EUR/USD
EUR/USD is holding steady above 1.1150 in the European morning on Tuesday. The US Dollar struggles to extend recovery, supporting the pair amid a cautiously optimistic market mood. The focus shifts to mid-tier US economic data.
GBP/USD
GBP/USD is treading water at around 1.3200 in the European session on Tuesday. Easing concerns over a broader Middle East conflict check the rebound in the safe-haven US Dollar, helping the pair to stay afloat ahead of US sentiment and housing data.
USD/JPY
The Japanese Yen (JPY) continues to lose ground against the US Dollar (USD) for the second consecutive day on Tuesday. However, the downside of the JPY could be restrained due to the hawkish mood surrounding the Bank of Japan (BoJ).
Additionally, the contrasting statements from the BoJ and the Federal Reserve (Fed) regarding their policy outlooks are putting downward pressure on the USD/JPY pair. BoJ Governor Kazuo Ueda stated in Parliament on Friday that the central bank could raise interest rates further if its economic projections are accurate.
AUD/USD
The Australian Dollar (AUD) edges higher against the US Dollar (USD) on Tuesday, holding a position just below the seven-month high of 0.6798 recorded on Monday. However, the downside of the AUD/USD pair would be limited as traders expect different policy outlooks between the two central banks. Traders await a Monthly Consumer Price Index on Wdnesday that could influence the RBA policy outlook.
NZD/USD
The NZD/USD pair edges higher to near 0.6210 during the Asian trading hours on Tuesday. The Federal Reserve’s (Fed) dovish stance and firmer US rate cut expectation continue to undermine the US Dollar (USD) broadly. Traders will closely monitor the key US data, including advanced Gross Domestic Product (GDP) Annualized for the second quarter (Q2) and Personal Consumption Expenditures (PCE) Price Index data, which are due later this week.
USD/CAD
The USD/CAD pair extends downside around 1.3485 during the early Asian session on Tuesday. Escalating geopolitical tensions in the Middle East provide some support to the commodity-linked Canadian Dollar (CAD) and weigh on USD/CAD. Later on Tuesday, the US Conference Board’s Consumer Confidence is due.
USD/CHF
USD/CHF extends its losing streak for the third successive day, trading around 0.8470 during the Asian hours on Tuesday. The USD/CHF pair may decline further due to safe-haven flows toward the Swiss Franc (CHF). The risk aversion sentiment prevails due to rising geopolitical tensions in the Middle East.
CRUDE OIL
Oil prices paused their recent advances, receding on Tuesday after surging more than 7% in the previous three sessions on supply concerns prompted by fears of a wider Middle East conflict and the potential shutdown of Libyan oil fields.
Gold price has entered a phase of upside consolidation above $2,500, as buyers await fresh catalysts for a fresh leg higher. The focus now shifts to the mid-tier US housing and sentiment data, as the Middle East tensions seem to ease.
Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.
