Market Roundup
• Fed’s two-day policy meeting kicks off
• Canada Corporate Profits (QoQ) -38.5%,3.6% previous
• US Redbook (YoY) -9.7% -7.2% previous
• US Redbook (MoM) -3.2% ,-1.4% previous
• US JOLTs Job Openings 5.046M, 5.000M, 6.191M previous
• US April Wholesale Trade Sales (MoM) -16.9% -4.0% forecast, -5.2% previous
• US Wholesale Inventories (MoM) 0.3%, 0.4%,-0.8% previous
Looking Ahead – Economic data (GMT)
• 21:30 New Zealand Manufacturing Sales Volume (QoQ) (Q1) 2.7% previous
• 23:50 Japan May PPI (MoM) -0.3% forecast, -1.5% previous
• 23:50 Japan May PPI (YoY) -2.4% forecast, -2.3% previous
• 23:50 Japan April Core Machinery Orders (MoM ) -8.6% forecast, -0.4% previous
• 00:30 Australia June Westpac Consumer Sentiment 16.4% previous
• 01:30 China May PPI (YoY) -3.3% forecast,-3.1% previous
• 01:30 China May CPI (MoM) -0.5% forecast,-0.9% previous
• 01:30 Australia Home Loans (MoM) -2.0% previous
• 01:30 Australia Invest Housing Finance (MoM) -1.9% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro declined against dollar on Tuesday as downbeat German exports weighed on euro. German exports and imports slumped in April, posting their biggest declines since records began in 1990 as demand dried up in the coronavirus lockdown. On Monday data showed German industrial output posted its steepest plunge on record in April. Seasonally adjusted exports plunged 24% on the month, far more than economists expected, while imports slid 16.5%. The trade surplus shrank to 3.2 billion euros, the Federal Statistics Office said on Tuesday. Immediate resistance can be seen at 1.1290 (23.6% fib), an upside break can trigger rise towards 1.1384 (Higher BB).On the downside, immediate support is seen at 1.1208 (9 DMA), a break below could take the pair towards 1.1167 (11 DMA).
GBP/USD: The pound fell against the dollar on Tuesday, erasing Monday’s gains, in a move driven by shifts in global risk appetite, as well as domestic concerns over Brexit and the British economy re-opening. The pound has risen 2.6% against the dollar this month as several countries emerge from lockdowns, weakening demand for the safe-haven U.S. currency.But sterling’s eight-day winning streak was set to break as the dollar pushed higher against a basket of currencies on Tuesday. Immediate resistance can be seen at 1.2757 (Higher BB), an upside break can trigger rise towards 1.2800 (Psychological levell).On the downside, immediate support is seen at 1.2641 (5 DMA), a break below could take the pair towards 1.2546 (9 DMA).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Tuesday as investors captured some recent gains for the currency ahead of an interest rate decision on Wednesday from the Federal Reserve. The price of oil, one of Canada's major exports, turned higher, helped by recent commitments from major oil producers to curb production. U.S. crude oil futures settled nearly 2% higher at $38.94 a barrel. At (20:48 GMT), the Canadian dollar was trading 1% lower at 1.4115 to the greenback, or 70.85 U.S. cents .Immediate resistance can be seen at 1.3471 (9 DMA), an upside break can trigger rise towards 1.3150(23.6 % fib).On the downside, immediate support is seen at 1.3355 (May 9th low), a break below could take the pair towards 1.3270 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as safe-haven yen gained for a second straight day this week as U.S. stocks stumbled a day after a blistering rally that propelled the tech-heavy Nasdaq to an all-time high. The yen rose to one-week highs against the dollar, its highest in more than two months versus the greenback. Japanese investors have also sold the dollar as they positioned for the likelihood that the Federal Reserve will take steps to flatten the Treasury yield curve. The U.S. yield curve has steepened in recent sessions, as rates on the long end rose .Strong resistance can be seen at 108.47(23.6% fib), an upside break can trigger rise towards 109.24 (Higher BB).On the downside, immediate support is seen at 107.82 (Daily low), a break below could take the pair towards 106.79 (50% fib).
Equities Recap
Banks and oil companies led European stocks lower on Tuesday as investors turned wary ahead of the U.S. Federal Reserve’s policy meeting.
UK's benchmark FTSE 100 closed down by 2.11 percent, Germany's Dax ended down by 1.57 percent, France’s CAC finished the day down by 1.55 percent.
The S&P 500 and Dow fell on Tuesday after recent strong gains, while the Nasdaq ended at an all-time high for a second straight day after briefly rising above the 10,000 mark for the first time.
Dow Jones closed down by 1.09%percent, S&P 500 closed down by 0.78% percent, Nasdaq settled up by 0.29 % percent.
Treasuries Recap
U.S. Treasury yields fell on Tuesday benefiting from weaker stocks as the market awaited word from the Federal Reserve about yield curve control and negative interest rates, subjects of broad speculation, on Wednesday after its policy meeting.
The 30-year Treasury yield was last down 10.6 basis points at 1.552%.
Commodities Recap
Gold prices rose on Tuesday as a pullback in equities increased the appeal of the safe-haven metal while investors awaited the U.S. Federal Reserve's two-day monetary policy meeting starting later in the day.
Spot gold gained 0.7% to $1,705.77 an ounce by 1150 GMT, climbing for a second straight session. U.S. gold futures rose 0.6% to $1,715.50.
Oil prices rose on Tuesday, as optimism about recent commitments from major oil producers to curb production offset concerns that a resurgence in coronavirus cases could hurt fuel demand.
Brent crude rose 38 cents, or 0.9%, to settle at $41.18 a barrel. West Texas Intermediate crude (WTI) rose 75 cents, or 2%, to end at $38.94 a barrel.
