EUR/USD
EUR/USD edges lower after registering modest gains in the previous session, trading around 1.1660 during the Asian hours on Monday. The 14-day Relative Strength Index (RSI) momentum indicator at 42.69 sits below the 50 midline and is easing, confirming a bearish tilt. RSI near 43 keeps sellers in control without reaching oversold, suggesting consolidation could precede follow-through.
GBP/USD
The GBP/USD pair edges higher to near 1.3470 during the early European session on Tuesday. The Greenback weakens against the Pound Sterling (GBP) following the US Department of Justice’s threat to indict Federal Reserve (Fed) Chair Jerome Powell over comments to Congress about a building renovation project.
USD/JPY
The Japanese Yen (JPY) prolongs its downtrend through the Asian session on Tuesday, which, along with the emergence of some US Dollar (USD) buying, lifts the USD/JPY pair to the 159.00 neighborhood, or the highest level since July 2024. Reports that Prime Minister Sanae Takaichi may soon call a snap election to take advantage of strong approval ratings fueled hopes for more expansionary fiscal policy. This comes on top of the uncertainty over the likely timing of the next interest rate hike by the Bank of Japan (BoJ), which, along with deepening Japan–China diplomatic crisis, and a positive risk tone, undermines the safe-haven JPY.
AUD/USD
The Australian Dollar is posting a significant recovery against the US Dollar on Monday. The pair has returned to levels above 0.6700 during the European session, after bouncing near 0.6670, as renewed political pressure on the US Federal Reserve (Fed) has sent the Greenback tumbling against its main peers.
NZD/USD
The NZD/USD pair trades on a firmer note near 0.5770 during the early European trading hours on Tuesday. The US Dollar (USD) remains under selling pressure against the New Zealand Dollar (NZD) amid renewed concerns over the Federal Reserve’s (Fed) independence.
USD/CAD
The USD/CAD pair lacks any firm intraday directional bias and oscillates in a narrow band below the 1.3900 mark heading into the European session on Tuesday. Spot prices, for now, seem to have stalled the previous day’s pullback from the highest level since December 5, touched last Friday, as traders keenly await the release of the US inflation figures.
USD/CHF
USD/CHF loses ground for the second successive day, trading around 0.7970 during the Asian hours on Tuesday. The pair depreciates as the Swiss Franc (CHF) receives support from safe-haven demand amid geopolitical tensions and concerns over Federal Reserve (Fed) independence.
CRUDE OIL
Oil prices extended gains in Asian trading on Tuesday, rising for a fourth consecutive session amid supply disruption risks from Iran, where intensifying anti-government protests have stoked geopolitical fears.
Gold (XAU/USD) remains on the defensive below the $4,600 mark heading into the European session on Tuesday, though the downside seems limited amid a supportive fundamental backdrop. The US Dollar (USD) attracts some buyers following the previous day’s decline and turns out to be a key factor acting as a headwind for the commodity. That said, concerns about the US Federal Reserve’s (Fed) independence might keep a lid on any meaningful USD appreciation. This, along with bets for more Fed rate cuts, might continue to benefit the non-yielding yellow metal.
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