EUR/USD
EUR/USD is oscillating in a tight range above 1.0850 in early Europe on Tuesday. The pair stays cautious due to risk-off sentiment and a modest US Dollar uptick, as investors weigh the ECB and Fed rate cut expectations. The focus now remains on speeches from Fed officials.
GBP/USD
GBP/USD extends the rally near 1.2710 on Tuesday. Investors await fresh catalysts, with different Federal Reserve speakers set to speak later in the day. On Wednesday, the UK Consumer Price Index inflation data and FOMC Minutes will be closely watched.
USD/JPY
The Japanese Yen (JPY) lost ground for the fourth consecutive session on Tuesday, driven by the significant interest rate differential between Japan and the United States (US). This pressure on the JPY has bolstered the USD/JPY pair. Market sentiment emerges that the Bank of Japan (BoJ) may raise interest rates earlier than expected against the backdrop of the weak JPY.
AUD/USD
The Australian Dollar (AUD) continues to lose ground on Tuesday, possibly driven by the risk aversion sentiment. However, the AUD/USD pair edged higher after the release of Westpac Consumer Confidence during the early Asian hours. The index fell 0.3% month-over-month in May, compared to a 2.4% decline in April. It was the third straight month of drop but the softest pace in this sequence.
NZD/USD
The New Zealand Treasury’s Economic Update issued late last week showed that there is no near-term turning point seen for the economy and the consensus expects the Reserve Bank of New Zealand (RBNZ) to hold interest rate on Wednesday.
USD/CAD
USD/CAD trades a beat higher on Tuesday, rising into the 1.3620s, as the US Dollar (USD) strengthens in most pairs, on the back of safe-haven demand as markets are put on edge by reports the President of Iran, Ebrahim Raisi, died in a freak helicopter accident in Northern Iran over the weekend, according to Reuters.
USD/CHF
On Monday, the USD/CHF registered more than 0.20% gains, with buyers regaining control and achieving a daily close above 0.9100. This was sponsored by high US yields, which underpinned the Greenback, though it posted modest gains. As the Tuesday Asian session begins, the major trades at 0.9104, virtually unchanged.
CRUDE OIL
Oil prices fell in early Asia trade on Tuesday, with investors anticipating lingering U.S. inflation and higher interest rates to depress consumer and industrial demand.
GOLD
Gold price extends pullback from the lifetime high of $2,450 set on Monday, as the US Dollar draws haven demand amid broad risk aversion. Attention again turns toward upcoming speeches from the Federal Reserve policymakers that dominate early this week, in the absence of top-tier US economic events.
Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.
