EUR/USD
The EUR/USD pair loses ground around 1.1705 during the Asian trading hours on Tuesday. The Euro softens against the US Dollar after France’s new Prime Minister Sebastien Lecornu and his government resigned on Monday, hours after announcing his cabinet line-up. On the other hands, the German August Factory Orders and French Trade Balance data are due later on Tuesday.
GBP/USD
GBP/USD loses ground after two days of gains, trading around 1.3470 during the Asian hours on Tuesday. However, the pair may regain its ground as the Pound Sterling could gain ground, driven by the market caution regarding the Bank of England’s policy stance amid sticky inflationary pressures and cooling labor market conditions.
USD/JPY
The Japanese Yen (JPY) remains on the back foot against a mildly positive US Dollar (USD) and languishes near its lowest level since early August, touched during the Asian session on Tuesday. An unexpected result from Japan’s leadership contest sets the country on course for more expansionary fiscal policies, which could further complicate the Bank of Japan’s (BoJ) task. In fact, traders have started pricing out the possibility of an interest rate hike by the BoJ later this month, which turns out to be a key factor behind the JPY’s relative underperformance.
AUD/USD
Australian Dollar (AUD) may edge lower; any decline is likely part of a lower range of 0.6580/0.6620. In the longer run, AUD remains neutral but is now expected to trade in a narrower range of 0.6555/0.6640AUD remains neutral but is now expected to trade in a narrower range of 0.6555/0.6640.
NZD/USD
The NZD/USD pair faces rejection near a technically significant 200-day Simple Moving Average (SMA) near the 0.5845 region, or a nearly two-week high touched the previous day, and drifts lower during the Asian session on Tuesday. Spot prices currently trade around the 0.5830 region, down 0.20% for the day, and now seem to have stalled the recent recovery from the lowest level since April set in September.
USD/CAD
The USD/CAD pair gains traction near 1.3950 during the Asian trading hours on Tuesday, bolstered by a rebound in the US Dollar (USD). However, the upside for the pair might be limited amid fears of a prolonged US government shutdown and higher crude oil prices. The Canadian International Merchandise Trade and Ivey Purchasing Managers Index (PMI) reports will be in the spotlight later on Tuesday.
USD/CHF
USD/CHF remains subdued for the third successive session, trading around 0.7950 during the Asian hours on Tuesday. The pair loses ground as the Swiss Franc (CHF) receives support from rising inflation expectations in Switzerland, which diminishes fears of the Swiss National Bank (SNB) pushing interest rates into a negative territory.
CRUDE OIL
Oil prices extended gains on Tuesday as a smaller-than-expected November output hike by OPEC+ helped to ease some fears of a growing supply glut.
Gold holds the latest uptick to a new all-time high near $3,980 in Tuesday’s Asian trades, as buyers still keep their sights on the key $4,000 barrier. Gold buyers refuse to give up yet even as the US Dollar sustains the previous turnaround so far this Tuesday.
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