EUR/USD
EUR/USD edges higher on Monday up by more than 0.40% as traders ditch the US Dollar as risk appetite deteriorates following Trump’s decision to escalate the US-European Union trade war amid the White House interests over Greenland. The pair trades at 1.1642 after bouncing off daily lows of 1.1576.
GBP/USD
GBP/USD holds ground after registering modest gains in the previous session, trading around 1.3430 during the Asian hours on Tuesday. The pair moves little as traders adopt caution ahead of labor market data from the United Kingdom (UK) due later in the day. Focus will shift toward the UK Consumer Price Index (CPI) and Retail Sales figures for December later in the week.
USD/JPY
The Japanese Yen (JPY) remains on the front foot against its American counterpart through the Asian session on Tuesday and remains close to a one-week high, touched the previous day. Expectations that Japanese authorities would intervene to counter further weakness in the domestic currency continue to act as a tailwind for the JPY. Adding to this, rising geopolitical tensions over Greenland, along with renewed trade war fears, weigh on investors’ sentiment and further underpin the JPY’s safe-haven status.
AUD/USD
The Australian Dollar advances against the US Dollar (USD) on Tuesday, extending its gains for the second successive session. The AUD/USD pair appreciates as the Greenback struggles amid escalating uncertainty surrounding the United States (US)–Greenland issue.
NZD/USD
The NZD/USD pair loses ground to around 0.5790 during the early Asian session on Tuesday, pressured by renewed US Dollar (USD) demand. Nonetheless, the potential downside for the pair might be limited amid the fresh US President Donald Trump trade war. The US ADP weekly report will be released later on Tuesday.
USD/CAD
USD/CAD edges higher after registering modest losses in the previous session, trading around 1.3870 during the Asian hours on Tuesday. The pair appreciates as the commodity-linked Canadian Dollar (CAD) struggles amid lower Oil prices, given Canada’s status as the largest crude exporter to the United States (US).
USD/CHF
The USD/CHF pair trades in the negative territory for the third consecutive day around 0.7960 during the early European trading hours on Tuesday. The Swiss Franc (CHF) strengthens against the Greenback as US President Donald Trump’s tariff threats spark safe-haven demand.
CRUDE OIL
Oil prices rose on Tuesday after better-than-expected economic growth data from China lifted demand optimism, with markets also watching President Donald Trump’s threats of increased U.S. tariffs on European nations over his desire to buy Greenland.
Gold (XAU/USD) extends its sideways consolidative price move through the Asian session on Tuesday and remains close to the all-time peak touched the previous day amid mixed fundamental cues. The US Dollar (USD) attracts some buyers and recovers a part of the overnight pullback from its highest level since December 9 amid reduced bets for two more interest rate cuts by the Federal Reserve (Fed). Furthermore, civil unrest in Iran seems to have subsided, reducing the likelihood of a US intervention and turning out to be another factor acting as a headwind for the commodity.
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