EUR/USD
EUR/USD stays under modest bearish pressure and declined toward 1.0850 in the early European session on Tuesday, pressured by the renewed USD strength. ZEW sentiment survey will be featured in the European economic docket ahead of housing data from the US.
GBP/USD
The GBP/USD pair remains under some selling pressure during the early Asian session on Tuesday. The uptick in the US Dollar (USD) above 103.50 and higher US yields provide some support to the major pair. Markets turn cautious ahead of the central bank meetings, including the Federal Reserve (Fed) and Bank of England (BoE) interest rate decisions. At press time, GBP/USD is trading at 1.2726, down 0.02% on the day.
USD/JPY
USD/JPY preserves its bullish momentum after breaking above 150.00 with the ‘sell the fact’ reaction to the Bank of Japan’s decision to end negative interest rates. In the post-meeting press conference, Governor Ueda said they will consider options for easing broadly, including ones used in the past if needed.
AUD/USD
The Australian Dollar begins the Asian session, clocking minuscule losses of 0.02% against the US Dollar as market participants prepare for the Reserve Bank of Australia (RBA) monetary policy decision. On Monday, the AUD/USD was virtually flat, though at the time of writing, it trades at 0.6559, down 0.01%.
NZD/USD
The NZD/USD pair remains under some selling pressure during the early European session on Tuesday. The uptick in the US Dollar Index (DXY) to two-week highs above 103.80 weighs on the NZD/USD pair. Markets are in a cautious mood ahead of the Federal Reserve’s (Fed) monetary policy meeting on Wednesday. The pair currently trades around 0.6053, down 0.53% on the day.
USD/CAD
USD/CAD continues its upward trend for the fourth consecutive session, trading near the significant level of 1.3540. The US Dollar (USD) advances, propelled by higher US Treasury yields. Bond markets are facing selling pressure as additional signs of resilience in the United States (US) economy emerge, prompting traders to revise their expectations for fewer interest rate cuts this year.
USD/CHF
The USD/CHF pair loses traction amid the consolidation of the US Dollar (USD) during the early European session on Tuesday. Traders prefer to wait on the sidelines ahead of the US Federal Open Market Committee’s (FOMC) monetary policy meeting on Wednesday, with no change in rate expected. USD/CHF currently trades near 0.8535, losing 0.04% on the day.
CRUDE OIL
Oil prices dipped on Tuesday due in part to the prospect of rising supply from Russia, slower-than-expected downstream demand in sectors such as jet fuel, and cautious trading ahead of the Fed’s decision on U.S. interest rates.
Gold price struggles to capitalize on the previous day’s bounce from the $2,145 region and oscillates in a range during the Asian session on Tuesday. Hawkish Fed expectations, elevated US bond yields and a bullish USD cap the upside.
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