Market Roundup
•Canada Apr RMPI (YoY) -10.8% ,-24.5% forecast, -16.5% previous
•Canada Apr RMPI (MoM) 2.9% ,0.7% forecast,-1.7% previous
•Canada Apr IPPI (YoY) -3.5% ,-5.6% forecast,-1.8% previous
•Canada Apr IPPI (MoM) -0.2%, 0.2% forecast,0.1% previous
•US Redbook (YoY) 1.5%, 1.6% previous
•US May S&P Global Composite PMI 54.5, 50.0 forecast,53.4 previous
•US May Manufacturing PMI 48.5 , 50.0 forecast,50.2 previous
•US May Services PMI 55.1 ,52.6 forecast, 53.6 previous
•US Apr New Home Sales 683K, 663K forecast,683K previous
•US May Richmond Manufacturing Index -15 ,-8 forecast,-10 previous
•US May Richmond Services Index -10,-29 forecast,-23 previous
Looking Ahead Economic Data(GMT)
•01:00 Australia Apr MI Leading Index (MoM) -0.0% previous
•02:00 New Zealand RBNZ Interest Rate Decision 5.50% forecast,5.25% previous
Looking ahead Events And Other Releases(GMT)
•02:00 New Zealand RBNZ Monetary Policy Statement
•02:00 RBNZ Rate Statement
•03:00 New Zealand RBNZ Press Conference
Currency Summaries
EUR/USD: The euro dipped against dollar on Tuesday as a lack of progress in talks over increasing the U.S. debt limit hurt investors' appetite for risk-taking.Representatives of President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday with no signs of progress as the deadline to raise the government's $31.4 trillion borrowing limit or risk default ticked closer. The dollar index , which measures the U.S. currency against a basket of major peers, reached 103.65, the highest since March 20, and was last at 103.55. Immediate resistance can be seen at 1.0824(5DMA), an upside break can trigger rise towards 1.0899(23.6%fib).On the downside, immediate support is seen at 1.0752 (38.2%fib), a break below could take the pair towards 1.0755(50%fib).
GBP/USD: The British pound eased against the U.S. dollar on Tuesday as UK business activity data came in below expectations.S&P Global’s UK composite purchasing managers’ index (PMI), which spans both the services and manufacturing sectors, showed services activity growth slowed more than expected this month, while manufacturing companies’ business shrank more than forecast.The pound dropped to as low as 1.2385 against the dollar following the data, the lowest since April 21. Immediate resistance can be seen at 1.2478 (5DMA), an upside break can trigger rise towards 1.2572 (23.6%fib).On the downside, immediate support is seen at 1.2385 (38.2%fib), a break below could take the pair towards 1.2320(Lower BB).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Tuesday, clawing back its earlier losses, as oil prices rose and the greenback posted broad-based gains. Oil rallied after a warning from the Saudi energy minister to speculators that raised the prospect of further OPEC+ output cuts. Meanwhile, domestic data showed that producer prices fell by 0.2% in April from March on lower prices for refined petroleum energy products, as well as softwood lumber. The loonie was trading nearly unchanged at 1.3505 to the greenback, after touching its weakest intraday level since May 15 at 1.3548.Immediate resistance can be seen at 1.3529(38.2% fib), an upside break can trigger rise towards 1.3568 (May 15th high).On the downside, immediate support is seen at 1.3482 (50% fib), a break below could take the pair towards 1.3460 (14 DMA).
USD/JPY: The U.S. dollar briefly touched a six-month peak against Japan's yen as expectations that U.S. interest rates will remain higher for longer, while ongoing debt ceiling negotiations kept investors on edge.Among a slew of Federal Reserve heavyweights who spoke on Monday, some hinted that the central bank had further to go in tightening monetary policy.Minneapolis Fed President Neel Kashkari said that U.S. rates may have to go "north of 6%" for inflation to return to the Fed's 2% target, while St. Louis Fed President James Bullard said the central bank may still need to raise by another half-point this year.Strong resistance can be seen at 139.06(23.6%fib) an upside break can trigger rise towards 139.43(Higher BB).On the downside, immediate support is seen 137.47(5DMA), a break below could take the pair towards 136.06(38.2%fib)
Equities Recap
European shares fell on Tuesday, knocked down by losses in luxury majors and a weak update from Swiss wealth manager Julius Baer, while investors were also vigilant of economic data from the region and the U.S. debt ceiling deadlock.
UK's benchmark FTSE 100 closed down by 0.10 percent, Germany's Dax ended down by 0.44 percent, France’s CAC finished the day down by 1.33 percent.
Wall Street stocks finished sharply lower on Tuesday and short-term Treasury yields shot up as investor jitters grew over a lack of progress in U.S. debt limit talks.
Dow Jones closed down by 0.69% percent, S&P 500 closed down by 1.12 % percent, Nasdaq settled down by 1.26 %percent.
Commodities Recap
Oil prices rose on Tuesday on forecasts for a tighter gasoline market and a warning from the Saudi energy minister to speculators that raised the prospect of further OPEC+ output cuts.
Brent crude futures rose 85 cents, or 1.1%, to settle at $76.84 a barrel, while the U.S. West Texas Intermediate crude (WTI) ended at $72.91 a barrel, up 86 cents, or 1.2%.
Gold prices rebounded from their earlier losses on Tuesday, as yields fell and the dollar retreated from its highs, while another round of U.S. debt ceiling talks ended without much progress.
