EUR/USD
EUR/USD is back in the red near 1.0500 in the European morning on Tuesday. A negative shift in risk sentiment revives the havem demand for the US Dollar, weighing down on the pair. Eurozone economic concerns undermine the Euro, adding to the pair’s downside.
GBP/USD
GBP/USD recovers toward 1.2700 in the European morning on Tuesday. The data from the UK showed that the ILO Unemployment Rate held steady at 4.3% in the three months to October, while the annual wage inflation climbed to 5.2%, helping Pound Sterling hold its ground.
USD/JPY
The Japanese Yen (JPY) continues with its struggle to attract any meaningful buyers and hangs near a three-week low against its American counterpart heading into the European session on Tuesday. Firming expectations that the Bank of Japan (BoJ) will keep short-term interest rates unchanged later this week, along with a positive risk tone, continue to undermine the safe-haven JPY. Adding to this, bets for a less dovish Federal Reserve (Fed) remain supportive of elevated US Treasury bond yields, which turns out to be another factor weighing on the lower-yielding JPY.
AUD/USD
The Australian Dollar (AUD) remains subdued following domestic consumer confidence indicating signs of strain, with December data showing a decline as consumers grow increasingly pessimistic about the economic outlook. Moreover, traders are anticipating a potential interest rate cut by the US Federal Reserve (Fed) on Wednesday, with attention largely focused on the Fed’s projections for 2025.
NZD/USD
NZD/USD holds ground as traders are bracing a potential interest rate cut by the US Federal Reserve (Fed) on Wednesday, with attention largely focused on the Fed’s projections for 2025. The NZD/USD pair hovers around 0.5780 during Asian trading hours on Tuesday.
USD/CAD
The USD/CAD pair trades with a positive bias for the fourth straight day on Tuesday and remains close to its highest level since April 2020 touched the previous day. Spot prices currently trade just above mid-1.4200s and the fundamental backdrop supports prospects for a further near-term appreciating move.
USD/CHF
The USD/CHF pair extends its upside to around 0.8955 during the early European session on Tuesday, bolstered by the renewed US Dollar (USD) demand. The Swiss National Bank (SNB) Quarterly Bulletin for the fourth quarter will be released on Wednesday. Also, the Federal Reserve (Fed) monetary policy meeting will take center stage on the same day.
CRUDE OIL
Oil prices eased further on Tuesday as China’s economic data renewed demand concerns, while investors remained cautious ahead of the U.S. Federal Reserve’s interest rate decision.
Gold price struggles to gain any meaningful traction and remains confined in a narrow range. Expectations for a less dovish Fed and elevated US bond yields cap the non-yielding XAU/USD. Geopolitical risks lend support to the safe-haven precious metal ahead of the FOMC meeting.
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