Scotiabank strategists Shaun Osborne and Eric Theoret report the Japanese Yen (JPY) is slightly firmer, outperforming G10 peers despite broad US Dollar (USD) strength, as stronger PMIs signal improving growth. They see signs of exhaustion in USD/JPY’s advance with yield spreads stabilizing.
West Texas Intermediate (WTI) US Oil declines by more than 1% on Tuesday and trades around $73.00 at the time of writing, pressured as traders continue to assess diplomatic developments between the United States (US) and Iran.
EUR/GBP trades little changed on Tuesday after a sharp slide the previous day, triggered by UK Prime Minister Keir Starmer's resignation, which lifted the British Pound (GBP) across the board.
The USD/JPY pair is trading in a neutral zone on Tuesday as investors digest the latest United States (US) Purchasing Managers Index (PMI) figures and recent ADP employment data, awaiting a stronger catalyst from Federal Reserve (Fed) commentary.
The Pound Sterling (GBP) dives over 0.40% on Tuesday as risk appetite shifts sour, as the recently sworn-in MP Andy Burnham prepares to succeed Prime Minister Keir Starmer, who lasted two years at the job. At the time of writing, GBP/USD trades at 1.3195, after reaching a daily high of 1.3257.
TD Securities strategist Prashant Newnaha notes that softer S&P Australia Flash Composite PMI data, including weaker new orders and moderating price pressures, supports the Reserve Bank of Australia keeping its cash rate unchanged at 4.35% in August.
Gold (XAU/USD) trades on the back foot on Tuesday, pressured by a stronger US Dollar (USD) and rising expectations that the Federal Reserve (Fed) could raise interest rates later this year.
Rabobank’s energy strategists Joe DeLaura and Florence Schmit cut TTF Natural Gas forecasts on easing supply risks from the Strait of Hormuz reopening.
The Euro (EUR) extends losses against the US Dollar (USD) on Tuesday, with EUR/USD slipping below the 1.1400 mark, a support level that had held since June 2025.
USD/CAD trades around 1.4190 on Tuesday at the time of writing, up 0.25% on the day and extending a four-day winning streak to its highest level since April 7.
Nomura strategists note Euro area business activity stayed in contraction in June, with the composite PMI at 49.5 despite a small rise.
Scotiabank strategists Shaun Osborne and Eric Theoret note the British Pound (GBP) is softer versus the US Dollar (USD) after mildly disappointing Purchasing Managers' Index (PMI) and CBI data, with market reaction muted.
