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.
United States 52-Week Bill Auction up to 3.56% from previous 3.485%
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.
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.
Austan Goolsbee, President of the Federal Reserve (Fed) Bank of Chicago, told AP at the Semafor World Economy conference on Tuesday that the longer the Middle East concerns go, the cut could be pushed out of 2026.
ING’s Chief Economist for Greater China, Lynn Song, notes that China’s March trade surplus dropped to a 13‑month low as exports slowed and imports surged, especially in tech-related categories.
The Euro (EUR) edges higher against the US Dollar (USD) on Tuesday, with EUR/USD extending gains for a seventh consecutive day and returning to levels last seen when the US-Iran conflict began. At the time of writing, the pair is trading around 1.1800, up roughly 0.37% on the day.
Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) is making modest gains versus a softer US Dollar (USD), though it lags core majors and weakens on crosses. They estimate USD/CAD equilibrium at 1.3527, with undervaluation correcting mainly via Dollar softness.
