The main news and perhaps the most unsurprising result came from the House of Representatives, which voted 314-117 to send the debt ceiling bill to a rubber-stamped Senate approval to little market fanfare as judged muted reaction across US futures.
But investors could be treading cautiously ahead of Friday's NFP, which should take on increased importance as that will be the last significant data point that Fed officials will have a chance to comment on before their June 14th rate decision.
In China, the headline Caixin manufacturing PMI rose to 50.9 in May from 49.5 in April, suggesting improved manufacturing activity due to increased demand. But looking at the bellwether Yuan's plight, it will take more than a slightly above contraction PMI reading to mend China's leaky ship.
Oil market participants expect the nine major OPEC+ producers, which announced voluntary production cuts in April, to keep production unchanged. And while they will most certainly ramp up the " Ouching" rhetoric, one possible outcome is that OPEC could broaden the cuts to smaller producers. However, in the absence of Russian compliance, whether this will stem the pessimistic tide is debatable.
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EUR/USD stays weak near 1.0650 ahead of Eurozone PMI data
EUR/USD remains on the back foot near 1.0650 in European trading on Tuesday. Resurgent US Dollar demand amid a cautious risk tone weighs on the pair. Investors stay wary ahead of the preliminary Eurozone and US business PMI data.
GBP/USD eases below 1.2350, UK PMIs eyed
GBP/USD is dropping below 1.2350 in the European session, as the US Dollar sees fresh buying interest on tepid risk sentiment. The further downside in the pair could remain capped, as traders await the UK PMI reports for fresh trading impetus.
Gold could see a rebound before resuming the correction
Gold price sees a fresh leg down in Asia on Tuesday even as risk flows dissipate. Receding fears over Middle East escalation offset subdued US Dollar and Treasury bond yields. Gold remains heavily oversold on the 4H chart, rebound appears in the offing.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin price.
Focus on April PMIs today
In the euro area, focus today will be on the euro area PMIs for April. The previous months' PMIs have shown a return of the two-speed economy with the service sector in expansionary territory and manufacturing sector stuck in contraction.