EUR/USD remains depressed at 10-week low surrounding the 1.0700 threshold heading into Tuesday’s European session. The Euro pair stays on the back foot for six days in a row amid hawkish Federal Reserve (Fed), as well as doubts about the European Central Bank’s (ECB) capacity to lift the rates further.
The GBP/USD pair has rebounded after defending its downside near the crucial mark around 1.2340 in the early European session. The Cable has shown recovery as the US Dollar index (DXY) has faced pressure while attempting to refresh its day’s high above 104.33.
The USD/JPY pair has slipped vertically to near 140.00 in the Asian session. The downside move in the asset is backed by a sheer sell-off in the US Dollar Index (DXY). Investors have trimmed longs in the USD/JPY pair as a raise approval for the US debt-ceiling has trimmed appeal for the USD index and deep discussions about tweaking Bank of Japan’s (BoJ) Yield Curve Control (YCC) are providing strength to the Japanese Yen.
The AUD/USD pair has jumped to near 0.6550 after a volatile action, which was inspired by the sheer gyration in the US Dollar Index (DXY) in the Asian session. The Aussie asset is expected to remain in action ahead amid the release of the Australian monthly Consumer Price Index (CPI) (April) data, which is scheduled for Wednesday.
The NZD/USD pair is demonstrating a sideways performance above 0.6060 in the early Asian session. The Kiwi asset is expected to come out of the woods and display a sheer volatile action as United States markets will open today after an extended weekend.
The USD/CAD pair is juggling in a narrow range below the 1.3600 mark in the early Tokyo session. The Loonie asset is expected to display a power-pack action as investors would remain highly active after an extended weekend.
USD/CHF drops for the third consecutive day after refreshing a multi-week high as it prints mild losses around 0.9035 amid early Tuesday morning in Europe. Swiss Franc (CHF) buyers cheer the broad US Dollar pullback amid mildly upbeat sentiment. Also likely to have favored the pair sellers could be the consolidation ahead of today’s key Swiss Gross Domestic Product (GDP) data for the first quarter (Q1) of 2023, as well as the US Conference Board’s (CB) Consumer Confidence for May.
Oil prices reversed early gains to trade lower on Tuesday as fears of more interest rate hikes by the Federal Reserve and slowing economic growth largely offset optimism over raising the U.S. debt ceiling.
Gold price witnessed extreme selling pressure after a short-lived pullback move to near $1,946.70 in the Asian session. The precious metal has extended its downside journey to near $1,940.00 as the US Dollar Index (DXY) has recovered its entire losses and is aiming to print afresh day high above 104.34.
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