Posted at 20 May 2025 / Categories Market Roundups
Market Roundup
• China PBoC Loan Prime Rate (May) 3.50%, 3.50% forecast,3.60% previous
• China PBoC Loan Prime Rate 3.00%, 3.00% forecast,3.10% previous
•Australia RBA Interest Rate Decision (May) 3.85%,3.85% forecast,4.10% previous
•German PPI (MoM) (Apr) -0.6%, -0.3% forecast, -0.7% previous
•German PPI (YoY) (Apr) -0.9%, -0.6% forecast, -0.2% previous
Looking Ahead Economic Data(GMT)
•08:00 EU Current Account (Mar) 35.9B forecast, 3.3B previous
•08:00 EU Current Account n.s.a. (Mar) 33.1B previous
•08:00 EU Belgium Consumer Confidence (May) -14 previous
•08:00 EU Construction Output (MoM) (Mar) -0.48% previous
•10:00 Spanish Consumer Confidence (Apr) 79.6 previous
•10:00 Portugal Current Account (Mar) 0.469B previous
Looking Ahead Events And Other Releases(GMT)
• 11:50 German Buba Vice President Buch Speaks
Currency Forecast
EUR/USD: The euro strengthened on Tuesday as cautious signals from the Federal Reserve and the prospect of a widening fiscal deficit driven by a pending U.S. spending bill—kept investor sentiment subdued. Atlanta Fed President Raphael Bostic told media on Monday that the Federal Reserve may only cut interest rates by 25 basis points for the rest of the year, citing inflation concerns fueled by rising tariffs. Meanwhile, former President Donald Trump is set to re-enter the spotlight as Congress debates his proposed tax bill on Tuesday. The vote follows Moody’s decision to downgrade the U.S. government’s credit rating, pointing to alarm over the nation’s soaring $36.2 trillion debt. Nonpartisan estimates suggest Trump’s bill could add $3 to $5 trillion more to the deficit. Mounting fiscal pressures, trade tensions, and eroding confidence in U.S. economic dominance have rattled markets. Immediate resistance can be seen at 1.1370(23.6%fib), an upside break can trigger rise towards 1.1462(Higher BB).On the downside, immediate support is seen at 1.1187(38.2%fib), a break below could take the pair towards 1.1103(Lower BB).
GBP/USD: The British pound rose on Tuesday after the United Kingdom and the European Union finalized a landmark agreement, marking the most significant reset in their relationship since Brexit. Announced on Monday, the deal represents a major shift in trade and defense cooperation, nearly nine years after the UK voted to leave the EU. Key elements of the agreement include a new security and defense partnership, reduced barriers for British food exporters and travelers, and a revised fishing arrangement—long a point of contention. This renewed alignment comes in response to the broader geopolitical upheaval triggered by former U.S. President Donald Trump's disruption of the post-war global order, which has driven both London and Brussels to reevaluate their strategic priorities and move beyond the bitterness of Brexit . Immediate resistance can be seen at 1.3405(23.6%fib), an upside break can trigger rise towards 1.3449(Higher BB).On the downside, immediate support is seen at 1.3217(38.2%fib), a break below could take the pair towards 1.3164(Lower BB).
AUD/USD: The Australian dollar steadied on Tuesday after Australia's central bank cut its main cash rate as widely anticipated by markets. Australia’s central bank cut its cash rate by 25 bps to 3.85%, a two-year low, citing a weaker global outlook and easing inflation, while staying cautious on further cuts.The Reserve Bank of Australia, after a two-day meeting, said inflation risks have eased and global factors may slow the domestic economy.The RBA noted inflation would fall and unemployment rise due to global trade tensions, even with rate cuts in line with market expectations. At GMT 05:00, the Australia dollar was down 0.33% to 0.6436 against the US dollar.. Immediate resistance can be seen at 0.6491(38.2%fib), an upside break can trigger rise towards 0.6513(Higher BB).On the downside, immediate support is seen at 0.6385(50%fib), a break below could take the pair towards 0.6319(Lower BB).
USD/JPY: The U.S. dollar slipped to hit two week low against the yen on Tuesday as Japanese yen firmed on growing bets that the Bank of Japan (BoJ) will raise interest rates again this year.Bank of Japan Deputy Governor Shinichi Uchida stated that the central bank may continue raising interest rates if the Japanese economy shows signs of recovery from the anticipated impact of higher U.S. tariffs, though he cautioned that the overall economic outlook remains highly uncertain.After exiting its decade-long ultra-loose monetary stimulus program last year, the Bank of Japan took a significant step by raising its benchmark interest rate to 0.5% in January. This move signals a shift toward a more normalized monetary policy stance as the central bank responds to improving economic conditions .Immediate resistance can be seen at 145.63 (Daily high)an upside break can trigger rise towards 146.48(38.2%fib) .On the downside, immediate support is seen at 144.22(23.6%fib)a break below could take the pair towards 142.42(May 7th low)
Equities Recap
Asian stocks inched hiigher on Tuesday as investors assessed the mounting U.S. debt burden and awaited developments on key trade agreements.
China A 50 was up 0.56% , South Korea's KOSPI was down 0.06%,Hang Seng was up by 1.47%.
Commodities Recap
Gold prices slipped on Tuesday as a stronger U.S. dollar and renewed hopes for a Russia-Ukraine ceasefire reduced demand for safe-haven assets.
Spot gold was down 0.5% at $3,214.17 an ounce as of 0627 GMT. U.S. gold futures slipped 0.6% to $3,215.60
Oil prices fell on Tuesday as traders balanced potential supply shifts from Russia-Ukraine peace efforts and U.S.-Iran talks against strong near-term demand in Asia and lingering concerns over China’s economic outlook.
Brent futures for July dipped 19 cents to $65.35 a barrel by 0625 GMT.June U.S. West Texas Intermediate crude futures , which expire on Tuesday, gained 3 cents to $62.72, while the more active July contract slipped 17 cents to $61.97 a barrel.