EUR/USD
EUR/USD trades with sizeable losses near 1.0300 in early Europe on Tuesday. The pair loses ground on renewed haven demand for the US Dollar as China retaliates to US tariffs with counter-tariffs, hitting risk sentiment. Markets remain wary of potential US tariffs on the Euro area.
GBP/USD
GBP/USD continues to gain ground for the second successive session, trading around 1.2430 during the Asian hours on Tuesday. The pair improved amid improved risk-on sentiment after US President Donald Trump announced late Monday that he would pause tariffs on Mexico and Canada.
USD/JPY
The Japanese Yen (JPY) remains depressed against its American counterpart heading into the European session on Tuesday, though it lacks follow-through selling amid bets that the Bank of Japan (BoJ) will hike rates further. Moreover, the prospects for further policy easing by the Federal Reserve (Fed) would result in a narrowing rate differential between Japan and the US, which further acts as a tailwind for the JPY.
AUD/USD
AUD/USD extends its bearish streak below 0.6200 in the early European morning on Tuesday. US President Trump tariffs on China kick off while Beijing retaliates with counter-tariffs, fuelling trade war fears. Aggressive RBA rate cut bets also add to the weight on the Aussie.
NZD/USD
The NZD/USD pair recovers some lost ground to near 0.5630 during the early Asian session on Tuesday. The US Dollar (USD) weakens after US President Donald Trump pauses tariffs on Mexico and Canada late Monday. However, investors will closely monitor the development surrounding the tariff deal with China, which might trigger the volatility in the markets.
USD/CAD
The USD/CAD pair attracts some dip-buying near the 1.4385 region during the Asian session on Tuesday and for now, seems to have stalled the previous day’s sharp retracement slide from its highest level since April 2003. The move-up is sponsored by a combination of factors and lifts spot prices back closer to the 1.4500 psychological mark.
USD/CHF
The USD/CHF pair trades with mild gains around 0.9125 during the early European session on Tuesday. The markets might turn cautious later in the day as traders await the developments surrounding tariff negotiations with China.
CRUDE OIL
Oil prices retreated on Tuesday as U.S. President Donald Trump paused for a month a decision on steep tariffs on Mexico and Canada, the United States’ biggest foreign oil suppliers, while prospects of higher OPEC+ supplies from April also weighed.
Gold price attracts buyers for the fourth straight day amid worries about Trump’s tariffs. Bets for more Fed rate cuts and inflation concerns further benefit the XAU/USD pair. Rebounding US bond yields and a modest USD uptick might cap gains for the commodity.
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