdaq finished the up by 1.59 percent.
Commodities Recap
Gold prices fell to a more than two-week low on Tuesday as easing concerns of an escalation in the Middle East crisis triggered profit-taking after a recent rally.
Spot gold fell 1.0% to $2,303.59 per ounce by 1203 GMT. Gold, silver and palladium touched their lowest since April 5 earlier in the session, while platinum hit a three-week low.
Oil prices rose a dollar a barrel on Tuesday as the U.S. dollar index fell to its lowest level in more than a week and as investors shifted their focus away from geopolitical issues in the Middle East to the state of global economies.
Brent crude futures were up $1.42, or 1.6%, to settle at $88.42 a barrel and U.S. West Texas Intermediate crude futures climbed $1.46, or 1.8%, to $83.36 a barrel.
