The EUR/USD pair has faced some selling pressure after climbing above 1.1060 in the Asian session. A loss in the upside momentum in the major currency pair is backed by a recovery attempt by the US Dollar Index (DXY).
GBP/USD marches to the highest levels in seven days as bulls attack the 1.2500 threshold during Tuesday’s Asian session. The Cable has shown a stellar upside move amid weakness in the US Dollar Index (DXY). The USD Index has refreshed its weekly low at 101.20 and more downside is in pipeline as investors are anticipating that the Federal Reserve (Fed) will conclude its quantitative tightening program after a 25 basis point (bp) interest rate hike in May.
USD/JPY recovers from an intraday low of 134.00, near 134.25 by the press time, as the bulls struggle to defend the week-start gains amid sluggish Tuesday morning. In doing so, the Yen pair justifies comments from the newly appointed Bank of Japan (BoJ) Governor Kazuo Ueda in the Japanese parliament.
AUD/USD renews its intraday low near 0.6680 amid sour sentiment during early Tuesday. In doing so, the Aussie pair reverses the corrective bounce from a two-week low marked the previous day. While watching over the risk catalysts, escalated indecision among the US policymakers amid the looming debt ceiling expiration in June weighs on the market sentiment of late. On the same line is the trader’s preparation for the US Federal Reserve’s (Fed) one last rate hike, worth 0.25%, in May before signaling the policy pivot.
The NZD/USD pair has recorded a steep run after shifting its business above 0.6150 in the Asian session. The Kiwi asset has shifted into a bullish trajectory amid a sell-off in the US Dollar Index (DXY). The USD Index has continued its declining trend to near 101.20 as the Federal Reserve (Fed) is set to announce a pause in the rate-hiking spree after a consecutive 25 basis point (bp) rate hike in May.
The USD/CAD pair is showing signs of volatility contraction around 1.3540 in the early Tokyo session. The Loonie asset has failed to show a power-pack action despite a breakdown move in the US Dollar Index (DXY) and a solid recovery in the oil price.
USD/CHF takes offers to refresh a seven-day low around 0.8870 during early Tuesday in Asia. In doing so, the Swiss currency pair cheers broad US Dollar weakness as options market bears keep the reins.
Oil prices rose slightly in early Asian trade on Tuesday, taking some support from a weaker dollar as caution set in before a string of central bank rate decisions and key economic indicators over the coming weeks.
Gold price consolidates the last two-week losses as market sentiment dwindles amid a light calendar, allowing traders to better prepare for the key US Q1 GDP and Core PCE Price Index, the Fed’s favorite inflation gauge.
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