EUR/USD
EUR/USD is holding lower ground, heading toward 1.0750 in early Europe on Tuesday. Risk aversion remains the underlying theme on renewed China concerns, underpinning the sentiment around the US Dollar amid positive US Treasury bond yields.
GBP/USD
GBP/USD remains in the negative territory below 1.2600 in the European morning on Tuesday. The US Dollar finds haven demand amid a dour mood while the Pound Sterling stays anxious ahead of BoE Governor Bailey’s testimony on the Monetary Policy Report before the UK Parliament.
USD/JPY
The USD/JPY pair holds above the 150.00 psychological mark during the early Asian trading hours on Tuesday. The pair edges higher on the day due to the renewed US Dollar (USD) demand. Meanwhile, the US Dollar Index (DXY), which tracks six major currencies to gauge the USD’s value, recovers to 104.35. USD/JPY currently trades near 150.32, up 0.12% on the day.
AUD/USD
The AUD/USD pair loses traction below the mid-0.6500s during the early Asian trading hours on Tuesday. The Reserve Bank of Australia (RBA) will publish the minutes of its February monetary policy meeting later in the day. The pair currently trades around 0.6532, down 0.12% on the day.
NZD/USD
The NZD/USD pair trades flat during the early Asian session on Tuesday. The market trades in a quiet session after a US holiday. The People’s Bank of China (PBoC) will announce its decision on interest rates on Tuesday. Meanwhile, some pushback against rate cut expectations from the Federal Reserve (Fed) might lift the Greenback and cap the upside of the pair. At press time, NZD/USD is trading at 0.6148, losing 0.02% on the day.
USD/CAD
The USD/CAD pair trades on a stronger note above the 1.3500 psychological mark during the Asian session on Tuesday. The uptick of the pair is bolstered by the stronger US Dollar (USD). The Canadian inflation data will be in the spotlight on Tuesday and could trigger volatility in the market ahead of the FOMC Minutes. At press time, USD/CAD is trading at 1.3506, gaining 0.12% on the day.
USD/CHF
The USD/CHF pair is struck in a tight range around 0.8800 in the London session on Monday. The Swiss Franc asset struggles for a direction as US markets will remain closed on Monday because of Presidents’ Day. Therefore, lower trading activity is anticipated.
CRUDE OIL
Oil prices were broadly steady on Tuesday, hovering close to three-week highs on heightened Middle East tensions and recovering China demand.
Gold loses ground as USD improves on Tuesday. The improvement in US Treasury yields could impact the non-yield assets like Gold. Investors await FOMC minutes to gain the Fed’s perspective on the interest rate trajectory.
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