EUR/USD
EUR/USD is extending its mild recovery toward 1.0750 early Europe on Tuesday. Risk flows remain and exert additional downside pressure on the US Dollar while Euro traders reposition ahead of Sunday’s French election. Mid-tier US data and Fedspeak stay in focus.
GBP/USD
GBP/USD is recovering to test 1.2700 in the European morning on Tuesday. Extended US Dollar weakness due to improved market mood, aids the pair’s latest uptick. Traders look to the US sentiment data and Fed speeches for further impetus, as the UK calendar remains data-quiet.
USD/JPY
The Japanese Yen (JPY) extends its gains for the second consecutive session on Tuesday. The USD/JPY pair remains within touching distance of the 160.00 level that recently pushed Japanese authorities to spend billions of dollars in Yen-buying intervention, per Reuters.
AUD/USD
The Australian Dollar (AUD) inches higher due to an improvement in Australia’s Westpac Consumer Confidence Index, released on Tuesday. Additionally, the AUD/USD pair receives support from the hawkish stance of the Reserve Bank of Australia (RBA). However, investors are likely to be cautious ahead of this week’s Australian inflation data.
NZD/USD
The NZD/USD pair trades on a softer note near 0.6120 despite the weaker US Dollar (USD) during the early Asian trading hours on Tuesday. In the absence of top-tier economic data released from New Zealand on Tuesday, speeches by FOMC members could influence USD demand ahead of the key US economic data, which are due later this week. The revision of US Gross Domestic Product (GDP) for the first quarter (Q1) is due on Thursday, and the Personal Consumption Expenditure (PCE) Price Index will be published on Friday.
USD/CAD
The USD/CAD pair remains on the defensive around 1.3655 during the early Asian session on Tuesday. The USD Index (DXY) retreats from nearly two-month tops to 105.50, exerting some selling pressure on the pair. Investors will focus on the Canadian Consumer Price Index (CPI) inflation report, which is forecast to cool slightly for the year through May.
USD/CHF
USD/CHF retraces its gains from the last three sessions, trading around 0.8930 during the early European session on Tuesday. The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, edges lower to near 105.70. This downward correction could be attributed to the decline in the 2-year and 10-year yields on US Treasury bonds standing at 4.73% and 4.25%, respectively, at the time of writing.
CRUDE OIL
Oil prices were little changed on Tuesday after rising in the previous session as investors were cautious ahead of U.S. consumer price data even as expected summer demand increases supported the market.
Gold price is reversing a part of Monday’s rebound, as sellers fight back early Tuesday amid a risk-on market profile. The US Dollar nurses losses alongside the US Treasury bond yields, undermined by the dovish commentaries from Federal Reserve policymakers.
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