Market Roundup
•US Jun Building Permits 1.685M, 1.650Mforecast, 1.695M previous
•US Jun Housing Starts (MoM) -2.0%, -14.4% previous
•US Jun Housing Starts 1.559M,1.580Mforecast,1.549M previous
•US Jun Building Permits (MoM) -0.6%, -7.0% previous
•US Redbook (YoY) 14.6%,13.0% previous
•NZ GlobalDairyTrade Price Index -5.0%,-4.1% previous
Looking Ahead - Economic Data (GMT)
•00:30 Australia AU MI Leading Index (MoM) -0.1% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro rose against the U.S. dollar on Tuesday on news that the European Central Bank would discuss this week whether to raise rates faster than expected. The euro jumped 1.1% to $1.08149, on course for its best day since May, after Reuters reported that ECB policymakers are considering raising interest rates by a bigger-than-expected 50 basis points at their meeting on Thursday. The euro, which last week fell below parity against the dollar for the first time in two decades, was trading 1% higher at $1.0256 . Immediate resistance can be seen at 1.0294 (21DMA), an upside break can trigger rise towards 1.0349(38.2%fib).On the downside, immediate support is seen at 1.0148(23.6%fib), a break below could take the pair towards 1.0087 (18th July low).
GBP/USD: The British pound rose against a broadly struggling dollar on Tuesday as latest economic data suggested the cost-of-living squeeze had not yet hit demand for staff in the UK. Data showed Britain’s unemployment rate holding at 3.8% in the three months to May while the number of people in work rose by the most since the middle of 2021.Sterling was up half a percent at $1.20120 against the dollar. Immediate resistance can be seen at 1.2056(38.2% fib), an upside break can trigger rise towards 1.2131(30DMA).On the downside, immediate support is seen at 1.1950 (50% fib), a break below could take the pair towards 1.1856 (61.8% fib).
USD/CAD: The Canadian dollar strengthened against the greenback on Tuesday, and the yield on benchmark government debt climbed. Oil prices rose about 1%, with global benchmark Brent settling at a two-week high in volatile trading on Tuesday as traders worried about tight supplies and a weaker dollar.The loonie was trading 0.7% higher at C$1.2883 to the greenback, or 77.62 U.S. cents, after trading in a range of 1.2877 to 1.2989. Immediate resistance can be seen at 1.2947(38.2%fib), an upside break can trigger rise towards 1.2986 (11DMA).On the downside, immediate support is seen at 1.2948(50% fib), a break below could take the pair towards 1.2764 (61.8% fib).
USD/JPY: The dollar initially dipped against the Japanese yen on Tuesday but recovered most of the lost ground as investors awaited more cues from top central banks on their monetary policy plans. Market participants are now anticipating a 75-basis-point hike by the Fed at its July 26-27 meeting. The European Central Bank and the Bank of Japan both are meeting on Thursday, with the ECB widely expected to deliver a 25-basis-point hike. Markets are expecting a large 75 basis point interest rate hike at the U.S. Federal Reserve's meeting next week, away from a flirtation with the chance of an enormous 100 basis point rise. Strong resistance can be seen at 138.64 (Daily high), an upside break can trigger rise towards 140.00(Psychological level).On the downside, immediate support is seen at 137.47 (11DMA), a break below could take the pair towards 136.64 (21DMA).
Equities Recap
European stocks closed sharply higher on Tuesday, extending gains to a third straight session, with investors focusing on earnings updates and looking ahead to the European Central Bank's monetary policy announcement, due later in the week.
The UK's benchmark FTSE 100 closed up by 1.06 percent, Germany's Dax ended up by 2.69 percent, and France’s CAC finished the day up by 1.79percent.
U.S. stocks closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline.
Dow Jones closed up at 2.30 percent, S&P 500 ended up 2.27 percent, Nasdaq finished the day up by 3.11 percent.
Commodities Recap
Oil prices rose about 1%, with global benchmark Brent settling at a two-week high in volatile trade on Tuesday as traders worried about tight supplies and a weaker dollar.
Brent futures rose $1.08, or 1.0%, to settle at $107.35 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.62, or 1.6%, to settle at $104.22.
Gold inched higher on Tuesday, helped by a pullback in the dollar, as investors braced for cues on the pace of interest rate hikes from major central banks this month.
Spot gold was up 0.1% at $1,710.13 per ounce by 2:12 p.m. EDT (1812 GMT). U.S. gold futures settled mostly unchanged at $1,710.70.
