EUR/USD
United Overseas Bank’s (UOB) Quek Ser Leang sees EUR/USD retaining a mild downside bias after slipping below a prior strong support at 1.1405. Intraday losses are expected to be limited to tests of 1.1390, with resistance at 1.1430–1.1445. Over the coming weeks, the pair is now viewed as range-trading between 1.1360 and 1.1465, with 1.1210 the next target if key supports fail.
GBP/USD
The British Pound (GBP) snaps a three-day losing streak against the Japanese Yen (JPY), rebounding to near 218.55 during the European trading session on Tuesday. The cross attracts bids after the release of the United Kingdom (UK) labor market data for the three months ending May.
USD/JPY
The Japanese Yen (JPY) trades flat against the US Dollar (USD) at around 162.50 during the Asian trading session on Tuesday, closer to its multi-decade high of 162.84. The USD/JPY pair will likely remain sideways as investors seek fresh cues regarding whether the United States (US) and Iran will announce a ceasefire or will continue exchanging attacks.
AUD/USD
The AUD/USD pair drifts higher to near 0.7010 during the Asian trading hours on Tuesday. However, the potential upside for the pair might be limited amid the escalation of the US-Iran conflict. The Australian employment report will take center stage later on Thursday.
NZD/USD
The NZD/USD pair attracts some buyers to around 0.5865 during the early Asian trading hours on Tuesday. The New Zealand Dollar (NZD) edges higher against the US Dollar (USD) following hotter New Zealand inflation data. Traders brace for the release of the US ADP Employment report, which is due later in the day.
USD/CAD
The USD/CAD pair is seen buying on the previous day’s solid rebound from the 1.4000 psychological mark, or its lowest level since June 17, and gaining positive traction for the second straight day on Tuesday. Spot prices climbed to a one-week high, around the 1.4085 region, during the Asian session, though the mixed fundamental backdrop warrants some caution for aggressive bulls.
USD/CHF
USD/CHF extends its gains for the second successive day, trading around 0.8110 during the Asian hours on Tuesday. The pair appreciates as the US Dollar (USD) receives support from rising safe-haven demand amid ongoing hostilities between the United States (US) and Iran, which drove oil prices higher, reviving concerns about inflation and interest rate hikes.
CRUDE OIL
Oil prices softened on Tuesday, with markets weighing reports of mediation efforts between the U.S. and Iran against an exchange of fresh attacks between the two and threats of a naval blockade of Saudi Arabia by Yemen’s Houthis.
Gold (XAU/USD) builds on Asian session gains and spikes to a multi-day high above the $4,050 level in the last hour, though the upside seems limited. Despite a cycle of tit-for-tat strikes between the US and Iran, US Secretary of State Marco Rubio said on Sunday that the US was still open to holding talks with Iran, keeping hopes alive for a potential diplomatic resolution to the conflict. This holds back the US Dollar (USD) bulls from placing fresh bets, which, in turn, is seen as a key factor supporting the commodity.
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