Tuesday Market Insights: USD Strength and Mixed Commodity Movements

Welcome to Tuesday’s market update. Yesterday, the ISM Services PMI data was released, meeting expectations. Today, Australia’s interest rate decision was announced at 4.35%, matching forecasts and keeping the Australian dollar stable. In the UK, the construction PMI exceeded expectations with a reading of 55.3. Earnings reports were mixed: Caterpillar’s EPS beat projections but revenue fell short, resulting in a 4% pre-market increase. Uber’s EPS missed estimates, but higher-than-expected revenue pushed its pre-market performance up by 5%.

Currently, the US dollar is showing significant strength, with the Swiss franc also performing well. On the other hand, the British pound is the weakest currency today. Indices are experiencing a mixed session; after a challenging day yesterday, a V-shaped recovery has been observed. American futures are up, while European indices display mixed results as they digest yesterday’s reversal.

In the commodities market, precious metals such as gold, palladium, and platinum are on the rise, while silver is declining. Oil is having a negative session, continuing its downward trend despite yesterday’s V-shaped recovery. This sets the stage as we approach the start of the American trading session today.

Source: https://www.axiory.com/analytics/market-news/tuesday-market-insights-usd-strength-and-mixed-com