Market Roundup
• US Redbook (YoY) 5.7%, 5.2% previous
• US IBD/TIPP Economic Optimism (Nov) 43.9, 48.1 forecast,48.3 previous
Looking Ahead Economic Data(GMT)
•23:40 Japan Monetary Base (YoY) (Oct) -4.8% forecast,-6.1% previous
Looking Ahead Events And Other Releases(GMT)
•23:50 Japan Monetary Policy Meeting Minutes
•00:00 New Zealand RBNZ Press Conference
Currency Summaries
EUR/USD : The euro slipped on Tuesday as the U.S. dollar strengthened amid fading expectations of imminent Federal Reserve easing. The greenback’s advance extended gains from last week’s Fed meeting, where policymakers delivered a rate cut but Chair Jerome Powell cautioned that another reduction in December was “not a foregone conclusion.” Since then, Fed officials have expressed divergent views on the economic outlook and inflation risks, a debate complicated by the suspension of key data releases due to the U.S. government shutdown. According to CME’s FedWatch Tool, markets now assign a 65% probability of a December rate cut, down from 94% a week earlier.The dollar index, which measures the U.S. currency against six others, topped 100 for the first time since early August and was last at 100.17. Immediate resistance can be seen at 1.1534(Daily high), an upside break can trigger rise towards 1.1604(50%fib).On the downside, immediate support is seen at 1.1475(61.8%fib), a break below could take the pair towards 1.14623(Lower BB).
GBP/USD: The pound slipped lower on Tuesday after the UK finance minister pointed to hard choices in her upcoming budget .In an unusual pre-budget appearance, Reeves outlined her budget as one defined by “hard choices,” focused on reducing Britain’s debt and preserving essential services, while hinting at possible extensive tax hikes.Reeves outlined the challenging economic backdrop she faces, citing high debt, weak productivity, and persistent inflation.Looking ahead, the Bank of England is expected to pause its rate-cutting cycle on Thursday, though recent softer inflation and wage data could strengthen the case for a cut.The odds of a quarter-point rate change stand below 40% in money markets, a shift from late October when investors anticipated no BoE action before spring. Immediate resistance can be seen at 1.3139(Daily high), an upside break can trigger rise towards 1.3282(SMA 20).On the downside, immediate support is seen at 1.3000(Psychological level), a break below could take the pair towards 1.2975(Lower BB).
USD/CAD: The Canadian dollar fell to a near seven-month low against the U.S. dollar on Tuesday, pressured by a stronger greenback and investor caution ahead of Canada’s upcoming federal budget. The U.S. dollar climbed to a three-month high against major peers, supported by safe-haven flows amid global growth concerns. Prime Minister Mark Carney is expected to unveil a significant fiscal stimulus package aimed at boosting domestic investment and reducing Canada’s dependence on the U.S., its largest trading partner. Meanwhile, oil prices one of Canada’s key exports declined 0.7% to $60.61 per barrel, further weighing on the loonie. The loonie was trading 0.2% lower at 1.4090 per U.S. dollar , after touching its weakest intraday level since April 10 at 1.4095.Immediate resistance can be seen at 1.4121(Higher BB), an upside break can trigger rise towards 1.4154(Higher BB).On the downside, immediate support is seen at 1.4043(38.2 %fib), a break below could take the pair towards 1.4020(SMA 20).
USD/JPY: The U.S. dollar eased on Tuesday as the Japanese yen strengthened across the board following a verbal intervention from the Japanese Minister of Finance Katayama. Japan’s Finance Minister Satsuki Katayama reiterated that the government is monitoring foreign exchange movements with a strong sense of urgency after the yen fell to fresh eight-month lows. Her remarks echoed Friday’s warning against sharp and speculative moves in the currency market. Last week, the Bank of Japan kept interest rates unchanged, with Governor Kazuo Ueda warning that global trade tensions and restrictive policies could pose risks to economic growth and corporate profitability.Immediate resistance can be seen at 154.64(23.6%fib) an upside break can trigger rise towards 155.00 (Psychological level) .On the downside, immediate support is seen at 153.40 (Daily low) a break below could take the pair towards 152.98 (SMA20).
Equities Recap
European equities declined on Tuesday to their lowest level in over two weeks, mirroring the broader risk-off sentiment across global markets as investors digested a mixed set of corporate earnings results.
UK's benchmark FTSE 100 closed up by 0.14 percent, Germany's Dax ended down by 0.76 percent, France’s CAC finished the day down by 0.52 percent.
U.S. stocks tumbled on Tuesday after major banks cautioned that equity markets may face a potential correction, amplifying worries over elevated valuations and tightening financial conditions.
Dow Jones closed down by 0.53 percent, S&P 500 ended down by 1.17 percent, Nasdaq finished the day down by 2.04 percent.
Commodities Recap
Gold prices dropped over 1% on Tuesday as the dollar climbed to a three-month high, with investors awaiting key U.S. economic data for further signals on the Federal Reserve’s policy outlook.
Spot gold was down 1.5% to $3,940.75 as of 2:15 p.m. EST (1915 GMT). U.S. gold futures for December delivery eased 1.3% to settle at $3,960.50.
Oil prices declined on Tuesday as disappointing manufacturing data and a stronger dollar dampened demand, while OPEC+’s decision to delay output increases in early 2026 suggested growing concerns over a potential supply glut.
Brent crude futures closed 45 cents, or 0.7% lower at $64.44 a barrel. U.S. West Texas Intermediate crude was down 49 cents, or 0.8%, at $60.56.
