EUR/USD is nearing 1.0900, declining for the fourth consecutive day early Tuesday. Resurgent US Dollar demand is undermining the pair, as Middle East geopolitical tensions scale up. The Euro shrugs off the hawkish ECB chorus. German ZEW survey awaited.
GBP/USD is keeping losses below 1.2700 after the mixed UK employment data on Tuesday. The Pound Sterling is losing ground against the US Dollar on risk aversion, which could be attributed to the escalating Middle East geopolitical risks.
The USD/JPY pair holds positive ground below the 146.00 barrier during the early Asian session on Tuesday. The uptick of the pair is bolstered by the stronger US Dollar (USD) broadly. Investors await the US NY Empire State Manufacturing Index on Tuesday for fresh impetus, which is expected to show a decrease of 5 in January from a 14.5 fall in the previous reading. At press time, USD/JPY is trading at 145.90, gaining 0.08% on the day.
The AUD/USD pair extends its downside above the mid-0.6600s during the early Asian session on Tuesday. The risk-off tone across markets lifts the safe-haven US Dollar (USD) and weighs on the pair. At press time, AUD/USD is trading at 0.6660, up 0.02% on the day.
The NZD/USD pair drops to near 0.6160 during the early European trading hours on Tuesday. The downtick of the pair is driven by the stronger US Dollar (USD) amid the risk-off environment and the rising Middle East tension. Meanwhile, the US Dollar Index (DXY) rises to a multi-week high near 102.90.
The US Dollar is staging a comeback on Monday’s European session. The sourer market sentiment, with equity markets dipping to negative territory after a positive opening, and the lower oil prices are pushing the pair higher. Investors seem to have digested the weaker-then-expected US PPI data seen on Friday, with the Greenback building up in a light trading session.
USD/CHF stays calm after gaining profits in the previous session, hovering near 0.8520 during the Asian session. The US Dollar is going through a moderate recovery against the Swiss Franc on Monday. The Dollar Index is trimming some losses, favoured by the sourer market sentiment although it remains trapped within previous ranges.
Oil prices were mixed on Tuesday, after posting losses the previous session, as broad economic concerns outweighed continued tensions in the Middle East that led to more tanker diversions.
Gold price snapped a three-day winning streak, trading lower near $2,050 per troy ounce during the early European session on Tuesday. The prices of the precious metal face downward pressure as US Dollar (USD) improves on the back of upbeat US bond yields.
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