EUR/USD
EUR/USD is expected to continue its upward trajectory, closing at 1.1879. The report notes that while there is scope for further gains, the major resistance at 1.1920 is likely out of reach for now. The next support levels are identified at 1.1855 and 1.1830. UOB Group Senior Technical Strategist Quek Ser Leang and Economist Lee Sue Ann notes..
GBP/USD
GBP/USD caught a halting bullish step higher to open the new trading week, knocking on the 1.3700 handle for the first time since September. The Trump administration threatened additional tariffs on a number of European nations if they don’t give over control of Greenland to the US, but markets continue to bank on the usual turnaround on trade war rhetoric from the White House.
USD/JPY
The Japanese Yen (JPY) remains on the defensive through the Asian session on Tuesday amid concerns about Japan’s fiscal health on the back of Prime Minister Sanae Takaichi’s aggressive spending and tax cut plans. Apart from this, a generally positive risk tone is seen undermining the safe-haven JPY amid domestic political uncertainty ahead of a snap election on February 8. This, along with a modest US Dollar (USD) uptick, assists the USD/JPY pair in moving away from its lowest level since November 2025, touched on Monday.
AUD/USD
AUD/USD holds near its 16-month high of 0.6940, reached in the previous session, currently trading around 0.6920 during the Asian hours on Tuesday. Traders now await the December Consumer Price Index (CPI) data due Wednesday for further clues on the Reserve Bank of Australia’s (RBA) policy outlook.
NZD/USD
The NZD/USD pair extends the overnight pullback from the 0.6000 psychological mark, or a four-month high, and drifts lower during the Asian session on Tuesday. Spot prices, for now, seem to have snapped a seven-day winning streak and currently trade just above mid-0.5900s, down nearly 0.25% for the day.
USD/CAD
The USD/CAD pair trades with mild gains near 1.3720 during the Asian trading hours on Tuesday. However, the upside for the pair might be limited, as the Federal Reserve (Fed) uncertainty and worries about another US government shutdown could exert some selling pressure on the US Dollar (USD) against the Canadian Dollar (CAD). The Fed and Bank of Canada (BoC) interest rate decisions will be the highlights later on Wednesday.
USD/CHF
USD/CHF trades around 0.7760 on Tueday at the time of writing, down 0.70% on the day and marking its lowest level since September 2011. The pair remains under heavy pressure as the US Dollar (USD) weakens on intervention rumors in foreign exchange markets and growing concerns over the independence of US monetary policy.
CRUDE OIL
Oil prices fell on Tuesday as investors kept an eye on a resumption in supply from Kazakhstan, but price declines were limited as a massive winter storm hit crude production and affected refineries on the U.S. Gulf Coast.
Gold (XAU/USD) attracts fresh buyers following the overnight modest pullback from the record high, though it remains below the $5,100 mark through the Asian session on Tuesday. Mounting global tensions, along with strong central bank buying and retail demand, continue to offer support to the precious metal. Adding to this, persistent geopolitical uncertainties turn out to be another factor that underpins the safe-haven precious metal, which seems unaffected by a generally positive risk tone.
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