EUR/USD
The EUR/USD pair trades in the negative territory around 1.1690 during the early Asian session on Tuesday. The Euro (EUR) weakens against the US Dollar (USD) amid rising tensions in the Middle East after Iran attacked the United Arab Emirates (UAE). Traders will keep an eye on the US April ISM Services Purchasing Managers Index (PMI) report, which is due later on Tuesday.
GBP/USD
The GBP/USD pair loses ground to near 1.3520 during the early European session on Tuesday. Rising geopolitical tensions after reports of Iranian missile strikes against US naval vessels near the Strait of Hormuz boost a safe-haven currency such as the US Dollar (USD) and act as a headwind for the major pair.
USD/JPY
USD/JPY traded essentially flat on Monday, settling close to 157.20 after a choppy session that opened with an early-Asia gap lower toward 156.20 before staging a steady recovery through European and US trade. The pair has been hemmed into a narrow 157.50-157.00 band following last week’s two-day collapse from above 160.00, with overlapping wicks and small-bodied candles pointing to indecision and two-sided whipsaws through Monday’s session.
AUD/USD
AUD/USD declined around 0.5% on Monday, settling close to 0.7170 after dipping as low as 0.7150 during the session. The pullback followed Friday’s four-year high above 0.7225, with bullish momentum waning through the new week as price drifted lower beneath the 0.7200 handle.
NZD/USD
The NZD/USD pair remains under some selling pressure for the third consecutive day and trades around the 0.5865-0.5860 area during the Asian session on Tuesday. Spot prices seem vulnerable to extend the previous day’s retracement slide from the 0.5925 horizontal resistance, or over a two-week high, as rising geopolitical tensions continue to underpin the US Dollar (USD).
USD/CAD
The USD/CAD pair struggles to capitalize on a two-day-old recovery move from the 1.3550 area, or its lowest level since March 10, and oscillates in a range during the Asian session on Tuesday. Spot prices currently trade around the 1.3620 area amid a combination of diverging forces.
USD/CHF
USD/CHF holds ground for the third consecutive day, trading around 0.7840 during the Asian hours on Tuesday. The Swiss Federal Statistical Office is set to release the April Consumer Price Index (CPI) data later in the day.
CRUDE OIL
Oil prices surged on Monday as tensions escalated in the Middle East. Iran claimed to hit a U.S. navy ship while Washington said it had safely helped two vessels transit the Strait of Hormuz.
Gold (XAU/USD) clings to modest recovery gains through the Asian session on Monday, albeit it lacks bullish conviction and remains close to an over one-month low, around the $4,500 mark, touched the previous day. Moreover, the fundamental backdrop favors bearish traders and warrants caution before positioning for any meaningful upside. Heightened US-Iran tensions continue to fuel inflationary concerns and keep expectations of higher interest rates alive. This, along with a firmer US Dollar (USD), contributes to capping the non-yielding bullion.
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