EUR/USD struggles to gain momentum and holds near the 1.1000 barrier on Tuesday. The pair remains under pressure as investors stay cautious ahead of Thursday’s US inflation data release, underpinning the safe-haven demand for the US Dollar.
GBP/USD is holding lower ground near 1.2750 in the European morning this Tuesday. The pair justifies downbeat UK consumer spending data while the Greenback cheers a risk-off mood heading toward the Chinese and US inflation data releases later this week.
USD/JPY remains on the front foot for the second consecutive day as it takes the bids to refresh intraday high near 143.40 during early Tuesday. In doing so, the Yen pair justifies the market’s latest dovish concerns about the Bank of Japan (BoJ), backed by downbeat Japan real wage data for June. With this, the risk-barometer pair ignores sluggish yields as the US Dollar extends the previous day’s recovery amid cautious optimism in the markets.
AUD/USD drops towards 0.6500 as it prints the first daily loss in four around 0.6550 amid early Tuesday morning in Europe. In doing so, the Aussie pair struggles to justify mixed Australian and China data while tracing the firmer US Dollar to keep the bears on the table.
The NZD/USD pair struggles to capitalize on its modest gains registered over the past two trading days and meets with a fresh supply during the Asian session on Tuesday. Spot prices, however, manage to recover a few pips from the daily low touched in the last hour and currently trade just below the 0.6100 mark, still down nearly 0.30% for the day.
The Canadian Dollar (CAD) continues to be weighed down by the disappointing release of the domestic jobs report on Friday, which reaffirmed expectations that the Bank of Canada (BoC) will pause its interest rate hike campaign. Furthermore, Crude Oil prices remain depressed for the second successive day below a nearly four-month top touched on Monday and turn out to be another factor undermining the commodity-linked Loonie. This, along with a modest pickup in the US Dollar (USD) demand, is seen acting as a tailwind for the USD/CAD pair.
The USD/CHF pair holds modest gains during the early Asian session on Monday. The pair currently trades around 0.8738, up 0.11% for the day. Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD against six other major currencies, surges above 102.18 while investors await US inflation data for fresh impetus.
Oil prices were little changed on Tuesday after China reported a sharp monthly drop in imports in July, which reinforced demand fears, though that was offset by supply concerns from Saudi Arabian and Russian output cuts.
Gold price stays bearish for the second consecutive day amid sour sentiment, firmer US Dollar. US Dollar ignores mixed Fed talks while preparing for Thursday’s US inflation. China inflicted pessimism, cautious mood ahead of top-tier data/events also weigh on the Gold Price.
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