EUR/USD is posting small gains above 1.0700, finding support from a broad US Dollar weakness and hawkish ECB expectations ahead of the mid-tier EU data this Tuesday. Cautious market mood and disappointing German Factory Orders limit the upside in the major.
GBP/USD started the week off by dropping below 1.24, approaching a two-month low of 1.2306 reached on May 25th, as investors perceive a narrowing interest rate gap between the US and the UK. However, the Pound recovered those losses on the back of the weaker US dollar and data that put the Fed back into the spotlight on a dovish tip.
USD/JPY drops for the second consecutive day to around 139.40 as Tokyo opens for Tuesday’s trading. In doing so, the Yen pair fails to justify downbeat Japan data while tracing softer United States Treasury bond yields amid a sluggish Asian session.
AUD/USD is advancing toward 0.6700, picking up fresh bids on the hawkish surprise delivered by the RBA at its June policy meeting. The RBA hiked rates by another 25 bps to 4.10%, citing that some additional tightening may be needed. Focus shifts to RBA Lowe’s speech.
NZD/USD stays on the buyer’s radar amid the unimpressive Asian session on Tuesday, mildly bid near 0.6080 by the press time. In doing so, the Kiwi pair cheers upbeat data at home and the risk-positive headlines surrounding the US-China ties, as well as the downbeat US data. However, a lack of major data/events and a cautious mood ahead of the Reserve Bank of Australia (RBA) Monetary Policy Meeting keeps the traders on the dicey floor of late.
USD/CAD reverses the week-start rebound while refreshing intraday low near 1.3410 heading into Tuesday’s European session. In doing so, the Loonie pair fails to justify sluggish Oil price but cheers downbeat US Dollar and cautiously optimistic sentiment.
USD/CHF extends the previous day’s losses around 0.9050 amid early Tuesday morning in Europe. That said, a broad US Dollar weakness allows the Swiss Franc (CHF) pair to please sellers for the second consecutive day. In doing so, the quote justifies the upbeat inflation numbers from Switzerland.
Oil prices crept lower in Asian trade on Tuesday as initial optimism over more supply cuts by Saudi Arabia and the OPEC was largely offset by persistent concerns over slowing economic growth and weakening demand.
Gold price aptly portrays the sluggish markets heading into Tuesday’s European session, after an indecisive week. The XAU/USD highlights a lack of major data/events on the economic calendar, as well as mixed concerns about the Federal Reserve’s (Fed) moves and the diplomatic ties between the US and China.
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