EUR/USD is defending minor bids above 0.9800, benefiting from a broadly subdued US dollar and a better market mood. Weak US ISM Manufacturing PMI weighed down on the dollar. Eurozone PPI, Fedspeak and Lagarde eyed.
GBP/USD is rising back above 1.1300, as the recovery gains momentum amid risk flows and a broad-based US dollar weakness. GBP bulls continue to draw support from the UK government’s U-turn on the higher tax rate cut.
The USD/JPY pair displays a lackluster performance after picking bids to near 144.40 in the Tokyo session. For the past week, the asset has been showing back-and-forth moves in a 144.00-145.35 range amid the unavailability of a potential trigger. The investing community knows that the US dollar index (DXY) has been auctioning on a negative trajectory for the past week. However, the USD/JPY asset has remained sideways, which indicates that the yen bulls are extremely weak.
The AUD/USD pair comes under fresh selling pressure on Tuesday and erodes a part of the previous day’s strong gains. The pair maintains its offered tone through the early European session and is currently placed near the lower end of its daily trading range, just above mid-0.6400s.
The New Zealand dollar erases trims some of the last Friday’s losses, reclaiming the 0.6700 figure on a risk-on impulse. Measures of US economic activity in the US weakening, and some readings showing that inflation in the manufacturing sector is easing, is perceived by market players as a reason for the Fed to slow its pace of tightening.
The USD/CAD dropped from around two-year highs at around 1.3837 as the US dollar weakened across the board, as sentiment shifted positively due to a U-turn of the UK’s budget. Rumors of a slash in global oil production spurred a jump in oil prices, bolstering the oil-linked loonie.
The USD/CHF is slightly down as the Asian Pacific session begins, though in the week it is gaining some 0.49%, after hitting a weekly high in the mid-0.99-1.00 range, due to improvement in sentiment; however, it retraced some to the current spot prices.
Oil prices edged up on Tuesday as expectations that OPEC+ may agree to a large cut in crude output when it meets on Wednesday outweighed concerns about the global economy.
Gold price is treading water at around $1,700 amid weaker US dollar, yields. The metal is biding time before the next push higher.
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