Market Roundup
• US Redbook (YoY) 5.4%, 5.2% previous
•US IBD/TIPP Economic Optimism 43.2 , 44.2 forecast,43.5 previous
• US 3-Year Note Auction 4.548% ,4.256% previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Releases(GMT)
•02:00 New Zealand RBNZ Rate Statement
•02:00 New Zealand RBNZ Interest Rate Decision 5.50% forecast, 5.50% previous
Currency Summaries
EUR/USD: The euro edged higher against weaker dollar on Tuesday as investors awaited the European Central Bank's policy decision later in the week. The ECB's current stance is to maintain interest rates this week, with a potential leaning towards considering a rate cut in June. Despite growing confidence within the ECB regarding inflation's trajectory back to the 2% target, it has been relatively non-specific regarding additional easing measures. On the data front, ECB survey showed lenders lowered the bar on mortgage approvals last quarter for the first time in over two years, but demand for credit kept falling amid high borrowing costs and a stagnant economy. The euro rose 0.1% to $1.0859. Immediate resistance can be seen at 1.0874(Daily high), an upside break can trigger rise towards 1.0903(23.6%fib).On the downside, immediate support is seen at 1.0845 (5EMA), a break below could take the pair towards 1.0824 (38.2%fib).
GBP/USD: Sterling edged higher against the dollar on Tuesday as investors braced for crucial U.S. and UK economic data for clues on the interest rate trajectory. Markets await British gross domestic product figures due on Friday after data from starting salaries for permanent staff added to signs of a slowdown in the job market and the British Retail Consortium said an early Easter boosted food spending in Britain last month. Before GDP data, sterling will focus on events outside the UK, including Wednesday's U.S. inflation figures and Thursday's European Central Bank policy meeting. The pound rose 0.1% to $1.2676 versus the dollar which struggled for direction amid caution ahead of Wednesday's data. Immediate resistance can be seen at 1.2692(38.2%fib), an upside break can trigger rise towards 1.2764 (23.6%fib).On the downside, immediate support is seen at 1.2653(5EMA), a break below could take the pair towards 1.2627(38.2%fib).
USD/CAD :The Canadian dollar edged lower against its U.S. counterpart on Tuesday as oil prices fell and investors priced in some risk that the Bank of Canada would signal the start of an interest rate cutting campaign at this week's policy decision. Money markets expect the Canadian central bank to leave its benchmark rate on hold at a 22-year high of 5% on Wednesday but to then begin cutting in June. U.S. crude oil futures settled down 1.4% at $85.20 a barrel, giving back some recent gains for a second day. Oil is one of Canada's major exports.The Canadian dollar was trading 0.1% lower at 1.3585 to the U.S. dollar , after trading in a range of 1.3548 to 1.3598. On Friday, it touched a three-month low at 1.3647.Immediate resistance can be seen at 1.3617 (23.6%fib), an upside break can trigger rise towards 1.3650 (April 5th high).On the downside, immediate support is seen at 1.3551 (38.2%fib), a break below could take the pair towards 1.3491(50%fib).
USD/JPY: The dollar edged higher against yen on Tuesday but gains were limited as threat of intervention has kept the dollar from breaching the closely watched 152 yen level. The U.S. dollar added 0.02% to 151.94 yen , holding near a 34-year high of 151.975 yen hit last month as Japanese officials continued trying to talk up the currency. Bank of Japan Governor Kazuo Ueda said the central bank must consider whittling down stimulus further if inflation continues to accelerate, signalling the chance of another interest rate hike later this year in line with market bets.Speaking in parliament, Ueda said the central bank must maintain ultra-loose monetary policy for the time being since trend inflation has yet to reach its 2% target.Strong resistance can be seen at 152.00(Psychological level), an upside break can trigger rise towards 153.26(Higher BB).On the downside, immediate support is seen at 151.13 (April 4th low), a break below could take the pair towards 150.43(38.2%fib).
Equities Recap
A sell-off in defence stocks dragged Europe's benchmark stock index lower on Tuesday, while investors braced for this week's crucial U.S. inflation data and the European Central Bank's monetary policy decision.
UK's benchmark FTSE 100 closed down by 0.11 percent, Germany's Dax closed down by 1.32 percent, France’s CAC closed down by 0.86 percent.
The Nasdaq and S&P 500 posted modest gains on Tuesday, a day ahead of major inflation data, weighed down by financial stocks as investors braced for major U.S. banks to kick off earnings reporting season on Friday.
Dow Jones was down by 0.02%percent, S&P 500 was up by 0.14% percent, Nasdaq was up by 0.32% percent.
Commodities Recap
Gold extended its record run on Tuesday fueled by buying momentum and geopolitical risks, while the spotlight shifted to the Federal Reserve's policy meeting minutes and U.S. inflation data for insights into U.S. rate cut timeline.
Spot gold was up 0.3% at $2,346.57 per ounce by 2:06 p.m. ET (1806 GMT) after hitting a record high of $2,365.09.U.S. gold futures settled 0.5% higher at $2,362.4.
Oil prices settled lower for a second day on Tuesday, as talks for a ceasefire in Gaza continued, but losses were limited to less than a dollar a barrel as Egyptian and Qatari mediators met resistance in their search to find a way out of the war.
Brent crude futures settled 96 cents, or 1.1%, lower at $89.42 per barrel, while U.S. West Texas Intermediate (WTI) crude futures closed down $1.20 or 1.4% at $85.23.
