EUR/USD edges higher to near 1.0890 during the early European session on Tuesday. The pair consolidates due to the uncertainty over the uncertainty over the timing of a potential interest rate cut by the European Central Bank (ECB).
GBP/USD moves on an upward trajectory for the second successive session on Tuesday, inching higher to near 1.2740. The expectations of a status quo in the BoE’s monetary policy contribute to the positive performance of the Pound Sterling, which underpins the pair.
The USD/JPY pair trades in negative territory for the third consecutive day during the early Asian session on Tuesday. The consolidation of the Greenback and US yields weighs on the USD/JPY ahead of the key event. Market players will closely monitor the Bank of Japan (BoJ) monetary policy meeting on Tuesday. The pair currently trades around 148.08, up 0.03% on the day.
The AUD/USD extends its losses for the second straight day as Tuesday’s Asian session begins, with the pair sliding 0.02%, which added to Monday’s 0.39%, sums a total 0.41% loss in the week. At the time if writing, the pair exchanges hands at 0.6568, after hitting a weekly high of 0.6570.
The NZD/USD pair posts modest gains above the mid-0.6000s during the early Asian trading hours on Tuesday. The upside of the pair remains capped as investors remain concerned about a potential downturn in the property sector, a slowing economy, and subdued investor sentiment in China. NZD/USD currently trades near 0.6077, up 0.03% for the day.
USD/CAD attempts to retrace its recent gains on the back of the improved Crude oil prices. The USD/CAD pair trades near 1.3480 during the Asian session on Tuesday. The Canadian Dollar (CAD) experienced losses against the US Dollar (USD) in the previous session, which could be attributed to the risk aversion sentiment over the escalated geopolitical situation in the Middle East.
USD/CHF snaps its winning streak that began on January 11, edging lower to near 0.8670 during the Asian session on Tuesday. The US Dollar (USD) faces the challenge of lower US Treasury yields. The 2-year and 10-year yields on US bond coupons stand at 4.38% and 4.09%, respectively, at the time of writing.
Oil prices were little changed on Tuesday as traders weighed a host of conflicting supply and demand worries, with rising tensions in the Middle East and cold weather woes disrupting production in the United States.
Gold price attracts some dip-buying on Tuesday and recovers a major part of the overnight modest losses. Geopolitical tensions in the Middle East, along with concerns over China’s weak economic recovery, lend some support to the safe-haven precious metal.
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