EUR/USD rose toward 1.1350 in the early European trading on Tuesday but lost its traction going into the American session. The US Dollar Index is clinging to modest daily gains as investors gear up for FOMC Chairman Powell’s renomination hearing.
GBP/USD turned south after rising to a fresh two-month high above 1.3600 and erased a large portion of its daily gains. Hawkish comments from Fed’s Bostic seems to be helping the dollar find demand ahead of FOMC Chairman Powell’s testimony.
USD/JPY gained some positive traction on Tuesday, albeit lacked bullish conviction. The cautious market mood underpinned the safe-haven JPY and acted as a headwind. Retreating US bond yields weighed on the USD and collaborated to cap the upside.
The AUD/USD pair maintained its bid tone through the early European session, albeit seemed struggling to capitalize on the move and remained below the 0.7200 mark.
The NZD/USD pair traded with a mild positive bias and held steady above mid – 0.6700s through the early European session, albeit lacked any follow-through buying.
The USD/CAD pair struggled to capitalize on the previous day’s goodish rebound from the vicinity of the 1.2600 mark, or a one-month low and met with a fresh supply on Tuesday. The pair maintained its offered tone through the first half of the European session and was last seen trading just below mid-1.2600s.
The USD/CHF pair has managed to recover its early lost ground and was last seen trading around the 0.9265-70 region, just a few pips below a four-week high touched on Monday.
WTI crude oil prices gain for the first time in three days, up 0.50% around $78.35 heading into Tuesday’s European session. The black gold stays inside a bearish trend channel formation, portrayed since last Thursday while remaining above the key moving averages.
The precious metal gained some positive traction for the third successive day on Tuesday. Retreating US bond yields undermined the USD and remained supportive. Hawkish Fed expectations might cap any further upside.
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