EUR/USD remains on the back foot below 1.0850 in the early European morning. The pair has come under renewed selling pressure, as the US Dollar rebounds amid risk-off markets and sluggish Treasury yields. Eurozone GDP and US data are in focus.
GBP/USD is trading on a slippery slope near 1.2350 ahead of the London Open. The renewed uptick in the US Dollar amid risk aversion is weighing down on the pair. Meanwhile, the IMF said that the UK economy is the only G7 nation to shrink in 2023.
USD/JPY trims daily loss around 130.30 during early Tuesday morning in Europe as mixed sentiment in the market joins a pause in the US Treasury bond yields. Adding to the Yen pair traders’ confusion are the fresh fears of government meddling to defend the Japanese currency.
AUD/USD probes the two-day downtrend while picking up bids from the intraday low amid the risk-positive headlines from China and the International Monetary Fund (IMF). Even so, the buyers seem to struggle to retake control amid anxiety ahead of this week’s top-tier central bank meeting. That said, the Aussie pair makes rounds to 0.7055 during early Tuesday, following the recent bounce off intraday low of 0.7038.
The NZD/USD pair has printed a fresh weekly low at 0.6440 in the Asian session as investors’ risk-taking ability has faded dramatically. The Kiwi asset has been dumped by the market participants as the US Dollar Index (DXY) is advancing vertically.
USD/CAD runs out of ammunition to extend the previous day’s rebound amid sluggish markets on early Tuesday. In doing so, the Loonie pair justifies the pause in the Oil price downturn, as well as the halt in the risk-aversion wave, ahead of Canada’s monthly Gross Domestic Product (GDP) data.
USD/CHF bulls struggle to keep the reins after a three-day uptrend as the Swiss currency pair drops to 0.9240 while flashing the first daily loss in four during early Tuesday.
Oil prices were muted in early trade on Tuesday as optimism over better-than-expected economic data from China was offset by caution over an upcoming Federal Reserve meeting and an OPEC decision on production.
Gold price holds lower grounds as sellers attack the $1,920 mark heading into Tuesday’s European session. In doing so, the precious metal reverses the mid-Asian session’s corrective bounce off the stated trend line support.
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