The EUR/USD pair refreshed its day’s high around 1.0730 and is hovering around it continuously in the Tokyo session. The major currency pair is expected to continue its upside momentum as the US Dollar Index (DXY) is struggling to place feet ahead of the United States Consumer Price Index (CPI) data.
GBP/USD bulls take a breather around mid-1.2100s heading into Tuesday’s London open, after posting the biggest daily jump in a month. In doing so, the Cable pair fails to cheer the US Dollar weakness as traders seem cautious ahead of the UK jobs report.
USD/JPY bounces off intraday low but remains stuck with mild losses near 132.00 amid early Tuesday morning in Europe. The Yen pair initially cheered the pullback in the Treasury bond yields before the Japanese government’s announcements of Bank of Japan (BoJ) officials triggered hawkish concerns and weighed on the prices. Also favoring the USD/JPY bears is the broad US Dollar pullback as traders brace for a positive surprise from the US Consumer Price Index (CPI) for January.
The AUD/USD pair is looking for demand after a minor correction to near 0.6950 in the Tokyo session. The Aussie asset is expected to display a sideways auction as investors are awaiting the release of the US Inflation for fresh impetus. The US Dollar Index (DXY) is not demonstrating any action as the inflation data might surprise investors.
NZD/USD has rebounded firmly after a corrective move to near 0.6330 in the Asian session. The Kiwi asset is looking to stretch its recovery move above the immediate resistance of 0.6350 as the US Dollar Index (DXY) has extended its downside to near 102.77. Considering the downside pressure in the USD Index ahead of the release of the January inflation report, it is likely that investors are highly confident that the annual Consumer Price Index (CPI) will continue its declining trend consecutively for the seventh time.
USD/CAD portrays the market’s cautious mood as traders keep their eyes on the US Consumer Price Index (CPI) for January during early Tuesday. In doing so, the Loonie pair holds lower grounds near 1.3330 following a two-day downtrend.
The USD/CHF pair has shifted its business below the round-level resistance of 0.9200 in the early Asian session. The Swiss Franc asset is expected to deliver more losses as investors have ignored the consequences associated with the United States inflation, in case it delivers a surprise upside. The risk appetite of the market participants has improved dramatically and has provided support to the risk-sensitive assets.
Oil prices extended losses on Tuesday as markets gauged the potential impact of additional crude sales from the U.S. Strategic Petroleum Reserve, while caution persisted ahead of a key reading on U.S. inflation due later in the day.
Gold bulls are coming up for the last dance on Tuesday, lifting Gold price from six-week lows of $1,850. Investors gear up for the main event risk of this week, the all-important United States Consumer Price Index data for January.
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