Market Roundup
•Canada Mar CPI (YoY) 2.9%,2.8% previous
•Canada Mar CPI (MoM) 0.6%,0.7% forecast,0.3% previous
•US Mar Building Permits (MoM) -4.3%, 2.4% previous
•US Mar Building Permits 1.458M,1.514M forecast, 1.524M previous
•US Housing Starts 1.321M,1.480M forecast, 1.521M previous
•Canada Mar Trimmed CPI (YoY) 3.1%,3.2% forecast, 3.2% previous
•Canada Mar Median CPI (YoY) 2.8%,3.0% forecast, 3.1% previous
•US Mar Housing Starts (MoM) -14.7%,10.7% previous
•Canada Mar Core CPI (YoY) 2.0%, 2.1% previous
•Canada Mar Core CPI (MoM) 0.5%,0.1% previous
•US Redbook (YoY) 4.9%,5.4 previous
• US Mar Manufacturing Production (MoM) 0.5%, 0.8% previous
• US Mar Industrial Production (MoM) 0.4%,0.4% forecast,0.1% previous
• US Mar Industrial Production (YoY) 0.00%, -0.23% previous
• US Mar Capacity Utilization Rate 78.4% ,78.5% forecast,78.3% previous
Looking Ahead Economic Data(GMT)
• 23:50 Japan Mar Imports (YoY) 0.5% previous
• 23:50 Japan Mar Trade Balance -379.4B previous
• 23:50 Japan Mar Exports (YoY) 7.8% previous
• 23:50 Japan Adjusted Trade Balance-0.28T forecast,-0.45T previous
•01:00 Australia Mar MI Leading Index (MoM) 0.1% previous
Looking Ahead Events And Other Releases(GMT)
•No Data Ahead
Currency Summaries
EUR/USD: The euro edged lower against dollar on Tuesday after Federal Reserve Chair Jerome Powell said the U.S. central bank may need to keep rates higher for longer as inflation remains sticky. The greenback has been bolstered by stronger-than-expected growth data, including retail sales data for March released on Monday. Stickier-than-hoped inflation in particular is seen as making it less likely that the Federal Reserve will begin cutting interest rates in the coming months. Traders pushed back expectations on when the U.S. central bank is likely to begin cutting rates after consumer price pressures for March on Wednesday were above economists' expectations.Traders are currently pricing in fewer than two 25 basis point cuts this year, after previously expecting three. Immediate resistance can be seen at 1.0652(Daily high), an upside break can trigger rise towards 1.0698(38.2%fib).On the downside, immediate support is seen at 1.0606 (23.6%fib), a break below could take the pair towards 1.0584 (Oct 24th 2023 low).
GBP/USD: Sterling stayed at a five-month low versus the dollar on Tuesday, after data showed Britain's unemployment rate rose by more-than-expected. The UK unemployment rate in the three months to February rose to 4.2% from 3.9%, although the Office for National Statistics said there was still some volatility in its data as it overhauls its survey which produces the figure. A poll of economists had forecast the February figure at 4%.Regular wages excluding bonuses grew by 6.0% compared with the same period a year earlier, easing from an increase of 6.1% in the November-to-January period. The pound was last flat on the day against the dollar at $1.24475, having touched its lowest since Nov. 17. Immediate resistance can be seen at 1.2484(38.2%fib), an upside break can trigger rise towards 1.2526(50%fib).On the downside, immediate support is seen at 1.2432(23.6%fib), a break below could take the pair towards 1.2400(Psychological level).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday as stronger dollar ,lower oil price and cautious sentiment due to heightened tensions in the Middle East weighed on Canadian dolla . Canadian housing starts in March fell more than expected to 242,200 units from a revised 260,000 units the previous month, the Canadian Mortgage and Housing Corporation (CMHC) said.A survey of 13 economists polled had forecast March housing starts falling to 245,000 units. Canada's annual inflation rate accelerated to 2.9% in March, up from 2.8% in February, Statistics Canada said. Analysts polled had expected an annual rate of 2.9% . U.S. May crude futures fell 5 cents to settle at $85.36 a barrel on Tuesday. The loonie was trading 0.2% lower at C$1.3809 to the greenback, after trading in a range of 1.3775 to 1.3846. Immediate resistance can be seen at 1.4117 (Daily high), an upside break can trigger rise towards 1.42569 (Higher BB).On the downside, immediate support is seen at 1.4047 (9 DMA), a break below could take the pair towards 1.3986 (55 DMA).
USD/JPY: The greenback hit its highest level since 1990 but sharp gains were capped as traders were on alert for possible intervention by Japanese authorities. The dollar strengthened 0.23% to 154.62 Japanese yen and earlier reached a 34-year high of 154.79.Traders are focused on whether Japanese monetary authorities will step in to shore up the currency as it rapidly deteriorates. Officials have ramped up warnings about a possible intervention, though analysts also note that it would be difficult, and expensive, to fight a strong bullish dollar trend. Japanese Finance Minister Shunichi Suzuki said on Tuesday he was closely watching currency moves and will take a thorough response as needed. Strong resistance can be seen at 154.82(23.6%fib), an upside break can trigger rise towards 155.00(Psychological level).On the downside, immediate support is seen at 153.72 (5EMA), a break below could take the pair towards 152.78 (38.2%fib).
Equities Recap
European stocks were sharply lower on Tuesday amid signs of escalating tensions in the Middle East and uncertainty over the Fed's rate trajectory.
UK's benchmark FTSE 100 closed down by 1.82percent, Germany's Dax ended up by 0.11 percent, France’s CAC finished the day down by 1. 43 percent.
Wall Street see-sawed to a mixed close on Tuesday as rising U.S. Treasury yields and elevated geopolitical worries counteracted a generally positive string of first-quarter corporate results.
Dow Jones closed up by 0.17 percent, S&P 500 ended down by 0.21 percent, Nasdaq finished the day down by 0.12 percent.
Commodities Recap
Gold prices held steady on Tuesday, as safe-haven demand amid ongoing tensions in the Middle East offset rising expectations of fewer U.S. rate cuts this year.
Spot gold was little changed at $2,382.72 per ounce by 13:56 ET (1756 GMT).U.S. gold futures settled 1% higher at $2,407.8.
Oil prices settled marginally lower on Tuesday after economic headwinds pressured investor sentiment, curbing gains from geopolitical tensions with eyes on Israel and its pending response to Iran's attack on Israeli territory over the weekend.
Brent crude futures for June delivery settled 8 cents lower, or 0.1% at $90.02 a barrel. U.S. crude for May delivery fell 5 cents lower, or 0.1%, to end at $85.36.
