EUR/USD
The EUR/USD pair trades calmly near 1.1600 during the late Asian trading session on Tuesday, following the corrective move from an over two-week high of 1.1656. The major currency pair strives to regain strength as the US Dollar (USD) struggles to extend two-day recovery move, with investors turning cautious ahead of the United States (US) Nonfarm Payrolls (NFP) data for September, releasing on Thursday.
GBP/USD
GBP/USD remains subdued for the third successive session, trading around 1.3150 during the Asian hours on Tuesday. The pair struggles as the Pound Sterling (GBP) comes under strain after the United Kingdom (UK) Chancellor of the Exchequer Rachel Reeves abandoned planned income-tax rises. The decision has raised questions about the UK’s fiscal outlook, despite the Office for Budget Responsibility lowering its budget deficit forecast to £20 billion from £35 billion. Reeves is still anticipated to pursue revenue through threshold changes and salary-sacrifice reforms, favoring a smaller-scale budget over significant tax increases.
USD/JPY
The USD/JPY pair trades in positive territory near 155.20 during the early Asian session on Tuesday. The US Dollar (USD) strengthens against the Japanese Yen (JPY) as traders continue to gauge the long-awaited return of US economic data and the likelihood of further rate cuts by the Federal Reserve (Fed). The US September Nonfarm Payrolls (NFP) report will take center stage later on Thursday.
AUD/USD
AUD/USD trades around 0.6510 on Tuesday at the time of writing, down 0.40% on the day. The Australian Dollar (AUD) declines against the US Dollar (USD), paring part of last week’s gains as investors rapidly adjust expectations regarding the trajectory of Federal Reserve (Fed) policy. The US Dollar recovers as several Fed officials reiterate that the current policy stance remains “restrictive,” reducing the likelihood of an interest rate cut at the December meeting.
NZD/USD
The NZD/USD pair trades with mild losses around 0.5655 during the early European session on Tuesday. An imminent rate cut from the Reserve Bank of New Zealand (RBNZ) weighs on the New Zealand Dollar (NZD) against the Greenback. All eyes will be on the FOMC Minutes later on Wednesday, ahead of the US September Nonfarm Payrolls (NFP) report.
USD/CAD
The USD/CAD pair struggles to capitalize on the previous day’s positive move to a one-and-a-half-week high and oscillates in a narrow range during the Asian session on Tuesday. Spot prices currently trade around mid-1.4000s, nearly unchanged for the day, though the supportive fundamental backdrop favors bullish traders.
USD/CHF
USD/CHF retraces its recent gains registered in the previous session, trading around 0.7950 during the Asian hours on Tuesday. The Swiss Franc (CHF) gains against the US Dollar (USD) after Switzerland secured a deal to lower US tariffs to 15%, a significant drop from the 39% rate applied during the Trump administration. The development offers much-needed relief to a country that had been subject to the highest tariff levied on any developed economy.
CRUDE OIL
West Texas Intermediate (WTI) Oil price falls on Tuesday, early in the European session. WTI trades at $59.34 per barrel, down from Monday’s close at $59.71.
Brent Oil Exchange Rate (Brent crude) is also shedding ground, trading at $63.38 after its previous daily close at $63.75.
Gold (XAU/USD) maintains its offered tone near a one-week low through the early European session on Tuesday, with bears awaiting a break below the $4,000 psychological mark before positioning for further losses. A slew of influential FOMC members showed little conviction for reducing borrowing costs, forcing traders to pare their bets for another rate cut in December. This, in turn, is seen as a key factor that continues to exert downward pressure on the non-yielding yellow metal.
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