The GBP/JPY cross struggles to capitalize on the previous day's bounce from the 100-day Simple Moving Average (SMA) and attracts heavy intraday selling on Tuesday.
NZD/USD extends its losses for the second successive day, trading around 0.5940 during the early European hours on Tuesday. The pair depreciates as the US Dollar (USD) strengthens on the back of renewed United States (US)-Iran tensions.
US Treasury Secretary Scott Bessent said during the European trading session on Tuesday that he and Japan’s Prime Minister (PM) Sanae Takaichi both believe that forex volatility is undesirable.
Rabobank's Senior Market Strategist Benjamin Picton notes that Brent and WTI have reacted only modestly to renewed United States (US)-Iran tensions, with Brent holding near $105 and WTI below $100.
BNY strategists John Velis and David Tam argue that resilient United States (US) data and likely elevated inflation prints make it harder to justify Federal Reserve (Fed) rate cuts this year.
Danske Bank analysts note that global equities finished slightly higher, with major United States (US) indices such as the S&P500, Nasdaq and Russell2000 posting modest gains.
ING’s Commodities Strategist Ewa Manthey explains why Gold has dropped about 12% since the Iran conflict began, despite its reputation as a safe haven. She argues the move reflects macro headwinds from higher Oil prices, stronger US Dollar (USD) and elevated real yields.
Silver (XAG/USD) accelerates its reversal in the early European session on Tuesday, trading at $84.80 at the time of writing, after rejection at two-month highs right above $87.00 earlier in the day.
Switzerland Producer and Import Prices (YoY) rose from previous -2.7% to -2% in April
MUFG’s Lloyd Chan flags India’s April Consumer Price Index (CPI) release as a key risk for the Indian Rupee (INR), with higher energy prices and a softer currency building inflation tailwinds.
Switzerland Producer and Import Prices (MoM) came in at 0.8%, above forecasts (0.1%) in April
TD Securities economists diverge from consensus by expecting the European Central Bank (ECB) to hold rates in June. They stress the absence of clear second-round effects, anchored inflation expectations, and softening confidence and growth.
