Market Roundup
•US Redbook (YoY) 15.5%,13.3% previous
•Canada Jul Manufacturing PMI 52.5,54.6 previous
•US Jun JOLTs Job Openings 10.698M, 11.000M forecast, 11.254M previous
• New Zealand GlobalDairyTrade Price Index -5.0%,-5.0% previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro dipped against dollar on Tuesday as remarks by U.S. Federal Reserve officials hinted that more interest rate hikes are coming in the near term. On Tuesday, San Francisco Fed President Mary Daly and Chicago Fed President Charles Evans signalled that they and their colleagues remain resolute and “completely united” over getting rates up to a level that will more significantly curb economic activity. Traders now see a chance of about 44% that the Fed will hike by another 75 basis points at its next meeting in September. The U.S. dollar index , which measures the greenback against six peers, was last up 0.9% at 106.31. Immediate resistance can be seen at 1.0194(11DMA), an upside break can trigger rise towards 1.0301(Higher BB).On the downside, immediate support is seen at 1.0142(23.6%fib), a break below could take the pair towards 1.0095(July 27th low).
GBP/USD: The British pound weakened against the dollar and euro on Tuesday as traders turned to safe-haven currencies amid rising U.S.-China tensions over Taiwan, with traders looking ahead to a Bank of England policy meeting this week. The pound was down 0.7% against the dollar at $1.2156 . The BoE will announce its decision on Thursday, with investors now pricing in an 95% chance of a 50 basis point hike, a bigger increase than the previous four hikes as the central bank rushes to contain soaring inflation without exacerbating an economic slowdown. Immediate resistance can be seen at 1.2241(38.2%fib), an upside break can trigger rise towards 1.2323(Higher BB).On the downside, immediate support is seen at 1.2125(9DMA),a break below could take the pair towards 1.2064(23.6%fib).
USD/CAD : The Canadian dollar edged lower against its broadly stronger U.S. counterpart on Tuesday as investors weighed rising tensions between the United States and China, but the currency's decline was limited as oil prices moved higher. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to shifts in risk appetite. Data showed that Canadian manufacturing activity lost further momentum in July as production and new orders declined for the first time since the early stages of the coronaviruspandemic. The loonie was trading 0.2% lower at 1.2850 to the greenback, after moving in a range of 1.2834 to 1.2878. It was the smallest decline among G10 currencies. Immediate resistance can be seen at 1.2933 (23.6%fib), an upside break can trigger rise towards 1.3000 (Psychological level).On the downside, immediate support is seen at 1.2857 (11DMA), a break below could take the pair towards 1.2834(38.2%fib).
USD/JPY: The dollar strengthened against yen on Tuesday as rising U.S.-China tensions over Taiwan and deepening worries about a global economic slowdown boosted the appeal of safe-haven dollar. The greenback continued its rise versus the safe-haven yen, extending its best gain for six weeks, as U.S. Treasury yields also rebounded after House Speaker Nancy Pelosi’s arrival in Taiwan was met with a strong, but not off-the-scale response by China. The U.S. dollar index, which gauges the currency against six major peers including the yen, was 0.05% higher at 106.50, after rebounding 1% overnight following its slide to a nearly one-month low at 105.03.The dollar rose 0.521% to 133.84 yen, after jumping 1.2% on Tuesday. Strong resistance can be seen at 134.76(9DMA), an upside break can trigger rise towards 135.05(23.6%fib).On the downside, immediate support is seen at 132.33 (38.2%fib), a break below could take the pair towards 131.26 (Lower BB).
EquitiesRecap
European stocks closed on a weak note on Tuesday as traders weighed near term prospects for the market amid concerns about slowing growth and rising rates, and largely refrained from creating fresh positions.
UK's benchmark FTSE 100 closed down by 0.06 percent, Germany's Dax ended down by 0.23 percent, France’s CAC finished the day down by 0.42 percent.
U.S. stocks ended a choppy session lower on Tuesday, while the dollar rallied as risk appetite was dampened by economic uncertainties and escalating U.S.-China tensions.
Dow Jones closed down by 1.22% percent, S&P 500 closed down by 0.67% percent, Nasdaq settled down by 0.16% percent.
Treasuries Recap
U.S. Treasuries rallied on Tuesday, pushing 10-year bond yields to four-month lows, on unease that a visit by U.S. House of Representatives Speaker Nancy Pelosi to Taiwan would intensify Sino-U.S. tensions.
Safe-haven 10-year Treasuries fell as much as 9 basis points to 2.516%, a four-month low.
Commodities Recap
Gold hit its highest level in about a month on Tuesday as China-U.S. tensions and fears of a possible recession in America burnished bullion’s safe-haven appeal.
Spot gold was little changed at $1,771.59 per ounce by 1:59 p.m. EDT (1759 GMT). U.S. gold futures settled 0.1% higher at $1,789.70.
Oil futures edged up less than 1% on Tuesday ahead of a meeting of OPEC+ producers this week that may not lead to a further boost in crude supply amid concerns a possible global recession could limit energy demand.
Brent futures rose 51 cents, or 0.5%, to settle at $100.54 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 53 cents, or 0.6%, to settle at $94.42.
