EUR/USD
The Euro (EUR) is up 0.12% to near 1.1395 against the US Dollar (USD) during the early European trading session on Tuesday. The major currency pair rises as the US Dollar corrects ahead of the United States (US) Consumer Price Index (CPI) data for June, which will be published at 12:30 GMT.
GBP/USD
The GBP/USD pair gains ground to around 1.3355 during the early European trading hours on Tuesday. The British Pound (GBP) strengthens against the US Dollar (USD) as traders have ramped up bets that the Bank of England (BoE) will be forced to raise interest rates this year to keep inflation under control.
USD/JPY
The Japanese Yen (JPY) is trimming losses against the US Dollar (USD) on Tuesday, as the USD/JPY pair retreats to the 162.30 area at the European session opening, down from session highs near 162.50. The Yen has drawn some support from a slightly weaker US Dollar, but remains close to the 40-year low of 162.84.
AUD/USD
The AUD/USD pair trades with mild losses around 0.6915 during the early Asian session on Tuesday. Ongoing geopolitical tensions in the Middle East continue to boost a safe-haven currency such as the US Dollar (USD) against the Australian Dollar (AUD). All eyes will be on the US June Consumer Price Index (CPI) inflation data, which is due later on Tuesday.
NZD/USD
The NZD/USD pair attracts some dip-buyers during the Asian session on Tuesday, stalling the previous day’s retracement slide from the vicinity of the 0.5800 mark or the monthly peak touched last week. Spot prices climb to the 0.5780 area in the last hour in the wake of Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway’s hawkish remarks.
USD/CAD
USD/CAD continues its losing streak after remaining flat in the previous day, trading around 1.4150 during the Asian hours on Tuesday. The pair depreciates as the commodity-linked Canadian Dollar (CAD) receives support from higher oil prices. It is important to note that Canada is the largest crude exporter to the United States (US).
USD/CHF
USD/CHF declines after two days of gains, trading around 0.8140 during the Asian hours on Tuesday. Traders will likely observe the Swiss Producer and Import Prices data for June due later in the day.
CRUDE OIL
Oil prices rose nearly 3% on Tuesday to their highest in four weeks, as the U.S. reimposed its naval blockade of Iran while the two countries stepped up attacks in the Strait of Hormuz, heightening uncertainty about energy flows.
Gold (XAU/USD) recovers further from a nearly two-week low, touched earlier this Tuesday, and climbs above the $4,030 level heading into the European session. The US Dollar (USD) pauses following a strong two-day rally as bulls turn cautious ahead of US consumer inflation figures and Federal Reserve (Fed) Chair Kevin Warsh’s testimony. This, in turn, is seen as a key factor that helps the precious metal to reverse a part of the previous day’s heavy losses. However, escalating US-Iran tensions and firming Fed rate-hike expectations favor the USD bulls, warranting some caution before positioning for any further appreciating move for the yellow metal.
Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.
