EUR/USD
EUR/USD opened with a bullish gap on Tuesday during the Asian session, trading near the 1.1110 level after suffering losses of over 2.5% in the previous session. The pair faced challenges as the US Dollar (USD) strengthened on the back of progress in the United States (US)-China trade negotiations.
GBP/USD
GBP/USD fell on Monday, tumbling a little over one percent and pushing the pair back down below the 1.3200 handle after a broad-based recovery in Greenback bidding. The United States (US) and China mutually agreed to temporarily suspend steep triple-digit tariffs during preliminary trade talks over the weekend, and markets have some room to breathe before the US’s bizarre “reciprocal” tariff schedule is set to come back into effect in 90 days.
USD/JPY
USD/JPY pulls back after registering more than 2% gains in the previous session. surrendering 148.00 in the Asian hours on Tuesday. The pair depreciates as the Japanese Yen gains ground on uncertainty over a US-Japan trade deal and comments from Japanese officials. US CPI eyed.
AUD/USD
AUD/USD has turned positive near 0.6375 after Australian Consumer Confidence rebounded 2.2% in May from April’s -6% drop. Additionally, a broad US Dollar retreat, as traders weigh the US-Chian trade truce, also adds to the pair’s upside. All eyes remain on US CPI data.
NZD/USD
The NZD/USD pair trades in positive territory around 0.5865 during the Asian session on Tuesday. The New Zealand Dollar (NZD) strengthens against the Greenback after the US and China announced a trade deal, easing fears of a trade war between the world’s two largest economies. Traders will keep an eye on the US April Consumer Price Index (CPI) report, which is due later on Tuesday.
USD/CAD
The USD/CAD pair extends the rally to around 1.3975 during the early Asian session on Tuesday, bolstered by a stronger US Dollar (USD). The Canadian Dollar (CAD) marked its weakest point since April 10 against the Greenback since April 10 after a US-China trade deal gave the American currency a boost.
USD/CHF
The USD/CHF pair is trading higher, supported by a broad rally in the US Dollar (USD) following a significant breakthrough in US-China trade relations. The two countries have agreed to a 90-day pause in their trade war, with the US cutting tariffs on Chinese goods to 30% (from 145%) and China reducing its duties to 10% (from 125%). This move has bolstered market sentiment, driving the US Dollar Index (DXY) up over 1% to its highest level in a month, near 101.90. The rally comes despite Federal Reserve (Fed) Governor Adriana Kugler’s warning that rapid shifts in trade policy have made it difficult for policymakers to assess the underlying strength of the US economy.
CRUDE OIL
Oil prices eased on Tuesday from a two-week high, weighed down by concerns about rising supplies, despite earlier optimism over the pause in the U.S.-China trade war after both countries temporarily cut tariffs.
Gold price consolidates the previous day’s 3% slump in the Asian session on Tuesday. The precious metal nurses losses as the US Dollar corrects, with markets assessing the US-China trade deal while taking profits off the table ahead of the US CPI inflation report.
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