EUR/USD
EUR/USD drops toward 1.0600, extending its decline for a third consecutive day early Tuesday. The pair remains undermined by tariffs threat likely under US President-elect Donald Trump and on increased bets for ECB rate cuts. Germany’s ZEW survey and Fedsepak are awaited.
GBP/USD
GBP/USD extends its downside below 1.2850 early Tuesday. The US Dollar remains firm as Trump trades continue to benefit. Investors eagerly await the UK employment data for further trading impetus in the major.
USD/JPY
The Japanese Yen (JPY) recovers around 50-60 pips intraday against its American counterpart, dragging the USD/JPY pair to mid-153.00s in the last hour. The JPY bears turn cautious amid speculations that Japanese authorities might intervene in the FX market to prop up the domestic currency. This, in turn, offers some support to the JPY, though the upside remains capped in the wake of the uncertainty over the Bank of Japan’s (BoJ) rate-hike plans.
AUD/USD
The Australian Dollar (AUD) depreciates against the US Dollar (USD) for the third consecutive session on Tuesday. Proposed tariff increases on Chinese goods by US President-Elect Donald Trump could negatively impact the AUD, as Australia is one of China’s largest exporters.
NZD/USD
The NZD/USD pair extends the decline to near 0.5960 during the early Asian session on Tuesday. The New Zealand Dollar (NZD) weakens against the Greenback amid concerns about possible tariffs by Donald Trump’s incoming administration.
USD/CAD
The USD/CAD pair gains traction to near 1.3925 during the early Asian session on Tuesday, bolstered by the firmer US Dollar (USD) amid the strong return of the “Trump trade.” The Canadian September Building Permits are due later on Tuesday. The US October Consumer Price Index (CPI) inflation data will take center stage on Wednesday.
USD/CHF
The USD/CHF pair attracts some buyers to around 0.8810 during the early European session on Tuesday. The stronger US Dollar (USD) broadly provides some support to the pair. The Federal Reserve’s (Fed) Christopher Waller, Thomas Barkin, Neel Kashkari and Patrick Harker are set to speak later in the day. The US Consumer Price Index (CPI), and Producer Price Index (PPI) will be in the spotlight on Wednesday.
CRUDE OIL
Oil prices eased on Tuesday as investor disappointment over China’s latest stimulus plan and oversupply concerns weighed on the market, along with a stronger dollar.
Gold price remains depressed near its lowest level since October 10 touched the previous day. The Trump-related trades keep the USD close to a multi-month top and weigh on the XAU/USD. Elevated US bond yields support prospects for the precious metal to experience further downside.
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