EUR/USD
The Zentrum für Europäische Wirtschaftsforschung (ZEW) will release its German Economic Sentiment Index and the Current Situation Index for February at 10:00 GMT later on Tuesday.
ZEW Survey – Economic Sentiment Index for Germany is expected to rise to 65.0 in February, from 59.6 that came in January. Meanwhile, the Current Situation Sub-Index is expected to improve to -65.7 in the reported month, up from the previous reading of -72.7.
ZEW Survey – Economic Sentiment in Eurozone is expected to improve to 45.2 in February, from 40.8 previously.
The EUR/USD pair may stay subdued if Germany’s ZEW Survey data meet forecasts, as earlier Consumer Price Index (CPI) and Harmonized Index of Consumer Prices (HICP) figures for January offered little support for the Euro (EUR). However, the Euro may gain support as the European Central Bank (ECB) announced to expand global access to the EUR liquidity backstop to bolster the currency’s international role.
GBP/USD
The Pound (GBP) accelerated its reversal against the US Dollar (USD) on Tuesday, dipping below 1.3600 and reaching session lows around 1.3570 at the time of writing. UK data released on Tuesday revealed an unexpected unemployment increase in December, adding pressure on the BoE to lower borrowing costs further.
USD/JPY
The USD/JPY pair meets with a fresh supply on Tuesday and slides further below the 153.00 mark heading into the European session, reversing a major part of the previous day’s positive move. Spot prices, however, manage to hold above the 200-day Exponential Moving Average (EMA) support, around the 152.50 region, preserving a tentative bullish bias despite a shallow cushion.
AUD/USD
AUD/USD edges lower after posting minute gains in the previous session, trading around 0.7070 during the Asian hours on Tuesday. The pair remains subdued following the release of the Reserve Bank of Australia (RBA) Meeting Minutes, which suggested that February’s rate increase was prompted by stronger-than-anticipated economic data, persistent broad-based inflation, and looser financial conditions.
NZD/USD
NZD/USD remains subdued during the Asian hours on Tuesday, trading around 0.6030 at the time of writing. The pair depreciates as the New Zealand Dollar (NZD) holds losses after Statistics NZ reported that the Food Price Index rose 2.5% month-over-month (MoM) in January, the largest monthly increase in four years. Annual food inflation accelerated to 4.6% from 4.0% in December, with all subgroups recording gains.
USD/CAD
The Canadian Dollar (CAD) remains on the back foot against the US Dollar (USD) on Tuesday, with USD/CAD extending its advance for a fourth consecutive day as the Greenback steadies following its recent weakness. At the time of writing, the pair is trading around 1.3628.
USD/CHF
The USD/CHF pair trades marginally lower to near 0.7690 during the European trading session on Tuesday. The Swiss Franc pair faces slight selling pressure, while the US Dollar (USD) trades broadly calm ahead of the opening of United States (US) markets after an extended weekend.
CRUDE OIL
Oil prices fell slightly in holiday-thinned trade on Tuesday, with focus squarely on upcoming negotiations between the U.S. and Iran.
Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday. The commodity, however, bounces back above the $4,900 mark as traders opt to await more cues about the US Federal Reserve’s (Fed) rate-cut path before placing fresh directional bets.
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