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.
The GBP/USD pair is down 0.3% to near 1.3570 during the European trading session on Tuesday. The Cable faces selling pressure as the US Dollar (USD) outperforms its peers due to a risk-off market mood.
The EUR/GBP cross gains traction near 0.8665 during the early European session on Tuesday. The British Pound (GBP) weakens against the Euro (EUR) amid political instability in the United Kingdom (UK). Traders brace for the ZEW surveys from Germany and the Eurozone, which are due later on Tuesday.
