EUR/USD
The EUR/USD pair clings to gains made on Monday around 1.1700 during the Asian trading session on Tuesday. The major currency pair strengthens as the US Dollar (USD) corrects sharply, following a fresh escalation in trade tensions between the United States (US) and the European Union (EU).
GBP/USD
The British Pound (GBP) is staging a modest rebound against the US Dollar (USD) on Tuesday, with GBP/USD trading around the 1.3480 mark during the American trading session. The upside in Sterling comes as the Greenback weakens broadly, weighed down by softening US Treasury yields and lingering uncertainty surrounding upcoming trade negotiations and the Federal Reserve’s (Fed) policy path.
USD/JPY
USD/JPY is recovering ground to near 147.50 in Tuesday’s Asian trading. A minor US Dollar rebound combined with an upbeat mood helps the pair’s upswing. Japan’s political concerns and increased bets of delayed BoJ interest rate hikes weigh on the Japanese Yen, supporting the major.
AUD/USD
AUD/USD is trading on the back foot above 0.6500 early Tuesday, although in a narrow range. The pair is undermined by a broad US Dollar rebound and a still dovish RBA July meeting Minutes, which offset a mildly positive risk sentiment. All eyes remain on trade talks.
NZD/USD
The NZD/USD pair edges lower to around 0.5960 during the Asian trading hours on Tuesday. The New Zealand (NZD) softens against the Greenback as fresh inflation data in New Zealand rose less than forecast in the June quarter.
USD/CAD
The USD/CAD pair extends the decline to 1.3680 during the early Asian session on Tuesday. The renewed concerns over the US Federal Reserve (Fed) independence weigh on the US Dollar (USD) against the Canadian Dollar (CAD). Fed Chair Jerome Powell is set to speak later on Tuesday.
USD/CHF
The USD/CHF pair drifts lower to around 0.8010 during the early European session on Tuesday. Concerns over the economic impact of higher US tariffs keep investors on edge and boost the Swiss Franc (CHF), a traditional safe-haven currency. Traders will take more cues from the speech from Federal Reserve (Fed) Chair Jerome Powell later today.
CRUDE OIL
Oil prices declined on Tuesday as concerns the brewing trade war between major crude consumers the U.S. and the European Union will curb fuel demand growth by lowering economic activity weighed on investor sentiment.
Gold price is reversing from over one-month highs of $3,403 reached in early Asia on Tuesday as buyers take a breather, awaiting clarity on potential US trade deals before the August 1 deadline. The latest retracement in Gold price could be attributed to a bout of profit-taking after Monday’s nearly 1.5% rally and ahead of key earnings results from America’s tech giant – Alphabet Inc, this Wednesday.
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