EUR/USD is continuously auctioning in a narrow range above 1.0800 in the Asian session. The major currency pair is struggling to deliver a decisive move as investors are confused over further action after Monday’s US debt-ceiling meet ended without agreement.
GBP/USD aptly portrays the pre-data anxiety as it dribbles around 1.2430 during early Tuesday morning in London. The Cable pair marks the traders’ cautious mood ahead of the first readings of the UK’s S&P Global/CIPS PMI for May, as well as the US S&P Global PMIs for the said month.
The USD/JPY pair has faced selling pressure as the meeting between US President Joe Biden and House of Representatives Speaker Kevin McCarthy has been concluded without an agreement. Speaker McCarthy has termed the meeting as constructive but an agreement has not been made yet. US Biden has denied agreeing over proposed spending cuts in the budget calling them ‘extreme’ while Republicans are not supportive of the proposed new taxes on the Wealthy community.
AUD/USD portrays a downbeat performance on early Tuesday, following a sluggish start of the week, as it takes offers to reverse the mid-Asian session rebound from intraday low to print mild losses around 0.6650 by the press time. In doing so, the Aussie pair bears the burden of the firmer US Dollar amid hopes of avoiding the US default, despite US President Joe Biden and House Speaker Kevin McCarthy’s failure to offer a deal to avoid the debt ceiling expiry during the latest negotiations. That said, US Dollar Index (DXY) grinds higher around 103.30 during the two-day uptrend by the press time.
NZD/USD is up by some 0.2% and has risen from a low of 0.6261 to reach a high of 0.6292 so far. However, we have the Reserve Bank of New Zealand tomorrow which is likely to see the Kiwi tread water ahead of the event.
USD/CAD remains sidelined around 1.3500, after two consecutive days of inaction, as traders brace for a busy Tuesday amid early hours of Asian session. In doing so, the Loonie pair fails to justify the recently firmer prices of WTI crude oil, Canada’s key export, as firmer US Dollar and yields play their roles. If we trace the reason behind the pair’s dull performance on Monday, the Canadian Bank Holiday could be held responsible.
USD/CHF bulls return to the table after a two-day absence as the US Dollar ignores deadlock in debt ceiling talks to remain firmer. That said, the Swiss Franc (CHF) pair prints mild gains around 0.8990 by the press time. US Dollar Index (DXY) grinds higher past 103.00 during the two-day uptrend, close to 103.30 at the latest, even as US President Joe Biden and House Speaker Kevin McCarthy failed to offer a deal to avoid the debt ceiling expiry during the latest negotiations.
Oil prices rose in early Asian trade on Tuesday, extending gains into a third straight session as markets bet on an improvement in U.S. fuel demand ahead of the memorial day weekend, while a positive tone from lawmakers on raising the debt ceiling also aided sentiment.
Gold price remains on the back foot around the intraday low of near $1,961 as it drops for the second consecutive day while reversing Friday’s corrective bounce amid early Tuesday in Europe. In doing so, the precious metal bears the burden of the firmer US Dollar.
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