DATA FLOWS PICK UP ON TUESDAY
After a slow start to the week, investors can expect a steady increase in economic reporting on Tuesday. US and European data releases will make headlines ahead of what’s expected to be a highly active second half of the week.
The first major report is scheduled for 06:00 GMT when the Swiss government unveils its latest trade figures. Switzerland’s trade surplus is forecast to rise sharply for the month of April, highlighting improved trade flows in the European region.
About 45 minutes later, France’s INSEE agency will report on consumer confidence. The May index is forecast to weaken slightly from the previous month.
Shifting gears to Italy, reports on consumer and business confidence will make their way to investors at 08:00 GMT. The consumer confidence gauge is projected to fall slightly for May while business confidence likely rose.
On the monetary policy front, a pair of European Central Bank (ECB) officials will deliver speeches on Tuesday. Yves Mersch is scheduled to speak at 10:30 GMT. Later in the day, Sabine Lautenschlager will also deliver remarks.
Shifting gears to the United States, S&P and Case-Shiller will report on the monthly home price indices, which provide a snapshot of residential property values across major cities. The headline indicator is expected to show year-over-year growth of 6.4% for March after home values rose 6.8% the month before.
At 14:30 GMT, the Federal Reserve Bank of Dallas will release its manufacturing business index for the month of May. The indicator is expected to print 23.3, up from 21.8 the previous month.
The Reserve Bank of New Zealand’s Financial Stability report will be released on Tuesday for traders in North America. In New Zealand time, the report falls on a Wednesday.
The euro’s recovery attempt came up short on Monday, as prices crashed back down to new yearly lows. EUR/USD touched an intraday high of 1.1729 before plunging more than 100 pips all the way down to 1.1612. At the time of writing, the pair was trading at 1.1621. Immediate support is now located at 1.1600. Resistance is seen above 1.1700.
Cable also succumbed to bearish pressure at the start of the week, as prices failed to maintain intraday highs. GBP/USD was last seen trading in the low 1.3300 region, where it faces immediate support at 1.3280. Below that level, the next target is 1.3245. On the opposite side of the spectrum, resistance is likely found at 1.3340, followed by 1.3385.
The New Zealand dollar edged lower against its US counterpart Tuesday, as prices fell 0.2% to 0.6929. Prices had reached an intraday high of 0.6960. NZD/USD faces an immediate hurdle at 0.6970. On the support side, the first target is 0.6939.