EURUSD
- EUR/USD edged higher, reaching 1.0939 and maintaining proximity to a one-month peak. The pair demonstrates continued strength in the euro against the U.S. dollar.
- ECB's chief economist Philip Lane stated that it is premature to commit to another interest rate hike in September. However, some ECB colleagues believe that persistent high underlying inflation necessitates further tightening measures.
- In early European trade on Tuesday, the U.S. dollar gained strength, as investors sought its safe-haven appeal amidst concerns over slowing economic growth despite a rate cut by China's central bank.
- Important U.S. economic data is expected on Tuesday, including housing starts and building permits figures for May. These data points provide insights into the strength of the housing market, which has significant implications for the overall economy.
- FOMC member James Bullard is scheduled to deliver a speech, and his remarks will be closely monitored for any indications of the Federal Reserve's monetary policy stance.
| SMA (20) | Slightly Rising |
| |||
| RSI (14) | Slightly Rising |
| |||
| MACD (12, 26, 9) | Rising |
|
|
Closing statement: EUR/USD remains near its one-month peak as ECB officials engage in discussions on interest rate hikes. With differing views among policymakers and the U.S. dollar finding support amidst global economic concerns, investors will closely watch upcoming economic data releases and central bank speeches for further guidance on the currency pair's trajectory.
GBPUSD
- GBP/USD declined by 0.1% to 1.2783, but it remains near 14-month highs as traders anticipate the Bank of England's interest rate hike on Thursday.
- Market expectations are high for the Bank of England to raise its benchmark interest rate to 4.75% from 4.5%, marking the highest rate since 2008.
- The upcoming release of the May Consumer Price Index (CPI) is expected to confirm that inflation in the UK remains the highest among G7 countries, exceeding the central bank's 2% medium-term target by more than four times.
- The DXY, which tracks the US dollar against six major currencies, traded 0.11% lower at 102.375, showing a rebound from its recent one-month low.
- Investors are also focusing on Federal Reserve Chair Jerome Powell's upcoming testimony before Congress, starting on Wednesday, which has contributed to some support for the US dollar.
| SMA (20) | Slightly Rising |
|
|||
| RSI (14) | Slightly Falling |  |
|||
| MACD (12, 26, 9) | Rising |
|
|
Closing statement: GBP/USD experienced a slight decline, but it remains near its 14-month highs as traders eagerly await the Bank of England's interest rate decision. With inflationary concerns in the UK and the impact of Jerome Powell's testimony on the US dollar, market participants are closely monitoring these factors for potential shifts in the currency pair.
GOLD
- Gold prices showed little movement on Tuesday as investors awaited further signals on U.S. monetary policy, while copper prices experienced a slight decline following China's reduction of its lending benchmark for the first time in 10 months.
- The U.S. Federal Reserve recently paused its year-long rate-hiking cycle to assess its impact on inflation and the economic outlook, but it also indicated the possibility of future rate increases.
- Market participants are closely watching Federal Reserve Chair Jerome Powell's testimony to the House Financial Service Committee on Wednesday and the Senate Banking Committee on Thursday, seeking insights into U.S. monetary policy. There is caution surrounding the potential indication of a rate increase in July.
- Uncertainty regarding rising interest rates, along with mixed signals regarding a potential recession this year, has kept gold trading within a narrow range over the past month.
- Investors are closely monitoring these developments for potential shifts in gold prices as they seek clarity on monetary policy and evaluate market conditions.
Closing statement: Gold prices remained relatively stable as market participants awaited further guidance on U.S. monetary policy and monitored developments in China's lending benchmark. The upcoming testimony by Federal Reserve Chair Jerome Powell will likely provide valuable insights into future rate decisions. Amidst the uncertainty surrounding interest rates and economic conditions, gold has been trading within a tight range.
CRUDE OIL
- Crude oil prices experienced a decline in Asian trade on Tuesday as investors assessed the impact of another interest rate cut in China and grew more cautious about the country's economic outlook for this year. Concerns over U.S. monetary policy also persisted.
- China implemented a widely anticipated 10-basis-point reduction in its benchmark loan prime rate (LPR) across the board, as it grapples with the challenge of reviving a slowing economic rebound.
- Despite China's robust pace of oil imports and refining activities, market apprehension lingers due to the possibility of increased inventory levels and weakened fuel demand amid deteriorating economic growth, potentially dampening China's future appetite for crude imports.
- Anticipated tightening of U.S. supply in the near term is driven by the expected rise in fuel demand and the ongoing trend of U.S. energy companies reducing operational oil rigs for the seventh consecutive month.
- Investors closely monitor these factors as they navigate the dynamics of crude oil markets, taking into account China's economic developments, U.S. supply trends, and the evolving global energy landscape.
| SMA (20) | Slightly Falling | |
|
| RSI (14) | Neutral | ||
| MACD (12, 26, 9) | Slightly Rising |
|
Closing statement: Crude oil prices faced downward pressure as investors weighed the implications of an interest rate cut in China and expressed concerns about the country's economic outlook. The impact on China's crude oil imports and demand, along with expectations of tightening U.S. supply, are key considerations for market participants.
DAX
- German stocks, including the DAX index, experienced a decline on Tuesday, with Lanxess, a speciality chemicals maker, witnessing a sharp drop in its forecast. The market sentiment remained subdued despite a modest interest rate cut by China.
- The DAX index in Germany fell by 0.5% in morning trading, moving further away from the record high it reached on Friday. The broader STOXX 600 index, encompassing European stocks, also declined by 0.4%.
- Remarkably, the DAX 40 achieved a new all-time record high at 16,428 last week, even as the European Central Bank (ECB) continued its consecutive rate hikes, reaching 3.50% and maintaining a hawkish stance.
- The current week commences with a potential retracement towards the one-month uptrend line at 16,169, and there is the possibility of revisiting last Thursday's low at 16,160.
- Investors closely monitor the performance of the DAX 40, considering factors such as company forecasts, global market sentiment, and the potential impact of central bank policies on stock performance.
| SMA (20) | Slightly Rising |
| |
| RSI (14) | Falling | |
|
| MACD (12, 26, 9) | Slightly Falling | |
Closing statement: German stocks, led by the DAX index, encountered a decline as Lanxess revised its forecast and China's interest rate cut failed to uplift investor sentiment. The DAX 40, despite achieving a record high recently, faces potential retracement levels in the near term.