Market Roundup
• US June Durables Excluding Defense (MoM) 1.0%, 1.7% previous
• US June Core Durable Goods Orders (MoM) 0.3%,0.8% forecast, 0.3% previous
• US June Durable Goods Orders (MoM) 0.8%,2.1% forecast, 2.3% previous
• US June Goods Orders Non Defense Ex Air (MoM) 0.5%, 0.7% forecast, 0.1% previous
• US Redbook (YoY) 16.0%,15.0% previous
• US May S&P/CS HPI Composite - 20 s.a. (MoM) 1.8%, 1.6% forecast, 1.6% previous
• US May S&P/CS HPI Composite - 20 n.s.a. (YoY) 17.0%, 16.4% forecast, 14.9% previous
• US May House Price Index (MoM) 1.7%,1.8% previous
• US Jul CB Consumer Confidence 129.1, 123.9 forecast, 127.3 previous
• US Jul Richmond Manufacturing Index 27, 22 previous
• US Jul Richmond Manufacturing Shipments 21, 8 previous
• US Jul Dallas Fed Services Revenues 21.7, 16.7 previous
Looking Ahead –Economic Data (GMT)
•01:30 Australia CPI (YoY) (Q2) 3.8% forecast, 1.1% previous
•01:30 Australia Weighted mean CPI (YoY) (Q2) 1.7% forecast, 1.3% previous
•01:30 Australia Trimmed Mean CPI (YoY) (Q2) 1.6% forecast, 1.1% previous
•01:30 Australia Weighted mean CPI (QoQ) (Q2) 0.5% forecast, 0.4% previous
•01:30 Australia Trimmed Mean CPI (QoQ) (Q2) 0.5% forecast, 0.3% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro gained on Tuesday as greenback dipped investors were cautious ahead of the Federal Reserve meeting. They key event of the week for markets is the Fed meeting, where investors will look for Chair Jerome Powell’s comments about the timing for the start of tapering of the central bank’s asset purchases. The euro edged up 0.26%, changing hands at $1.1833 versus the greenback. Immediate resistance can be seen at 1.1840 (38.2%fib), an upside break can trigger rise towards 1.1900 (50% fib).On the downside, immediate support is seen at 1.1793 (5DMA), a break below could take the pair towards 1.1768 (23.6%fib).
GBP/USD: The British pound rebounded against the dollar, reaching its highest level in more than a week on Tuesday, in a sudden move that occurred just as the daily currency benchmarks were being calculated. The pound suddenly rose around 1500 GMT in London, the time the daily currency benchmarks are calculated, then traded 0.5% higher to $ 1.3891, its highest level since July 15. Immediate resistance can be seen at 1.3903 (15th July high),an upside break can trigger rise towards 1.3953 (23.6%fib).On the downside, immediate support is seen at 1.3853 (38.2%fib), a break below could take the pair towards 1.3819 (5DMA).
USD/CAD: The loonie weakened against its US counterpart on Tuesday as a sharp decline in the Chinese stock market hurt sentiment and a record low in bond yields after adjusting for inflation signaled concerns about the economic outlook. US shares fell from record highs while real US bond yields hit record lows as further selling of Chinese internet giants, concerns over economic growth and a Federal Reserve interest rate decision on Wednesday kept some investors on the alert. The loonie was last trading 0.4% lower at 1.2589 to the greenback.Immediate resistance can be seen at 1.2665(23.6%fib), an upside break can trigger rise towards 1.2703(21st July high).On the downside, immediate support is seen at 1.2582(38.2%fib), a break below could take the pair towards 1.2523(50%fib).
USD/JPY: The dollar edged lower against the Japanese yen Tuesday as investors waited for the outcome of the Fed's two-day monetary policy meeting .All eyes will be on what Fed Chairman Jerome Powell says in a press conference following the Wednesday meeting at 2 p.m. EDT (1800 GMT), particularly regarding inflation, economic growth, interest rates, and when the Fed is likely to start is going to reduce their purchases of government bonds. Strong resistance can be seen at 110.89(38.2%fib), an upside break can trigger rise towards 110.11 (5DMA).On the downside, immediate support is seen at 110.58 (50%fib), a break below could take the pair towards 109.24(61.8%fib).
Equities Recap
European stocks lost ground on Tuesday after falls in Chinese shares and Reckitt Benckiser’s warning on margins ahead of earnings updates from big fashion retailers later in the day.
UK's benchmark FTSE 100 closed down by 0.42 percent, Germany's Dax ended down by 0.64percent, France’s CAC finished the day up by 0.71 percent.
U.S. stocks ended lower on Tuesday, led by declines in the Nasdaq as investors were cautious before results from top tech and internet names and Wednesday’s Federal Reserve announcement.
Dow Jones closed down by 0.24 percent, S&P 500 closed down by 0.47 percent, Nasdaq settled down by 1.21 % percent.
Treasuries Recap
US government bond yields fell on Tuesday as risk appetite eased amid concerns over high inflation and the rapid spread of the delta coronavirus, which could hurt global economic growth.
In late afternoon trading, the U.S. 10-year Treasury yield slid to 1.239% from 1.276% late on Monday. U.S. 30-year yields dropped to 1.891% from Monday's 1.925%.
Commodities Recap
Gold surged near the key $ 1,800 level on Tuesday as the dollar weakened and US yields fell, although gains were capped by investor caution ahead of a Fed meeting that may provide details on stimulus tapering.
Spot gold rose 0.2% to $1,800.46 per ounce by 02:39 p.m. EDT (1839 GMT). U.S. gold futures settled little changed at $1,799.8.
Oil prices steadied on Tuesday ahead of the US inventory data release as investors feared rising COVID19 cases could hurt global demand even as supply dwindles and vaccination rates rising. Tightening.
Brent futures slipped 2 cents to settle at $74.48 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 26 cents, or 0.4%, to settle at $71.65.
