EUR/USD is trading above 1.0900 while within a narrow range heading into the European morning. The pair shrugs off a cautious market mood and firmer US Treasury bond yields amid a broadly subdued US Dollar. The focus shifts to US housing data and Fedspeak.
GBP/USD is advancing toward 1.2800, snapping a four-week downtrend early Tuesday. A broad-based US Dollar softness, a pause in the US Treasury yields rally and a cautiously optimistic market mood helps the pair recover further ground.
USD/JPY consolidates the week-start gains by printing mild losses around 146.00 heading into Tuesday’s European session. That said, the Yen pair justifies the market’s fears of the hawkish Bank of Japan (BoJ) monetary policy, as well as the downbeat sentiment.
The AUD/USD pair gains momentum for the second consecutive day. The pair edges higher to the 0.6420 mark in the Asian session on Tuesday. The Greenback faces some follow-through selling after S&P Global downgraded and revised its outlook for multiple US banks on Monday, following a similar action by Moody’s.
NZD/USD hovers around 0.5930 during the early hours of the Asian session on Tuesday, treading water to extend the gains registered in the previous trading session. The pair could face downward pressure, which could be attributed to the United States (US) government bond yields. The 10-year Treasury yields hits its highest since 2007, which could contribute to strengthening the Greenback.
USD/CAD renews its intraday low near 1.3540 while skating on thin ice during early Tuesday, struggling to defend the week-start pullback from the highest level since June 01. In doing so, the Loonie pair also hesitates in cheering the US Dollar’s retreat amid downbeat prices of Canada’s main export earner, namely WTI Crude Oil.
The USD/CHF pair loses momentum and holds below the 0.8800 mark in the early Asian session on Tuesday. Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, struggles to gain and hovers around 103.32.
Oil prices kept to a tight range on Tuesday after a weak start to the week, as investors weighed the prospect of softer Chinese demand after a disappointing interest rate cut, while also awaiting more signals on U.S. monetary policy.
Gold Price portrays bearish consolidation at the lowest level in five months while defending the week-start rebound amid mixed sentiment. US Dollar’s downbeat performance allows the XAU/USD to pare previous losses at the multi-day bottom.
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