Posted at 25 June 2025 / Categories Market Roundups
Market Roundup
•US Building Permits (MoM) (May) -2.0% , -2.0% forecast, -4.0% previous
•US Building Permits (May) 1.394M,1.393M forecast, 1.422M previous
•US New Home Sales (MoM) (May) -13.7%, 9.6% previous
•US New Home Sales (May) 623K, 694K forecast, 722K previous
•US Crude Oil Inventories -5.836M, -1.200M forecast, -11.473M previous
•US Gasoline Inventories -2.075M, -0.500M forecast, 0.209M previous
Looking Ahead Economic Data(GMT)
•23:50 Japan Foreign Bonds Buying 1,571.3B previous
•23:50 Japan Foreign Investments in Japanese Stocks 473.4B previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened on Wednesday as dollar weakened following soft home sales data and mixed signals from Federal Reserve Chair Jerome Powell regarding the long-term inflationary effects of tariffs Powell, speaking before a U.S. Senate panel, reiterated that tariffs by the Trump administration could result in a one-time increase in prices but cautioned that the risk of more persistent inflation warranted a prudent approach to future rate cuts. Meanwhile, Federal Reserve Bank of Boston President Susan Collins indicated she is inclined toward a rate reduction later this year U.S. new home sales dropped 13.7% in May to a seven-month low of 623,000 units, the sharpest decline since June 2022, as high mortgage rates and economic uncertainty dampened demand. April’s figures were revised down to 722,000, while unsold home inventory rose to its highest level since late 2007.Immediate resistance can be seen at 1.1632(23.6%fib), an upside break can trigger rise towards 1.1683(Higher BB).On the downside, immediate support is seen at 1.1471(20 SMA), a break below could take the pair towards 1.1431(38.2%fib).
GBP/USD: The British pound held firm against the U.S. dollar on Wednesday, underpinned by improved risk appetite following the fragile ceasefire between Israel and Iran. The truce, brokered by U.S. President Donald Trump, offered markets a temporary sense of calm, although underlying tensions remained as Israel cautioned it may retaliate against recent Iranian missile attacks. Britain’s labour market continues to show signs of cooling, according to surveys released Wednesday, with pay growth lagging inflation and job vacancies—particularly at the graduate level declining. Data from Brightmine showed that most private sector pay settlements held at 3% in the three months to May, below the latest inflation rate of 3.4%, while nearly 15% of firms offered even lower raises of 2.5%.Meanwhile, Bank of England Governor Andrew Bailey noted further signs of a softening UK labour market and reiterated expectations of continued rate declines. Money markets are now pricing in an 80% probability of a BoE rate cut in August. Immediate resistance can be seen at 1.3641(23.6%fib), an upside break can trigger rise towards 1.3674(Higher BB).On the downside, immediate support is seen at 1.3523(SMA 20), a break below could take the pair towards 1.3443(38.2%fib).
USD/CAD: The Canadian dollar weakened against the U.S. dollar on Wednesday as markets weighed Canada’s pledge to boost military spending and digested domestic data that did little to strengthen the case for an interest rate cut next month. Prime Minister Mark Carney announced that Canada will meet NATO’s new defense investment target, committing to spend 5% of its GDP on defense by 2035.Meanwhile, oil prices a key driver of the Canadian economy rebounded modestly as investors evaluated the stability of the fragile ceasefire between Israel and Iran. However, expectations for the Bank of Canada to hold rates steady at 2.75% at its July 30 meeting rose, with markets now assigning roughly a two-in-three chance of no change, following data showing only a slight easing in core inflation for May. The loonie was trading nearly unchanged at 1.3730 per U.S. dollar. Immediate resistance can be seen at 1.3778(Higher BB), an upside break can trigger rise towards 1.3810 (50% fib).On the downside, immediate support is seen at 1.3706(38.2% fib), a break below could take the pair towards 1.3595Lower BB).
USD/JPY: The U.S. dollar retreated slightly on Wednesday as investors digested soft home sales data and mixed signals from Federal Reserve Chair Jerome Powell. U.S. new home sales dropped sharply in May, marking the biggest decline in nearly three years, as high mortgage rates and economic uncertainty dampened demand. The report from the Commerce Department also showed unsold home inventory rising to its highest level since late 2007, signaling that housing may weigh on Q2 GDP after a neutral impact in Q1. Federal Reserve Chair Jerome Powell in his second day of congressional testimony reiterated that the central bank doesn't need to be in a rush to cut interest rates due to uncertainty over the impact of the still-unresolved tariff debate.Traders are also awaiting U.S. GDP and jobs data due on Thursday, and the Personal Consumption Expenditures (PCE) data on Friday to gauge the Fed's future policy path. Immediate resistance can be seen at 145.18 (38.2%fib)an upside break can trigger rise towards 146.40 (Higher BB) .On the downside, immediate support is seen at 142.81(Lower BB)a break below could take the pair towards 140.79(23.6%fib).
Equities Recap
European stocks fell on Wednesday as investors grew cautious over the fragile Israel-Iran ceasefire and shifted focus to the approaching U.S. tariff pause deadline.
UK's benchmark FTSE 100 closed down by 0.46 percent, Germany's Dax ended down by 0.57 percent, France’s CAC finished the day down by 0.76 percent.
U.S. stocks paused on Wednesday, ending a two-day rally as investors assessed the fragile Israel-Iran ceasefire and closely followed the second day of Federal Reserve Chair Jerome Powell’s congressional testimony.
Dow Jones closed down by 0.25% percent, S&P 500 closed flat by 0.00% percent, Nasdaq settled up by 0.31% percent.
Commodities Recap
Gold prices held steady on Wednesday as investors stayed cautious ahead of key U.S. economic releases, while easing geopolitical tensions from the Israel-Iran ceasefire dampened demand for safe-haven assets.
Spot gold was up 0.1% at $3,327.91 per ounce at 0158 p.m. EDT (1758 GMT) after prices hit their lowest in over two weeks in the previous session.
Oil prices climbed nearly 1% on Wednesday, rebounding from earlier losses this week, supported by signs of solid U.S. demand and cautious optimism over the stability of the Israel-Iran ceasefire.
Brent crude futures rose 54 cents, or 0.8%, to settle at $67.68 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 55 cents, or 0.9%, to close at $64.92, recovering a portion of the 13% losses suffered earlier in the week.