EUR/USD
The EUR is attempting to stabilize after last week’s rally and pullback, with key fundamentals expected to emerge this week. The ECB’s policy decision is anticipated to maintain a neutral outlook, while yields spreads are recovering, note Shaun Osborne and Eric Theoret from Scotiabank.
GBP/USD
The GBP/USD pair gains momentum to around 1.3685 during the early European session on Tuesday. The Pound Sterling (GBP) gathers strength against the Greenback on the cautiously hawkish stance of the Bank of England (BoE). All eyes will be on the BoE interest rate decision later on Thursday.
USD/JPY
The USD/JPY pair attracts some buyers to around 155.55 during the early Asian session on Tuesday. The upbeat US economic data provides some support to the Greenback against the Japanese Yen (JPY). The Bureau of Labor Statistics (BLS) will not publish the January employment report on Friday as scheduled due to the partial government shutdown.
AUD/USD
The Australian Dollar (AUD) gains ground against the US Dollar (USD) on Tuesday following the Reserve Bank of Australia’s (RBA) decision to raise the Official Cash Rate (OCR) by 25 basis points (bps) to 3.85% from 3.6%. The decision was widely expected by the market.
NZD/USD
The NZD/USD pair shows some resilience below the 0.6000 psychological mark and gains strong positive traction during the Asian session on Tuesday. Spot prices climb to the 0.6040-0.6045 region in the last hour and, for now, seem to have snapped a two-day losing streak amid a modest US Dollar (USD) downtick.
USD/CAD
The USD/CAD pair trades in negative territory near 1.3660 during the early Asian session on Tuesday. Another US government shutdown undermine the US Dollar (USD) against the Canadian Dollar (CAD). Nonetheless, the downside for the pair might be limited amid upbeat US economic data.
USD/CHF
The USD/CHF pair loses traction to near 0.7780 during the early European session on Tuesday. The US Dollar (USD) softens against the Swiss Franc (CHF) as a partial US government shutdown delays Nonfarm Payrolls data and raises concerns over the political stability in the US.
CRUDE OIL
Oil prices fell on Tuesday, easing for a second day, as market participants weighed the possibility of a de-escalation in U.S.-Iran tensions, while a firmer dollar placed greater downside pressure on prices.
Gold (XAU/USD) recovers further from its lowest level since January 6, touched the previous day, and retakes the $4,900 mark during the early European session on Tuesday. The US Dollar (USD) edges lower and moves away from an over one-week high, touched on Monday, and assists the commodity to regain positive traction following a steep decline over the past two days. That said, US President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve (Fed) chair, along with upbeat US ISM Manufacturing PMI released on Monday, could limit deeper USD losses.
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