Market Roundup
• Trump jawbones Fed on rates, wishing for rocket-like economy
• US Apr Consumer Confidence, 129.2, 126.0 forecast, 124.1 previous, 124.2 revised
• US Apr Chicago PMI, 52.6, 59.0 f'cast, 58.7 previous
• US 27 Apr, w/e Redbook YY, 5.5%, 6.0% previous
• US Feb CaseShiller 20 YY, 3.0%, 3.2% forecast, 3.6% previous, 3.5% revised
• Euro zone Q1 economic growth stronger than expected, unemployment falls
• Britain's opposition Labour sticks to second Brexit referendum stance
• CA Feb GDP MM, -0.1%, 0.0% forecast, 0.3% previous
• CA Mar Producer Prices MM, 1.3%, 0.7% forecast 0.3% previous
• CA Mar Producer Prices YY, 1.5%, 1.2% previous
• CA Mar Raw Materials Prices MM, 2.8%, 3.9% forecast, 4.6% previous, 3.0% rvsd
Looking Ahead - Economic Data (GMT)
• 30 Apr 22:30 Australia Apr AIG Manufacturing Index, 51.0 previous
• 30 Apr 22:45 New Zealand Q1 HLFS Unemployment Rate, 4.2% forecast, 4.3% previous
• 30 Apr 22:45 New Zealand Q1 HLFS Job Growth QQ, 0.5% forecast, 0.1% previous
• 30 Apr 22:45 New Zealand Q1 HLFS Participation Rate, 70.9% forecast, 70.9% previous
• 30 Apr 22:45 New Zealand Q1 Labour Cost Index QQ, 0.5% forecast, 0.5% previous
• 30 Apr 22:45 New Zealand Q1 Labour Cost Index YY, 2.1% forecast, 2.0% previous
Looking Ahead - Events, Other Releases (GMT)
• N/A U.S. Federal Reserve's Federal Open Market Committee (FOMC) commences its two-day meeting on interest rates in Washington, D.C.
• 08:30 City Lecture with Luis de Guindos, Vice-President, European Central Bank organised by OMFIF in London
• 13:15 The chairman of the Bank of England oversight body, Bradley Fried, speaks to the Treasury Committee in parliament in London
• 18:00 Fed’s FOMC announces its decision on interest rates followed by a statement in Washington, D.C.
• 18:30 U.S. Federal Reserve chairperson holds a news conference in Washington, D.C.
• 20:15 BoC Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins testify to the Senate banking committee in Ottawa
Currency Summaries
EUR/USD: The euro strengthened to hit 1-week high against dollar on Tuesday, as upbeat first-quarter Euro zone economic growth figures beat market expectations. Euro zone economic growth accelerated to 0.4% in the first three months of 2019, recovering from a slump in the second half of last year, data showed on Tuesday. The strong data offered some relief to traders after a disappointing manufacturing PMI survey this month and cautious comments from European Central Bank policymakers raised concerns that the broader economy is struggling to gain traction.The euro was up 0.28 percent at $1.1215. Immediate resistance can be seen at 1.1231 (21 DMA), an upside break can trigger rise towards 1.1274 (50 DMA).On the downside, immediate support is seen at 1.1164 (5 DMA), a break below could take the pair towards 1.1100 (Psychological level).
GBP/USD: The Sterling strengthened against the dollar on Tuesday, after media reports that the tone of Brexit talks between the British government and the main opposition party had improved.Prime Minister Theresa May is seeking a consensus with Labour to get a Brexit deal approved and wants talks to reach a conclusion by the middle of next week, several British journalists reported on Tuesday. The pound rose to as high as $1.3040, up 0.81 percent on the day. Immediate resistance can be seen at 1.3046 (Daily high), an upside break can trigger rise towards 1.3101 (50 DMA).On the downside, immediate support is seen at 1.2965 (11 DMA), a break below could take the pair towards 1.2934 (5 DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday, but was trading below an earlier six-day high as data showing a surprise contraction in the domestic economy offset higher oil prices and broad weakening of the greenback.The Canadian economy shrank by 0.1% in February, pulled down in part by weakness in the mining sector and bad weather that hurt rail transport, Statistics Canada data indicated. The price of oil, one of Canada's major exports, rose as Venezuela's opposition leader called on the military to back him to end Nicolas Maduro's rule. At (2057 GMT), the Canadian dollar last was trading 0.48% higher at 1.3392 to the greenback. Immediate resistance can be seen at 1.3422 (9 DMA), an upside break can trigger rise towards 1.3482 (Daily high).On the downside, immediate support is seen at 1.3378 (21 DMA), a break below could take the pair towards 1.3343 (50 DMA).
USD/JPY: The dollar weakened against the Japanese yen on Tuesday, as an unexpected slowdown in Chinese factory activity Increased demand for safe haven assets. Growth in China's factory activity unexpectedly slowed in April, an official survey showed on Tuesday, suggesting the economy is still struggling to regain traction despite a flurry of support measures. The official Purchasing Managers' Index (PMI) fell to 50.1 in April from 50.5 in March, which had been the first expansion in four months, data from the statistics bureau showed. The 50-point mark separates expansion from contraction on a monthly basis.The dollar was 0.01 percent lower versus the Japanese yen at 111.47. Strong resistance can be seen at 111.68 (21 DMA), an upside break can trigger rise towards 112.40 (April 24th high).On the downside, immediate support is seen at 111.33 (50 DMA), a break below could take the pair towards 110.76 (100 DMA).
Equities Recap
European shares closed little changed on Tuesday as a decline in banks after disappointing earnings was countered by gains in oil stocks and a 21 percent surge in chipmaker AMS.
UK's benchmark FTSE 100 closed up by 0.3 percent, the pan-European FTSEurofirst 300 ended the day up by 0.06 percent, Germany's Dax ended up by 0.03 percent, France’s CAC finished the day up by 0.01 percent.
The Nasdaq fell on Tuesday as shares of Google-parent Alphabet tumbled following a revenue miss and Apple dropped, though the S&P 500 eked out another record closing high.
Dow Jones closed up by 0.12 percent, S&P 500 ended up 0.07 percent, Nasdaq finished the day down by 0.68 percent.
Treasuries Recap
U.S. Treasury prices gained on Tuesday after weak regional manufacturing data raised some concerns about the economy and as month-end repositioning boosted demand for the debt.
Commodities Recap
Gold prices firmed on Tuesday as the dollar slipped to a one-week low, making bullion more attractive, with investors awaiting the Federal Reserve's interest rate decision this week to gauge the outlook for U.S. monetary policy.
Spot gold rose 0.3 percent to $1,283.66 per ounce as of (2117 GMT). U.S. gold futures settled up 0.3 percent at $1,285.70 an ounce.
Oil prices pared their gains on Tuesday, after global benchmark Brent crude rose above $73 a barrel, as the market grew less worried that a rebellion against Venezuelan President Nicolas Maduro would hit the country's crude exports.
Brent crude futures hit a session high of $73.27 per barrel and settled 76 cents, or 1.1 percent, higher at $72.80. Last week, Brent hit a six-month high above $75.
U.S. crude futures closed at $63.91, up 41 cents, or 0.7 percent, on the day, after hitting a session high at $64.75.
