Posted at 27 May 2025 / Categories Market Roundups
Market Roundup
• Japan Corporate Services Price Index (CSPI) (YoY) 3.1%,3.0% forecast, 3.3% previous
• Chinese Industrial profit YTD (Apr) 1.4%, 0.8% previous
Looking Ahead Economic Data(GMT)
• 09:00 EU Business and Consumer Survey (May) 94.0 forecast, 93.6 previous
• 09:00 EU Business Climate (May) -0.67 previous
• 09:00 EU Consumer Confidence (May) -15.2 forecast, -16.7 previous
• 09:00 EU Consumer Inflation Expectation (May) 29.6 previous
• 09:00 EU Selling Price Expectations (May) 11.0 previous
• 09:00 EU Services Sentiment (May) 0.9, 1.4 previous
• 09:00 EU Industrial Sentiment (May) -11.0 forecast, -11.2 previous
• 09:00 EU Italian 2-Year CTZ Auction 2.000% previous
• 10:00 UK CBI Distributive Trades Survey (May) -18 forecast, -8 previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Forecast
EUR/USD: The euro eased slightly on Tuesday as investors awaited fresh breakthroughs in trade negotiations between Washington and its major trading partners. Trump backed away from his threat to impose 50% tariffs on imports from the European Union next month, restoring a July 9 deadline to allow for talks between Washington and the 27-nation bloc to produce a deal. Attention now turns to debate in the U.S. Senate on Trump's tax-cut bill that is expected to add to the debt pile in the world's largest economy. Markets have been sensitive to Trump's proposal, particularly after Moody's downgrade of the U.S. sovereign credit rating on May 16.The U.S. House of Representatives last week passed a version of Trump's tax-cut bill that is calculated to add about $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade, according to the Congressional Budget Office. Immediate resistance can be seen at 1.1436(Higher BB), an upside break can trigger rise towards 1.1450(Higher BB).On the downside, immediate support is seen at 1.1535(23.6%fib), a break below could take the pair towards 1.1279(May 26th low).
GBP/USD: The British pound edged lower on Tuesday as investors remained cautious amid ongoing uncertainty over U.S. trade policy and awaited new trade developments. Markets in the U.S. were closed on Monday for a holiday, making for thin overnight trading conditions and leaving investors latching on to lingering optimism from Trump's U-turn on his threat to impose 50% tariffs on imports from the EU next month, restoring a July 9 deadline. Investor confidence in U.S. assets has been undermined in recent months in the wake of the U.S. president's erratic global tariff policies .Focus for investors this week will also be on speeches from a slew of Federal Reserve policymakers and Friday's U.S. core PCE price index, for clues on the outlook for U.S. rates. Immediate resistance can be seen at 1.3481(23.6%fib), an upside break can trigger rise towards 1.3516(Higher BB).On the downside, immediate support is seen at 1.3415(Daily low), a break below could take the pair towards 1.3290(38.2%fib).
AUD/USD: The Australian dollar slipped from a six-month high on Tuesday as investors turned their focus to upcoming high-impact economic data and recent trade developments. Markets remained centered on U.S. fiscal issues and shifting tariff policies under the Trump administration. Australian inflation data for April is due Wednesday, with analysts expecting a slight slowdown to 2.3% from 2.4% in March. Attention this week will also be on Friday’s U.S. core PCE price index for indications on U.S. interest rate prospects. A July rate cut by the Reserve Bank of Australia is now priced in at 67%, with a total easing of 80 basis points expected by early next year. At GMT 11:51, the Australia dollar was down 0.37% to 0.6461 against the dollar. Immediate resistance can be seen at 0.6540(Daily high), an upside break can trigger rise towards 0.6580(23.6%fib).On the downside, immediate support is seen at 0.6486(38.2%fib), a break below could take the pair towards 0.6412(50%fib).
USD/JPY: The U.S. dollar gained modestly against the Japanese yen on Tuesday as investors remained cautious amid growing uncertainty surrounding President Trump’s evolving trade policies. Market participants are concerned that unpredictable tariff moves and escalating trade tensions could disrupt global economic growth. Additionally, worries about the worsening fiscal condition of the United States marked by rising budget deficits and mounting national debt added to the cautious sentiment. . On the monetary front, BOJ Governor Kazuo Ueda said the central bank must be vigilant to rising consumer prices in Japan, signaling its readiness to keep hiking rates. Looking ahead, markets will focus on Japan’s upcoming inflation data later this week as investors assess the BoJ’s monetary policy direction. Immediate resistance can be seen at 144.45 (38.2%fib)an upside break can trigger rise towards 145.00(Psychological level) .On the downside, immediate support is seen at 142.97(23.6%fib)a break below could take the pair towards 141.30(Lower BB)
Equities Recap
Asian shares were mixed on Tuesday, while U.S. futures gained after President Trump postponed planned 50% tariffs on EU goods. Meanwhile, the U.S. dollar was on track for a fifth consecutive monthly decline.
Japan's Nikkei 225 was up 0.58% , South Korea's KOSPI was down 0.27 %,Hang Seng was up by 0.47%.
Commodities Recap
Gold prices edged lower on Tuesday as the dollar firmed slightly, while ongoing U.S. fiscal concerns and upcoming key data kept investors wary about the interest rate outlook.
Spot gold was down 0.5% at $3,325.99 an ounce, as of 0537 GMT. Markets in the U.S. and London were closed on Monday for a holiday.
Oil prices were steady on Monday after news that eight OPEC+ members, who had committed to voluntary output cuts, will meet on May 31—one day earlier than scheduled.
Brent crude futures settled down four cents at $64.74 a barrel, while U.S. West Texas Intermediate crude last traded at $61.53 a barrel, unchanged from the prior day's session.