Market Roundup
• US Redbook (YoY) 5.0%,4.9% previous
•US Jun House Price Index (MoM) 0.1% forecast,0.0% previous
•US Jun House Price Index (YoY) 5.1%, 5.9% previous
•US Jun House Price Index 424.5, 424.6 previous
•US Jun S&P/CS HPI Composite - 20 s.a. (MoM) 0.4%, 0.3% forecast, 0.3% previous
•US Jun S&P/CS HPI Composite - 20 n.s.a. (MoM) -0.6% , 1.0% previous
•US Jun S&P/CS HPI Composite - 20 n.s.a. (YoY) 6.5%,6.2% forecast, 6.8% previous
•US Aug Dallas Fed Services Revenues 8.7, 7.7 previous
•US Aug Texas Services Sector Outlook -7.7, -0.1 previous
Looking Ahead Economic Data (GMT)
• 01:30 Australia Construction Work Done (QoQ) (Q2) 0.8% forecast, -2.9% previous
• 01:30 Australia Jul Weighted mean CPI (YoY) 3.40% forecast, 3.80% previous
• 05:00 Japan Jun Coincident Indicator (MoM) -3.4% forecast, 1.9% previous
• 05:00 Japan Jun Leading Index 108.6 forecast, 111.2 previous
• 05:00 Japan Jun Leading Index (MoM) -2.6% forecast, 0.3% previous
Looking Ahead Events And Other Releases (GMT)
• 05:15 US Fed Waller Speaks
EUR/USD: The euro edged lower slightly against the dollar on Tuesday as investors were cautious ahead of key Eurozone economic data later this week. Investors are seeking additional insights into the economic health of the eurozone and further guidance on the policy directions of both the European Central Bank and the Federal Reserve, with key rate decisions approaching in September. ECB policymaker Klaas Knot indicated that the eurozone central bank could gradually lower interest rates if inflation continues to decrease, but more data is needed before finalizing a September rate cut. Immediate resistance can be seen at 1.1184(Daily high), an upside break can trigger rise towards 1.1200(Higher BB).On the downside, immediate support is seen at 1.1098(38.2%fib), a break below could take the pair towards 1.1070 (Aug 20th low).
GBP/USD: The pound rose to its highest level against the U.S. dollar in over two years, and other major currencies also strengthened. This was partly due to a pause in the rise of oil prices, which led investors to shift away from the dollar after the previous session's movements. Market sentiment continues to be influenced by the anticipation of upcoming U.S. rate cuts, which have pressured the dollar recently. Investors largely expect a rate cut at the Federal Reserve's September meeting, with current discussions centering on whether it will be a 50-basis-point cut or a smaller 25-basis-point reduction. Sterling has been one beneficiary of the weakness in the U.S. currency. Immediate resistance can be seen at 1.3107(23.6%fib), an upside break can trigger rise towards 1.3128(Higher BB).On the downside, immediate support is seen at 1.3006(38.2%fib), a break below could take the pair towards 1.2936(50%fib).
USD/CAD: The Canadian dollar reached a five-month high against the U.S. dollar, driven by recent broad-based selling of the American currency and the anticipation of domestic GDP data later in the week. Currency movements continue to be influenced by expectations of upcoming U.S. interest rate cuts. Economists expect Canadian gross domestic product data, due on Friday, to show the economy expanding at an annualized pace of 1.6% in the second quarter. The BoC's most recent forecast is for a gain of 1.5%.The price of oil, one of Canada's major exports, was down 2.3% at $75.67 a barrel on Tuesday on worries that slower economic growth in the U.S. and China could reduce demand for energy. Immediate resistance can be seen at 1.3494 (38.2%fib), an upside break can trigger rise towards 1.3545(50%fib).On the downside, immediate support is seen at 1.3444(23.6%fib), a break below could take the pair towards 1.3418 (Lower BB).
USD/JPY: The dollar retreated against the Japanese yen on Tuesday after data showed U.S. house prices fell by 0.1% month-on-month following no change in May. Over the year through June, prices rose by 5.1%, marking the smallest annual increase since July 2023.Tuesday's report also showed U.S. consumer confidence rose in August. The Conference Board' consumer confidence index increased to 103.3 this month from an upwardly revised 101.9 in July. The market though showed little reaction to the data. Investors are awaiting data on the preliminary estimate for gross domestic product in the second quarter, jobless claims, and personal consumption expenditures (PCE) index, the Fed's preferred inflation gauge. Strong resistance can be seen at 145.00(Psychological level), an upside break can trigger rise towards 146.56(38.2 %fib). On the downside, immediate support is seen at 143.56(23.6 %fib), a break below could take the pair towards 142.45(Lower BB).
Equities Recap
European shares were lifted on Tuesday by gains in banking and airline stocks, although trading remained cautious as investors awaited key economic data later in the week.
UK's benchmark FTSE 100 closed up by 0.21 percent, Germany's Dax ended up by 0.35 percent, France’s CAC finished the day down by 0.32 percent.
The S&P 500 closed higher on Tuesday, and the Dow Jones reached a record high, ahead of Nvidia's highly anticipated quarterly report on Wednesday and upcoming economic data later in the week that could provide insights into future interest rate cuts.
Dow Jones closed up by 0,02% percent, S&P 500 closed down by 0.16% percent, Nasdaq settled up by 0.17% percent.
Commodities Recap
Gold prices increased on Tuesday, supported by a weaker dollar, as investors awaited inflation data that could offer clues about the extent of the anticipated Federal Reserve interest rate cut next month.
Spot gold increased by 0.3% to $2,524.94 per ounce as of 2:57 p.m. ET (1857 GMT), just below last week's record high of $2,531.60. Meanwhile, U.S. gold futures settled 0.1% lower at $2,552.90.
Oil prices fell approximately 2% on Tuesday amid concerns that slower economic growth in the U.S. and China could dampen energy demand, following a more than 7% surge in prices over the previous three days.
Brent futures fell $1.88, or 2.3%, to settle at $79.55 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.89, or 2.4%, to settle at $75.53.
