The Pound Sterling (GBP) advances on Tuesday as traders remain optimistic about a possible resolution to the US-Iran conflict. At the same time, the US Dollar (USD) weakens amid a hot US inflation report that missed forecasts of a higher print.
The USD/JPY pair is trading with a bearish bias near the 158.90 region on Tuesday, extending recent losses as the US Dollar (USD) continues to soften amid improving risk sentiment on renewed hopes of United States (US)-Iran negotiations.
MUFG’s Senior Currency Analyst Michael Wan highlights that Trump has begun a US naval blockade of the Strait of Hormuz, but risk assets have rebounded as talks between the US and Iran continue.
Christine Lagarde, President of the European Central Bank (ECB), spoke to Bloomberg TV on Tuesday. She claimed that they need to keep an eye on the medium term while checking data.
USD/CAD trims some of its earlier losses on Tuesday as easing Oil prices on renewed US-Iran talks optimism weigh on the commodity-linked Canadian Dollar (CAD), helping the pair recover from intraday lows even as improving risk sentiment keeps the US Dollar (USD) under broad pressure.
US Treasury Secretary Scott Bessent crossed the wires on Tuesday, stating that he’s “quite confident” that core prices would continue to edge lower in the US despite the Iran war, and that he’s pressing the Federal Reserve (Fed) to cut rates.
Silver (XAG/USD) surges on Tuesday, trading around $78.80 at the time of writing, up 4.16% on the day as strong buying interest pushed Silver to a daily high of $79.32.
United States 52-Week Bill Auction up to 3.56% from previous 3.485%
Scotiabank notes the Pound is up 0.3% versus the Dollar, trading at pre‑conflict highs as investors welcome strong demand for UK debt. Domestic data risk is light before trade and industrial production, while BoE speakers, including Gov. Bailey, pose event risk.
Megan Greene, external member of the Bank of England's (BoE) Monetary Policy Committee (MPC), Reuters reported on Tuesday that the United Kingdom’s (UK) economic activity was weak before the Iran war but that at the same time, the war impact is inflationary.
Gold (XAU/USD) trades with a positive bias on Tuesday, supported by a softer US Dollar (USD) as investors react to renewed optimism surrounding potential US-Iran negotiations.
Kevin Hassett, Senior Adviser for the White House told Fox Business on Tuesday that they expect a rapid reduction in energy prices once the Strait of Hormuz is reopened.
