European Commission President Ursula von der Leyen said on Tuesday that trade talks between the European Union (EU) and the United States (US) are complex but added that they are advancing.
The GBP/USD tumbled below the 1.3500 figure for the first time in the week, down over 0.39%, as tensions in the Middle East remained high, with news sources revealing that the United States (US) is weighing whether to join Israel in its confrontation with Iran.
European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Tuesday that they are in a good position on interest rate policy but noted that there is now more uncertainty following the Iran-Israel conflict.
The Euro (EUR) weakens against the US Dollar (USD) on Tuesday, with the EUR/USD pair drifting lower as traders digest a steady Greenback despite disappointing Retail Sales and Industrial Production data and ongoing geopolitical tensions stemming from the Iran-Israel conflict.
Industrial Production in the United States (US) contracted by 0.2% on a monthly basis in May, the data published by the Federal Reserve showed on Tuesday. This reading followed the 0.1% growth recorded in April and came in worse than the market expectation for an expansion of 0.1%.
The Indian Rupee (INR) weakens against the US Dollar (USD) on Tuesday, giving up Monday’s modest rebound as heightened geopolitical tensions in the Middle East, stronger Crude Oil prices, and a resilient Greenback dampen sentiment ahead of the Federal Reserve’s (Fed) key interest rate decision.
Retail Sales in the United States (US) declined by 0.9% in May to $715.4 billion, the US Census Bureau announced on Tuesday. This reading followed the 0.1% decrease (revised from +0.1%) recorded in April and came in worse than the market expectation for a contraction of 0.7%.
Japanese Yen (JPY) is entering Tuesday’s NA session unchanged vs. the US Dollar (USD), having faded its marginal BoJ-driven gain following the central bank’s policy decision, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
Pound Sterling (GBP) is soft, down a modest 0.2% vs. the US Dollar (USD) but underperforming all of the G10 currencies in relatively quiet trade, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
Euro (EUR) is quietly trading within an incredibly tight range, consolidating in the mid-1.15s just below its recent multi-year highs, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
Gold price (XAU/USD) trades 0.4% higher to near $3,400 during European trading hours on Tuesday. The yellow metal edges up as demand for safe-haven assets remains firm amid conflicts in the Middle East.
The Canadian Dollar (CAD) is a mild outperformer on the session, catching a modest bid alongside the Australian Dollar (AUD) and New Zealand Dollar (NZD), Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
The Australian Dollar (AUD) edges higher against the US Dollar (USD) on Tuesday, with the AUD/USD pair holding comfortably within Monday’s trading range.
US Dollar (USD) is likely to trade in a range between 7.1750 and 7.1950 against the Chinese Yuan (CNH). USD traded in a quiet manner last Friday. USD has likely moved into a 7.1620/7.2200 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Last night, Republican senators presented their version of the 'Big Beautiful Bill', which includes a number of changes. The proposed changes to Section 899 are likely to be particularly relevant for the US Dollar (USD), Commerzbank's FX analyst Michael Pfister notes.
There is a chance for US Dollar (USD) to rise above 145.00 against Japanese Yen (JPY); the major resistance at 145.50 is unlikely to come under threat. In the longer run, USD is likely to trade in a range between 143.00 and 145.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
European natural Gas prices rose to their highest level since early April on Monday, after jumping by 4.8% last Friday, ING's commodity experts Ewa Manthey and Warren Patterson note.
In the latest post on his social media platform on Tuesday, Truth Social, US President Donald Trump said: "I have not reached out to Iran for “Peace Talks” in any way, shape, or form. This is just more HIGHLY FABRICATED, FAKE NEWS! If they want to talk, they know how to reach me.
The Pound extended its reversal from Monday’s high at 196.85 after the Bank of Japan released its monetary policy decision on Tuesday, but, so far, the pair has remained steady above last week’s highs at 196.00.
Oil prices are rising again after President Donald Trump called for the evacuation of Tehran, ING's commodity experts Ewa Manthey and Warren Patterson note.
New Zealand Dollar (NZD) is likely to consolidate in a range of 0.6025/0.6085. In the longer run, upward momentum is increasing, but NZD must first close above 0.6095 before a move to 0.6135 can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The S&P 500 is testing the resilience of its uptrend after rebounding from a key support level near 5960pts, with momentum indicators suggesting caution, Société Générale's FX analysts note.
US Dollar (USD) continued to trade near recent lows as markets navigate higher oil prices owing to geopolitical tensions, tariff uncertainties and central bank meetings this week. Dollar Index (DXY) was last at 98.17 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
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