Market Roundup
•German May Factory Orders (MoM) -3.7%, 1.0% forecast, -0.2% previous
•Spanish May Industrial Production (YoY) 26.0%, 22.1% forecast, 48.2% previous
•German Jun IHS Markit Construction PMI 47.0, 44.5 previous
•UK Housing Equity Withdrawal (QoQ) 4.0B,-7.0B previous
•UK Jun Construction PMI 66.3,63.8 forecast, 64.2 previous
•EU May Retail Sales (MoM) 4.6%, 4.4%forecast,-3.1% previous
•EU May Retail Sales (YoY) 9.0%,8.2% forecast, 23.9% previous
•German Jul ZEW Current Conditions 21.9,5.0 forecast, -9.1 previous
•German Jul ZEW Economic Sentiment 63.3,75.2 forecast, 79.8 previous
•EU July ZEW Economic Sentiment 61.2, 81.3 previous
Looking Ahead - Economic Data (GMT)
•12:55 US Redbook (YoY) 18.2% previous
•13:45 US June Markit Composite PMI 64.8 previous
•14:00 US June ISM Non-Manufacturing Business Activity 66.3 forecast, 66.2 previous
•14:00 US June CB Employment Trends Index 107.40 previous
•14:00 US June ISM Non-Manufacturing PMI 63.5 forecast, 64.0 previous
•14:00 US June ISM Non-Manufacturing Prices 80.6 previous
•14:00 US June ISM Non-Manufacturing Employment 55.3 previous
•14:00 US Jun ISM Non-Manufacturing New Orders 63.9 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Tuesday caution about the economic impact of the Delta variant of COVID-19 as well as expectations that the European Central Bank will remain dovish bought down euro. The single currency also weakened on unexpected drop in German industrial orders. Data showed orders for German-made goods posted their sharpest slump in May since the first lockdown in 2020, hurt by weaker demand from countries outside the euro zone. Immediate resistance can be seen at 1.1865 (5DMA), an upside break can trigger rise towards 1.1923 (38.2%fib).On the downside, immediate support is seen at 1.1829 (23.6%fib), a break below could take the pair towards 1.1743(Lower BB).
GBP/USD: Sterling nudged higher against dollar on Tuesday after Britain set plans to end COVID-19 restrictions in a fortnight. British Prime Minister Boris Johnson set out plans on Monday to end social and economic COVID-19 restrictions in England in two weeks’ time, a test of whether a rapid vaccine rollout offers enough protection from the highly contagious Delta variant. Johnson confirmed the government aimed to end restrictive measures on July 19, with a final decision to be taken next week. Sterling reached $1.3798 against the dollar in early deals in London, its highest since June 28. Immediate resistance can be seen at 1.3891 (5DMA), an upside break can trigger rise towards 1.3936(20DMA).On the downside, immediate support is seen at 1.3810 (23.6%fib), a break below could take the pair towards 1.3734 (2nd June low).
USD/CHF: The dollar steadied against the Swiss franc on Tuesday as investors wait on the minutes from the Federal Reserve's meeting in June. Focus this week is on minutes from the Fed’s latest meeting due out on Wednesday, after a hawkish tilt from the U.S. central bank last month in which policymakers projected a start to rate hikes in 2023. At ( GMT 11:40),greenback edged higher 0.08% versus the Swiss franc to 0.9226.Immediate resistance can be seen at 0.9226 (23.6%fib), an upside break can trigger rise towards 0.9245(Daily high).On the downside, immediate support is seen at 0.9210 (9DMA), a break below could take the pair towards 0.9193 (38.2%fib).
USD/JPY: The dollar dipped against the Japanese yen on Tuesday as the dollar drifted lower on easing pressure for U.S. rate hikes in the wake of mixed jobs data. The dollar fell, extending losses since U.S. labour market data last week that was upbeat but not so strong as to risk bringing forward the day when the Federal Reserve might start tapering its asset buying. Focus this week is on minutes from the Fed's latest meeting due out on Wednesday, after a hawkish tilt from the U.S. central bank last month in which policymakers projected a start to rate hikes in 2023. Strong resistance can be seen at 110.92(23.6%fib), an upside break can trigger rise towards 111.20(July 5th high).On the downside, immediate support is seen at 110.49(38.2%fib), a break below could take the pair towards 110.14 (50%fib).
Equities Recap
European stocks slipped on Tuesday after three sessions of gains as gloomy trading in Asia and an unexpected drop in German industrial orders offset a jump in commodity stocks.
At (GMT 11:30),UK's benchmark FTSE 100 was last trading lower at 0.22 percent, Germany's Dax was down by 0.36 percent, France’s CAC was trading down by 0.32 percent.
Commodities Recap
Gold rose above the $1,800/ounce psychological level on Tuesday to hit a three-week high, as a pullback in the dollar lifted bullion demand, while investors awaited minutes from the U.S. Federal Reserve’s June meeting for clarity on monetary policy.
Spot gold climbed 0.7% to $1,804.50 per ounce by 0652 GMT, after touching its highest level since June 17.U.S. gold futures jumped 1.3% to $1,806.30 per ounce.
Oil prices surged to multi-year highs on Tuesday including U.S. crude hitting its highest since 2014 after OPEC+ producers fell out over plans to raise supply in the face of rising global demand.
Brent crude climbed 62 cents, or 0.8%, to $77.78 a barrel by 0748 GMT, a level not seen since October 2018.
U.S. West Texas Intermediate (WTI) crude futures traded up $1.75, or 2.3%, at $76.91, their highest since November 2014.
