Commerzbank’s Michael Pfister expects the Hungarian central bank to resume interest rate cuts, with consensus looking for a 25 basis point move. A strong Hungarian Forint and lower-than-expected inflation provide room for easing, leaving real rates high.
EUR/JPY extends its losses for the second successive day, trading around 184.30 during the European hours on Tuesday. The currency cross depreciates following the release of HCOB Purchasing Managers Index (PMI) data from Germany. Attention is shifted toward Eurozone PMI data due later in the day.
Danske Research Team reports that global equities advanced, but underlying performance was highly dispersed, with US consumer and communication services names under pressure while most S&P 500 sectors and small caps gained.
German preliminary HCOB Manufacturing PMI arrives lower at 50.0 in June, as expected, from 50.1 in May. The 50.0 figure is a boundary line that separates expansion from contraction.
The Bank of Japan (BoJ) said on Tuesday that Japan's core consumer inflation rate excluding one-off factors, as measured by the Japanese central bank's new gauge, climbed 2.7% in May. This figure exceeded the BoJ’s 2% target and eased from 2.8% in April.
USD/IDR extends its gains for the second consecutive day, trading around 17,900 during the Asian hours on Tuesday. Meanwhile, severe economic headwinds are building for Southeast Asia's largest economy.
Most Asian equity markets fell on Tuesday, tracking the overnight slump in US technology stocks, prompting investors to take profits following a powerful artificial intelligence-driven rally.
AUD/USD extends its losses for the sixth consecutive day, trading around 0.6980 during the Asian hours on Tuesday. The pair remains subdued despite the release of improved preliminary Australian S&P Global Purchasing Managers Index (PMI) data.
Japan’s Chief Cabinet Secretary Minoru Kihara said that he will take appropriate action against the foreign exchang (FX) moves if needed, Reuters reported on Tuesday.
Japan’s Finance Minister Satsuki Katayama said that she held virtual talks with US Treasury Secretary Scott Bessent on Monday, discussing global financial markets and Iran conflict effects.
US Vice President (VP) JD Vance said that talks between the United States (US) and Iran have made “great progress” despite “threatening” and “whining,” CNBC reported on Tuesday.
The preliminary reading of Australia's S&P Global Manufacturing Purchasing Managers Index (PMI) rose to 51.2 in June versus 50.7 prior, the latest data published by S&P Global showed on Tuesday.
The 60-day framework that Trump and Iran's president signed at Versailles on June 17 was meant to wind the war down and reopen the Strait of Hormuz. A week on, the two capitals cannot agree on what the document actually says.