EUR/USD
The EUR/USD pair loses ground to around 1.1905, snapping the two-day winning streak during the early European trading hours on Tuesday. Markets might turn cautious ahead of the release of key US economic data, including US employment and inflation reports that were pushed back slightly due to the recently ended four-day government shutdown.
GBP/USD
The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling (GBP) edges lower against the US Dollar (USD) amid political risk in the United Kingdom (UK) and rising expectations of near-term Bank of England (BoE) rate cuts.
USD/JPY
The Japanese Yen (JPY) gains strong follow-through positive traction for the second consecutive day and advances to over a one-week high against a broadly weaker US Dollar (USD) on Tuesday. The outcome of Japan’s snap election on Sunday removes political uncertainty, which, along with intervention warnings by Japanese authorities and bets that the Bank of Japan (BoJ) will stick to its policy normalization path, acts as a tailwind for the JPY.
AUD/USD
The AUD/USD pair attracts some sellers on Tuesday, eroding part of the previous day’s strong move up to the 0.7100 mark or a three-year high and snapping a two-day winning streak. Spot prices slide to a fresh daily low, around the 0.7065 area, during the early European session, though the broader fundamental backdrop warrants some caution before positioning for deeper losses.
NZD/USD
The daily chart shows NZD/USD completing a broad base-building process after bottoming at 0.5580 in late October 2025, with price now trading at 0.6053, above both the 50 Exponential Moving Average (EMA) at 0.5867 and the 200 EMA at 0.5849. The recovery from the October low produced a higher-low sequence through November and December, with the pair breaking above the 0.5850 resistance zone (a level that capped rallies for much of August and September) in late December and accelerating into January. A strong impulse leg in late January pushed NZD/USD to a high of 0.6121, its best level since mid-July 2025, before sellers stepped in and forced a pullback last week as mixed New Zealand employment data cooled expectations for a near-term rate hike from the Reserve Bank of New Zealand (RBNZ). The unemployment rate climbed to 5.4% in Q4, a decade high, even as employment growth of 0.5% beat forecasts, prompting markets to push back the expected timing of a hike from September to October. The RBNZ is holding its Official Cash Rate (OCR) at 2.25% after an aggressive easing cycle, and its first policy meeting under new Governor Anna Breman on February 18 will be closely watched for any shift in forward guidance.
USD/CAD
The USD/CAD pair trades on a flat note near 1.3560 during the early European session on Tuesday. Nonetheless, a shift in the Bank of Canada (BoC) monetary policy expectations could provide some support to the Canadian Dollar (CAD) against the Greenback. Traders await the US Retail Sales data later on Tuesday, ahead of the delayed US employment report for January.
USD/CHF
USD/CHF holds ground after two days of losses, trading around 0.7670 during the Asian hours on Tuesday. The pair could weaken further as the US Dollar (USD) remains under pressure amid concerns that foreign demand for dollar-denominated assets may soften, after Chinese regulators urged financial institutions to limit US Treasury holdings to reduce concentration risks and exposure to uncertain US economic policies.
CRUDE OIL
Oil prices eased slightly on Tuesday as traders gauged the potential for supply disruptions after U.S. guidance for vessels transiting the Strait of Hormuz kept attention squarely on tensions between Washington and Tehran.
Gold (XAU/USD) recovers a major part of its early lost ground to levels below the $5,000 psychological mark and trades with modest intraday losses heading into the European session on Tuesday. The outcome of Japan’s snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.
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