Market Roundup
•US Jul PPI (MoM) 0.1%,0.2% forecast,0.2% previous
•US PPI (YoY) 2.2%,2.3% forecast,2.6% previous
•US Jul PPI ex. Food/Energy/Transport (MoM) 0.3% , 0.1% previous
•US Jul Core PPI (MoM) 0.0%,0.2% forecast,0.4% previous
•US Jul PPI ex. Food/Energy/Transport (YoY) 3.3%,3.1% previous
•US Jul Core PPI (YoY) 2.4%,2.7% forecast,3.0% previous
•US Redbook (YoY) 4.7%,5.1% previous
Looking Ahead Economic Data(GMT)
•02:00 New Zealand RBNZ Interest Rate Decision 5.50% forecast,5.50% previous
Looking Ahead Events and Other Releases (GMT)
• 02:00 New Zealand RBNZ Rate Statement
•02:00 New Zealand RBNZ Monetary Policy Statement
•03:00 New Zealand RBNZ Press Conference
Currency Summaries
EUR/USD: The euro rose on Tuesday as dollar dipped after data showed U.S. producer prices increased less than expected in July. The producer price index for final demand edged up 0.1% last month after rising by an unrevised 0.2% in June, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast the PPI gaining 0.2%.Traders now look forward to U.S. July consumer price index (CPI) data due on Wednesday and the retail sales data on Thursday for further direction on U.S. central bank's next policy move. Traders are pricing in about 54% chance of a 50-basis-point Fed rate cut in September, according to the CME Group's FedWatch tool. The euro was rose 0.6% to $1.09968. Immediate resistance can be seen at 1.0977(23.6%fib), an upside break can trigger rise towards 1.1020(Higher BB).On the downside, immediate support is seen at 1.0937(38.2%fib), a break below could take the pair towards 1.0896(50%fib).
GBP/USD: The pound rose on Tuesday after data showed Britain's unemployment rate unexpectedly fell in June, although wage growth slowed. Figures showed the UK jobless rate dropped to 4.2% in June, down from 4.4% in May defying expectations for a small rise. The labour market data also showed that job vacancies fell while annual growth in average weekly earnings excluding bonuses slowed to 5.4% in the three months through June, the lowest since August 2022, from 5.8% in May. Sterling was last up 0.22% at $1.2794, from $1.2779 before the data, as investors focused on the strength of the labour market and its potential impact on Bank of England policy . Immediate resistance can be seen at 1.2818(38.2%fib), an upside break can trigger rise towards 1.2865(23.6%fib).On the downside, immediate support is seen at 1.2774(50%fib), a break below could take the pair towards 1.2731(61.8%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday after soft U.S. inflation data maintained hopes for a September rate cut by the Federal Reserve.The U.S. producer prices index rose less than expected to 0.1% in July, while it moderated to 2.2% on a yearly basis, an indication that inflation pressures continued to moderate.Analysts said they are looking forward to Wednesday's consumer price index (CPI) data in the U.S. that could indicate if a September rate cut is on the cards. The loonie was trading 0.2% higher at C$1.3712 to the greenback, or 72.93 U.S. cents, after trading in a range of 1.3709 to 1.3747.Immediate resistance can be seen at 1.3740 (38.2% fib), an upside break can trigger rise towards 1.3773 (50% fib).On the downside, immediate support is seen at 1.3700(23.6% fib), a break below could take the pair towards 1.3674 (Lower BB).
USD/JPY: The dollar eased against yen on Tuesday after data showed U.S. producer prices increased less than expected in July. The producer price index for final demand gained 0.1% last month after rising by an unrevised 0.2% in June, the Labor Department's Bureau of Labor Statistics said on Tuesday. Economists polled had forecast the PPI gaining 0.2%.Data this week could sharpen views on the Federal Reserve's next move. Markets are currently evenly split between a 25 basis-point cut or a 50-bp cut at the next meeting in September. Traders are pricing in 100 bps of cuts this year. U.S. consumer price index data for July is due on Wednesday and expected to show month-on-month inflation ticked up to 0.2%. Retail sales data is scheduled for Thursday.The yen was firmer against the dollar at 146.77 per dollar . Strong resistance can be seen at 148.45(38.2 %fib), an upside break can trigger rise towards 150.80 (50%fib). On the downside, immediate support is seen at 145.43(23.6%fib), a break below could take the pair towards 143.00(Lower BB).
Equities Recap
Europe's benchmark stock index closed at a near two-week high on Tuesday, as growing hopes of an interest rate cut from the U.S. Federal Reserve in September offset a drag from weak earnings from the likes of Swiss medtech firm Tecan.
UK's benchmark FTSE 100 was last trading up at 0.30 percent, Germany's Dax was up by 0.48 percent, France’s CAC finished was up by 0.36 percent.
U.S. indexes closed up on Tuesday and hit a near two-week high after softer producer prices data reinforced bets of an interest-rate cut by the Federal Reserve in September..
Dow Jones closed higher by 1.04 percent, S&P 500 was up 1.68 percent, Nasdaq was up by 2.40 percent.
Commodities Recap
Gold prices steadied on Tuesday to hover close to an all-time high hit in July, as the dollar and Treasury yields crept lower after U.S. producer price data cemented hopes for a interest rate cut from the Federal Reserve in September.
Spot gold was down 0.2% to $2,467.80 per ounce by 1:54 p.m ET (1754 GMT) due to some profit-taking. Non-yielding gold touched a record high of $2,483.60 on July 17 and is up 20% so far this year.U.S. gold futures for December delivery settled 0.2% higher at $2,507.80.
International crude oil prices fell more than $1 a barrel on Tuesday, August 13, as markets saw reduced risk of a wider war in the Middle East.
Benchmark Brent crude futures were down $1.16, or 1.4% at $81.16 a barrel while U.S. West Texas Intermediate crude was down $1.11, or 1.4%, at $78.95 a barrel.
