EUR/USD
The EUR/USD pair extends its recovery to around 1.0985 on Tuesday during the early European trading hours. The major pair edges higher amid the modest weakening in the US Dollar. However, the upside for EUR/USD might be limited as traders expect a smaller interest rate cut from the US Federal Reserve in November.
GBP/USD
GBP/USD gains some positive traction and snaps a five-day losing streak to a multi-week low. A modest USD downtick lends support to the pair, though a combination of factors caps gains. Diminishing odds for an aggressive Fed policy easing limit the USD losses and act as a headwind.
USD/JPY
The Japanese Yen (JPY) struggles to capitalize on a modest Asian session uptick against its American counterpart, allowing the USD/JPY pair to stall its pullback from the highest level since August 16 touched on Monday. Diminishing odds for another interest rate hike by the Bank of Japan (BoJ) in 2024 and a more aggressive policy easing by the Federal Reserve (Fed) turn out to be a key factor acting as a tailwind for the currency pair.
AUD/USD
The Australian Dollar (AUD) loses traction on Tuesday, pressured by the comments from the National Development and Reform Commission press conference. China’s state planner stated that China’s economy is facing a more complex internal and external environments. Chinese officials disappoint traders without more major stimulus. Additionally, the risk-off sentiment amid the escalating geopolitical tensions in the Middle East might exert some selling pressure on riskier assets like the AUD for the time being.
NZD/USD
In Monday’s session, the NZD/USD pair extended its recent decline, falling by 0.60% to 0.6125. The pair has been in a downtrend lately, and today’s losses extend that trend. The technical indicators are also bearish, suggesting that the selling pressure is likely to continue.
USD/CAD
The USD/CAD pair extends the rally to near 1.3620 during the early Asian session on Tuesday. Strong labor market data on Friday caused traders to sharply ratchet back bets on aggressive Federal Reserve (Fed) interest-rate cuts, which boosts the US Dollar (USD) broadly.
USD/CHF
USD/CHF pulls back after breaking out of its multi-week range and rallying substantially higher on Friday.
CRUDE OIL
Oil prices fell more than $1 on Tuesday as traders took profits from a rally in the previous session that lifted the market to its highest level in over a month amid fears that the Middle East could be on the brink of a region-wide war.
Gold price maintains its corrective decline early Tuesday, looking to threaten the lower boundary of the recent range at $2,630. The focus now remains on the Middle East tensions, additional Chinese stimulus rollout and speeches from US Federal Reserve policymakers for fresh directives.
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