The Morning Update

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The USD, equities and Treasury yields are higher while oil hedges lower as we start the day. US Retail sales figure and Industrial production are set to be released later today. Speeches from 6 Fed officials are scheduled and may provide some insights on the Fed’s next move and timing. Fed has signaled 1 rate cut before year end while the market have priced in 2.

In other news.  Putin promised to build trade and security systems with North Korea that are not controlled by the West. A fleet of Russian warships has left the port of Havana after a five-day visit to Cuba, following planned military drills. South Korea's military fired warning shots after North Korean soldiers crossed the Military Demarcation Line in the border area between the two Koreas. In a widely expected move, Netanyahu has dissolved the six-member war cabinet, following the departure from government of centrist former general Gantz.

In currency news. BOJ chief Ueda hints at a chance of July rate hike. The AUD barely budged after the RBA warned there were still reasons to be vigilant against inflation. The CNY hovered near a seven-month low against the USD as stronger guidance from the central bank offset mixed economic data. South African rand extends gains after unity government confirmed. The USD is flat against the THB (-.03%), MYR (0.11%) and the INR (0.10%). The AUD is flat this morning while the NZD has lost (046%) against the Greenback. The USD is also losing some ground against the trading currencies losing 0.73% against the ZAR as 0.26% against the MXN.

In commodity markets. Oil prices were largely stable on Tuesday, as traders awaited signs of a hoped-for summer demand boost to prop up prices even as strong supply threatens to blunt gains. A drone attack that set on fire oil storage sites in Russia's southern Rostov region overnight Gold prices are flat as market participants awaits US data and comments from Fed reserve officials while Silver is off 0.6%. Copper dropped 1% to a 2-month low. In the agricultural world, Wheat is down 0.5%, while Soybean rallied 1.1%.

Current level USD Index               105.467           Up 0.14%

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The USD/CAD remains above 1.3700 at the start of the day as it awaits US economic data and comments from Fed officials throughout the day. 

Current level USD/CAD               1.3746            Up 0.18%

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The EUR/CAD has giving up most of its gain after reaching a 2024 high earlier this month. However, the market seems to have found some support around these levels.  

Current level EUR/CAD                1.4732           Up 0.02%

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EUR/USD struggles to extend recovery above 1.0740 European session as it faces pressure from the political turmoil in France and general overall strength of the USD.

Current level EUR/USD                1.0715           Down 0.18%

After reaching a22-month high last week GBP/EUR has lost part of their gains. ECB's soothing talking points are helping while next week’s BoE rate decisions remain the focus of market participants. No rate change is expected.

Current level GBP/EUR     1.1832 (0.8447)        Flat

The GBP/USD struggles as market awaits UK CPI figures and next week’S BoE interest rate decision.

Current level GBP/USD                1.2680           Down 0.19%

Other ccy levels vs C$. GBPCAD 1.7435  AUDCAD.9100  CADCHF.6459 CADJPY 114.85  CADTHB 26.79  CADCNY 5.2772 CADNOK 7.699 CADSEK 7.6292 CADDKK 5.0620  CADZAR 13.1813

Other ccy levels vs USD. JPY 158.10  CHF.8879 AUD.6617 NZD .6102  CNY 7.2561  MXN 18.4630  INR 83.4205 PLN 4.0588 CZK 23.101 ZAR 18.4680  ILS 3.7087  AED 3.6724 KWD 0.30668

Other Major X levels. EURCHF.9516  EURJPY 169.47 EURSEK 11.2436 EURNOK 11.4453 GBPCHF 1.1263  EURAUD 1.6194 GBPAUD 1.9165 AUDCHF.5877  AUDJPY 104.55  CHFJPY 177.79

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