Market Roundup
•GlobalDairyTrade Price Index 1.7% ,3.3% previous
•US Factory Apr orders ex transportation (MoM) 0.7%, 0.4% forecast,0.5% previous
•US IBD/TIPP Economic Optimism 40.5 ,45.2 forecast,41.8 previous
•US Apr JOLTs Job Openings 8.059M, 8.370M forecast,8.488M previous
•US Factory Orders (MoM) 0.7% ,0.7% forecast,1.6% previous
Looking Ahead Economic Data(GMT)
•00:30 Australia GDP (YoY) (Q1) 1.2% forecast, 1.5% previous
•00:30 Australia GDP Final Consumption (Q1) 0.2% previous
•00:30 Australia GDP Capital Expenditure (Q1) -0.2% previous
•00:30 Australia GDP Chain Price Index (Q1) 2.0% previous
•00:30 Australia GDP (QoQ) (Q1) 0.2% forecast,0.2% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
EUR/USD: The euro dipped on Tuesday as investors refrained from taking position before the European Central Bank's interest rate decision later this week. All eyes are now on the ECB's interest rate decision on Thursday, where the central bank is expected to cut borrowing costs by 25 basis points (bps) from record-high levels, according to a poll. Market participants anticipate rate cuts owing to the encouraging signs of easing inflation in the region. However, the May inflation reading ticking higher has cast doubts on the number of rate cuts this year. The euro was last down 0.4% at $1.0863 on Tuesday. It climbed 0.5% as the dollar dropped on Monday. Immediate resistance can be seen at 1.0919(23.6%fib), an upside break can trigger rise towards 1.0940(Higher BB).On the downside, immediate support is seen at 1.0877(38.2% fib), a break below could take the pair towards 1.0848(50% fib).
GBP/USD: Sterling declined against dollar on Tuesday as risk-off mood set in as market participants awaited the ECB's rate verdict on Thursday, where it is expected to ease borrowing costs by 25 basis points.The recent uptick in the euro zone inflation data, however, has cast doubt on further monetary easing prospects this year. Analysts predict the Bank of England (BoE) will closely shadow the ECB's movements. However, traders have priced in a 25-basis-point cut by the BoE only in November. Sterling hit its highest since mid-March too at $1.2818 before falling to sit 0.43% lower. Immediate resistance can be seen at 1.2817 (23.6%fib), an upside break can trigger rise towards 1.2856(38.2% fib).On the downside, immediate support is seen at 1.2734(38.2%fib), a break below could take the pair towards 1.2668(50% fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday as oil prices fell and investors braced for the potential start this week of an interest rate cutting campaign by the Bank of Canada. The Canadian central bank would be willing to cut interest rates three times ahead of the Fed's first move before a declining currency threatens to endanger the inflation outlook, the median estimate of seven analysts in a straw poll last month showed.Investors see a roughly 80% chance the BoC would cut its benchmark interest rate on Wednesday for the first time since March 2020, swap market data shows. The loonie was trading 0.4% lower at 1.3680 to the U.S. dollar, or 73.10 U.S. cents, after trading in a range of 1.3621 to 1.3698 .Immediate resistance can be seen at 1.3698 (23.6% fib), an upside break can trigger rise towards 1.3728 (Higher BB).On the downside, immediate support is seen at 1.3638(38.2% fib), a break below could take the pair towards 1.3598(50% fib).
USD/JPY: The U.S. dollar gained against yen on Tuesday as awaited on an interest rate decision in Canada and on U.S. services data. The risk that the U.S. economy might be softening more than expected was brought to the fore again after Tuesday's data showed job openings fell more than forecast in April to the lowest in more than three years.That helped to reinforce some investor speculation that the Federal Reserve could be on track to lower interest rates this year as a cooling economy tempers inflation pressures. In response, Treasury yields briefly extended their declines early in the session, before recovering somewhat. The yen eased 0.2% to 155.27. Strong resistance can be seen at 156.77(23.6%fib), an upside break can trigger rise towards 157.69(Higher BB).On the downside, immediate support is seen at 154.90(38.2% fib), a break below could take the pair towards 153.30 (50%fib).
Equities Recap
European shares slipped on Tuesday as falling commodity prices weighed on mining and energy stocks, though caution remained ahead of European Central Bank's interest rate decision later this week.
UK's benchmark FTSE 100 closed down by 0.37 percent, Germany's Dax ended down by 1.03 percent, France’s CAC finished the day down by 0.75 percent.
U.S. stocks ended a shade higher on Tuesday following softer-than-expected labor market data that reaffirmed expectations of an interest rate cut by the Federal Reserve..
Dow Jones closed up by 0.36 percent, S&P 500 ended up by 0.15 percent, Nasdaq finished the day up by 0.15 percent.
Commodities Recap
Gold dropped 1% to $2,326.98 an ounce, while copper , which hit record-highs last month, rose 1.5% to $10,193 a tonne.
Oil prices fell more than $1 a barrel on Tuesday on scepticism about an OPEC+ decision to boost supply later this year into a global market where demand has already shown signs of weakness.
Brent traded at $76.76, less than $2 shy of this year's nadir of $74.79 at the beginning of January.
U.S. West Texas Intermediate crude futures finished down 97 cents, or 1.31%, at $73.25. WTI had fallen by 3.6% on Monday to settle near a four-month low.
