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.
United States (US) Treasury Secretary Scott Bessent confirmed through a post on X, formerly known as Twitter, that the US and Japan took some actions together against excessive volatility in currency markets.
Commerzbank analysts note the US Dollar Index (DXY) inched up to 97.96 as markets consolidated and prepared for United States (US) Consumer Price Index (CPI).
UOB strategists Quek Ser Leang and Lee Sue Ann note AUD/USD gapped down to 0.7205 before rebounding to close near 0.7250, with intraday risks skewed toward a retest of 0.7220 while 0.7205 is expected to hold. Over 1–3 weeks, they see scope for the pair to edge higher but capped below 0.7280.
Germany Consumer Price Index (MoM) in line with forecasts (0.6%) in April
Germany Harmonized Index of Consumer Prices (YoY) meets expectations (2.9%) in April
Germany Harmonized Index of Consumer Prices (MoM) meets forecasts (0.5%) in April
Germany Consumer Price Index (YoY) meets forecasts (2.9%) in April
West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $95.80 during the Asian hours on Tuesday. Crude oil prices are surging as Middle East tensions are threatening the world’s most critical energy transit route.
The Australian Dollar (AUD) trades cautiously against its major currency peers, is 0.23% down to near 0.7230 against the US Dollar (USD), during the late Asian trading session on Tuesday. The antipodean will likely remain volatile ahead of the Australian Budget release for 2026 at 09:30 GMT.
Asian stock markets trade mixed on Tuesday as investors remain on edge amid fading hopes for a US-Iran peace deal and de-escalation of tensions in the Middle East.
