EUR/USD is battling 1.0700, lacking a clear directional impetus in the early European trading on Tuesday. Traders turn cautious ahead of key data from the Eurozone and the US. Meanwhile, resurgent US Dollar demand is likely to cap the upside attempts in the pair.
GBP/USD edged higher toward 1.2300 in the early European morning on Tuesday. The data from the UK revealed that the ILO Unemployment Rate held steady at 4.2% in three months to September, while wage inflation including bonus declined to 7.9% from 8.2%.
The USD/JPY hovers around 151.70 during the Asian session on Tuesday. The USD/JPY pair holds onto yearly highs, and there’s potential for it to surpass these levels if the US Dollar (USD) successfully halts its recent losses. However, the Greenback is encountering headwinds from the volatile US Treasury yields. The 10-year US bond yield hovers around 4.63% by the press time.
The AUD/USD pair recovers some lost ground but remains capped under the 0.6400 psychological mark during the early Asian session on Tuesday. Markets turn cautious ahead of the US Consumer Price Index (CPI), due later on Tuesday. This event could offer hints about the progress of inflation toward its 2% target. At press time, AUD/USD is trading around 0.6375, losing 0.05% on the day.
NZD/USD continues the losing streak that began on November 6, trading lower around 0.5870 during the Asian session on Tuesday. The New Zealand Dollar (NZD) faces downward pressure, potentially attributed to the Kiwi Food Price Index (FPI) recording a 0.9% (MoM) decline in October.
USD/CAD bids higher around 1.3810 during the Asian session on Tuesday, extending gains for the second successive session. However, the US Dollar (USD) grapples with challenges as it struggles to halt losses. The Greenback could face headwinds from the volatile US bond yields. However, it seems that market participants adopt a cautious stance before US inflation data, which contributes support to underpinning the USD/CAD pair.
The USD/CHF pair remained well-supported above the psychological support of 0.9000 on Tuesday. The Swiss Franc asset is broadly trading sideways as investors await the United States Consumer Price Index (CPI) data for October, which will be published at 13:30 GMT.
Oil prices inched up on Tuesday on expectations of healthy market fundamentals, following an OPEC report saying demand remains strong, and concerns that supplies might be disrupted as the U.S. cracks down on Russian oil exports.
Gold price loses ground around $1,945 ahead of the US CPI data. The geopolitical conflicts in the Middle East could boost safe-haven assets like gold. The immediate resistance level is seen at $1,953; the initial support level will emerge at $1,934.
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