EUR/USD
The EUR/USD pair trades with mild losses near 1.1785 during the early Asian session on Tuesday. Traders continue to digest ongoing Middle East tensions ahead of the 14-day ceasefire expiration. The ZEW Survey from Germany and the Eurozone is due later on Tuesday. On the US docket, the US March Retail Sales report will be published.
GBP/USD
GBP/USD advanced 0.1% on Monday, trading around 1.3530 after pulling back from last week’s peak near 1.3600. The pair has spent recent sessions consolidating between 1.3500 and 1.3600, with small-bodied daily candles pointing to hesitation following the strong recovery from early April lows close to 1.3160. Bullish momentum has cooled at the top of the range.
USD/JPY
The USD/JPY pair regains some positive traction following the previous day’s two-way directionless price moves and climbs to the 159.00 mark during the Asian session on Tuesday. Spot prices, however, remain confined in a familiar range held over the past month or so, warranting some caution before placing aggressive directional bets amid mixed fundamental cues.
AUD/USD
The AUD/USD pair trades 0.35% lower around 0.7150 during the European trading session on Tuesday. The Aussie pair corrects after a sharp upside move on Monday, as the US Dollar (USD) rises ahead of the confirmation hearing of United States (US) President Donald Trump’s nominee, Kevin Warsh, as the Federal Reserve’s (Fed) next chairman at 14:00 GMT.
NZD/USD
The NZD/USD pair trades 0.3% higher above 0.5900 during the Asian trading session on Tuesday, but struggles to extend its gains above 0.5920. The Kiwi pair broadly reflects strength as the market sentiment turns risk-on due to reports claiming that Iran has agreed to another round of peace talks with the United States (US).
USD/CAD
The USD/CAD pair remains on the defensive around 1.3650 during the early European session on Tuesday. Rising oil prices due to Middle East tension provide some support to the commodity-linked Loonie. It is worth noting that Canada is a major oil-exporting country, and high crude oil prices generally have a positive impact on the Canadian Dollar (CAD).
USD/CHF
USD/CHF edges higher after registering modest losses in the previous day, trading around 0.7790 during the Asian hours on Tuesday. The pair gains ground as the US Dollar (USD) receives support from increasing risk aversion, driven by persistent uncertainty surrounding US–Iran ceasefire negotiations. Traders assess ongoing geopolitical tensions in the Middle East as the 14-day ceasefire deadline approaches.
CRUDE OIL
Oil prices fell over $1 on Tuesday, reversing gains in the previous session, on expectations peace talks between the U.S. and Iran will take place this week and lead to more supply to flow from the key Middle East producing region.
Gold (XAU/USD) sticks to intraday losses below the $4,800 mark through the first half of the European session on Tuesday, though it holds above a one-week low touched the previous day. Investors remain skeptical about a potential US-Iran agreement amid the standoff over the Strait of Hormuz. The US Navy seized an Iranian-flagged cargo ship in the Gulf of Oman as part of its blockade. In response, Iran once again closed the strategic waterway, which acts as a tailwind for Crude Oil prices. This, in turn, revives inflationary concerns and supports the US Dollar (USD), exerting pressure on the commodity.
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