After a quiet Monday, Tuesday is likely to bring further moves in the markets. During the Asian session, Japan will report the unemployment rate for April, while New Zealand and Australia will release building permit data for April. In Europe, Spain will publish preliminary inflation figures. In the United States, attention is focused on Congress after the debt limit agreement. Data on consumer confidence and housing will be released on Tuesday. The NFP report will be published on Friday.
Here’s what you need to know on Tuesday, May 30:
There was more action over the weekend than on Monday following an agreement in principle between US President Biden and House Speaker Kevin McCarthy to raise the debt limit for two years. Now the House and Senate must approve the deal, with a June 5 deadline looming. On that day, according to Treasury Secretary Janet Yellen, the United States could run out of liquidity. The vote in Congress is expected to take place on Wednesday.
The deal in the US favored market sentiment on Monday, although price developments were subdued, with many European markets and Wall Street closed. The US dollar weakened slightly, and the DXY managed to close with modest gains, helped by the fall in EUR/USD.
The euro lagged on Monday, with EUR/USD retreating from 1.0740 towards 1.0700, while EUR/GBP posted the lowest daily close since November below 0.8670. GBP/USD it ended flat, hovering around 1.2350. On Tuesday, Spain will publish the preliminary reading of the consumer price index (CPI) for April.
USD/CHF fell to the 0.9030 zone and then recovered towards 0.9050. EUR/CHF closed at 0.9685, the lowest level since October 2022. Switzerland will release first-quarter GDP data on Tuesday.
USD/JPY reached fresh monthly highs at 140.90 and lost momentum, approaching 140.00. The Unemployment Rate for April will be released in Japan on Tuesday.
The AUD/USD pair rose for the second day in a row, helped by improving market sentiment. The rally found resistance at 0.6550. Building permits for April will be released on Tuesday.
NZD/USD remained under pressure and was seen hovering around 0.6050. The pair is consolidating recent losses and is trading 225 points below the level of a week ago. Building permit data will also be published in New Zealand.
The USD/CAD pair fell below 1.3600, with the Loonie favored by better market sentiment and also by stronger crude oil prices.
Gold moved sideways around $1,940, while silver gave back a small fraction of Friday’s gains, falling to $23.15. Cryptocurrencies rose, with BTC/USD advancing to $27,650 and Ethereum rising 2.10% to $1,893.
The Turkish lira closed at record lows. The USD/TRY pair rose above 20.00 for the first time, following Recep Tayyip Erdogan’s victory in Sunday’s presidential runoff in Turkey.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
