Stay informed with CA Markets’ daily market update, providing the latest trends and insights in Forex and CFD trading. Our comprehensive analysis and expert advice are designed to keep you informed and ahead in CFD trading. Whether you’re navigating currency pairs or exploring diverse asset classes, our updates offer valuable perspectives to optimize your trading strategies. Trust CA Markets to deliver timely market analysis that empowers your decisions and enhances your trading experience.
Market Recap
Wall Street Performance: Wall Street finished marginally higher overnight, with the Nasdaq leading the way, up 0.30%, despite weak performances from European and Asian markets. Key commodities like oil saw modest gains, while wheat and sugar both traded over 3.5% higher.
Forex Highlights:
- AUD/USD: The pair remained range-bound, trading between .6640 and .66725 throughout the day.
- USD/JPY: Continuing to trade above 160, we’re watching for the next catalyst that could push this pair higher.
As the London session progressed, AUD/USD softened to 0.6651, while NZD/USD climbed to 0.6104. EUR/USD and GBP/USD were slightly higher at 1.0704 and 1.2654, respectively, with USD/JPY hovering around 160.50.
US Economic Data:
- Weekly Jobless Claims: Initial claims came in at 233k, close to the forecast of 235k, with continuing claims at 1.839 million, slightly above the forecast of 1.828 million.
- Durable Goods Orders for May: Increased by 0.1%, beating expectations of a 0.5% decline, though there were significant negative revisions. The core measure fell by 0.1% against an expected 0.2% gain.
- Q1 GDP: Revised up to 1.4%, as expected, with Personal Consumption revised down to 1.5% from 2.0% and Core PCE revised up to 3.7% from 3.6%.
In early New York trading, the USD was modestly weaker:
- EUR/USD and GBP/USD: Rose to new highs of 1.0726 and 1.2670, respectively.
- NZD/USD: Moved up towards 0.6110.
- USD/JPY: Fell to lows under 160.30.
- USD/CAD: Dipped to 1.3676.
The local unit rose slightly but generally held mid-range on the day, underperforming other majors.
Day Ahead
China: The NBS manufacturing PMI for May will be released. Markets expect it to remain steady at 50.3 (April: 50.4). High-frequency data suggests robust overall production in May, supported by strong export growth and the new energy sector.
Eurozone: May CPI will be closely watched ahead of the ECB meeting on June 6. Although core prices are unlikely to show further progress in disinflation, this is unlikely to deter the ECB from cutting rates next month. Upside surprises, particularly in services price inflation, could influence market expectations for additional cuts later in the year.
Canada: Q1 real GDP data will be released today, with consensus expecting an improvement to an annualized rate of +1.8%, marking the strongest growth rate since Q1 2023. The BoC policy outlook could be impacted by underlying details, including growth in final domestic demand and the preliminary estimate for real GDP in April.
US: Core PCE for April could shape Fed policy expectations. Analysis suggests a reading of about +0.25% MoM, marking a deceleration from March. Personal income and outlays data for April will help gauge consumer health. Recent data suggests softness in consumer confidence, with weak retail sales for the month. Consensus expects a flat reading for real personal consumption, which may impact Q2 real GDP growth estimates.
Economic Data to Watch
- JP: May Jobless Rate
- JP: Jun Tokyo CPI y/y
- JP: May Industrial Production y/y
- AU: Apr Private Sector Credit y/y
- CN: May Composite PMI
- CN: May Manufacturing PMI
- UK: Apr Housing Credit y/y
- EU: May CPI Core y/y
- EU: May CPI m/m
- CA: Mar GDP y/y
- US: Apr PCE Deflation y/y
- US: Apr Real Personal Spending
- US: Fed’s Bostic Gives Commencement Speech
Mid-Market Rates
| Currency Pair | Mid-market Rate |
|---|---|
| AUD/USD | 0.6650 |
| AUD/NZD | 1.0928 |
| AUD/JPY | 106.87 |
| AUD/CNY | 4.8571 |
| AUD/EUR | 0.6209 |
| AUD/GBP | 0.5258 |
Stay tuned for more updates, and feel free to reach out for any trading assistance or clarifications. Happy trading!
Disclaimer:
The information provided in this daily market update is for informational purposes only and should not be considered as financial advice. Trading Forex and CFDs involves significant risk of loss and may not be suitable for all investors. Past performance is not indicative of future results. CA Markets does not guarantee the accuracy or completeness of the information provided, and we recommend consulting with a qualified financial advisor before making any trading decisions. Users are solely responsible for their own trading activities and decisions.
