Market Roundup
• S.Korea, China report surge in new COVID-19 cases
• Shares in Turkey, South Africa, central Europe gain
• China’s April factory prices fall at sharpest rate in 4 years
• US NFIB Small Business Optimism 90.9, 96.4 previous
Looking Ahead - Economic Data (GMT)
• 12:30 US April Real Earnings (MoM) 257.95 previous
• 12:30 US April CPI Index, s.a -0.22% previous
• 12:30 US April Core CPI Index 266.80 previous
• 12:30 US April CPI (YoY) 0.4% forecast, 1.5% previous
• 12:30 US April Core CPI (MoM) -0.2% forecast, -0.1% previous
• 12:30 US April CPI Index, n.s.a. 256.45 forecast, 258.12 previous
• 12:30 US April Core CPI (YoY) 1.7% forecast, 2.1% previous
• 12:30 US April CPI (MoM) -0.8% forecast, -0.4% previous
• 12:55 US Redbook (YoY) -9.3% previous
• 12:55 US Redbook (MoM) -12.6% previous
• 15:00 US April Cleveland CPI (MoM) 0.2% previous
Looking Ahead - Events, Other Releases (GMT)
• 13:00 US FOMC Member Kashkari Speaks
• 13:00 US FOMC Member Bullard Speaks
• 13:00 US FOMC Member Quarles Speaks
• 13:00 US FOMC Member Harker Speaks
• 21:00 US FOMC Member Mester Speaks
Fxbeat
EUR/USD: The euro rose against dollar on Tuesday as mildly reassuring signals from China’s economy helped limit worries about a potential second wave of coronavirus infections. With a light data calendar in the euro zone, focus wiil be on the European Central Bank’s asset purchases, after data on Monday showed it had conducted its largest weekly purchases on record. The euro was up 0.35 percent at $1.0844. Immediate resistance can be seen at 1.0859 (11 DMA), an upside break can trigger rise towards 1.0890 (50% fib).On the downside, immediate support is seen at 1.0780 (Daily low), a break below could take the pair towards 1.0754 (23.6% fib).
GBP/USD: Sterling strengthened against the dollar on Tuesday as Britain waited for announcements about the furlough scheme and how the UK’s plans to ease lockdown measures will affect the workforce. On Sunday, the government began to change its advice about the lockdown, with a televised speech by Prime Minister Boris Johnson, then a 51-page document on Monday detailing the plans, followed by a series of sector-by-sector documents for employers and workers. Immediate resistance can be seen at 1.2397 (38.2% fib), an upside break can trigger rise towards 1.2416 (9 DMA)).On the downside, immediate support is seen at 1.2340 (23.6% fib), a break below could take the pair towards 1.2284 (Daily low).
USD/CHF: The dollar edged lower against the Swiss franc on Tuesday on growing fears about a second wave of coronavirus infections increased demand for safe haven assets. New coronavirus infections have been found in China, South Korea and Germany, where respective governments have eased lockdown restrictions. A re-emergence of novel coronavirus cases could dent a global economic recovery which was supposed to be propelled by an injection of monetary and fiscal stimulus. At (GMT 12:00), Greenback dipped 0.31% versus the Swiss franc to 0.9698. Immediate resistance can be seen at 0.9722 (5 DMA), an upside break can trigger rise towards 0.97800 (Psychological level).On the downside, immediate support is seen at 0.9693 (9 DMA), a break below could take the pair towards 0.9650 (50 DMA).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday as demand for safe haven yen increased on growing worries about a second wave of coronavirus infections after the Chinese city where the pandemic originated reported its first new cases since its lockdown was lifted. The central Chinese city of Wuhan reported five new cases on Monday, casting doubts over efforts to lower coronavirus-related restrictions across the country as businesses restart and individuals went back to work. Strong resistance can be seen at 107.55(30 DMA), an upside break can trigger rise towards 107.73 (55 DMA).On the downside, immediate support is seen at 107.13 (20 DMA), a break below could take the pair towards 106.79 (5 DMA).
Equities Recap
European shares edged higher on Tuesday, led by defensive stocks and a clutch of upbeat earnings reports as investors worried about the risk of resurgence in new coronavirus cases due to the lifting of lockdowns by some countries.
At (GMT 12:00),UK's benchmark FTSE 100 was last trading up at 0.84 percent, Germany's Dax was up by 0.34 percent, France’s CAC finished was down by 0.37 percent.
Commodities Recap
Gold prices rose on Tuesday as the dollar gave up some of its earlier gains, amid worries of a resurgence in coronavirus infections in some countries and lingering trade tensions between the United States and China.
Spot gold was up 0.5% at $1,705 per ounce by 1024 GMT. U.S. gold futures rose 0.7% to $1,710.40.
Oil prices rose on Tuesday, boosted by an unexpected commitment from Saudi Arabia to deepen production cuts in June to help drain a supply glut built up during the coronavirus crisis.
Brent crude advanced 85 cents, or 2.9%, to $30.48 at 1100 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up $1.29, or 5.3%, at $25.43.
Treasuries Recap
Euro zone bonds rose in early Tuesday trade as attention focussed on a rise in coronavirus infection rates.
German 10-year bond yields rose 3 basis points to -0.49%. . Most other yields also rose.
Italian 10-year bond yields were down 1 basis point to 1.88%, after rising 10 bps during the previous session .