USD/CAD trades around 1.3990 on Tuesday at the time of writing, little changed on the day as markets adopt a cautious stance ahead of the Federal Reserve’s (Fed) monetary policy decision.
EUR/USD has gone almost nowhere since the weekend's deal headlines, and Tuesday was more of the same: a dip that held above 1.1550, a grind back to the 1.1600 handle, and a hard stall at the 200-day Exponential Moving Average (EMA) sitting just overhead.
The USD/JPY pair rose slightly around the intervention zone of 160.40 on Tuesday, as the Japanese Yen (JPY) struggles to gain strong traction even after the Bank of Japan (BoJ) raised interest rates to their highest level in more than three decades.
Gold (XAU/USD) holds above the $4,300 mark on Tuesday as traders await further details on the peace framework between the United States (US) and Iran. At the time of writing, XAU/USD trades around $4,325, after retreating from an intraday high of $4,355.
The Dow Jones Industrial Average pushed to a fresh all-time high near 52,100 on Tuesday, capping a two-day surge that is almost entirely about one thing: the apparent end of the war in Iran.
The Pound Sterling (GBP) holds firm above the 1.3400 level on Tuesday as the US Dollar (USD) recovers some ground, even as geopolitical tensions ease following the US-Iran peace agreement. At the time of writing, the GBP/USD pair trades with minimal losses of 0.03%
The Australian Dollar (AUD) strengthens against the US Dollar (USD) on Tuesday after the Reserve Bank of Australia (RBA) delivered a hawkish hold at its June policy meeting. At the time of writing, AUD/USD trades around 0.7070 after bouncing from an intraday low of 0.7042.
Silver (XAG/USD) advances on Tuesday and trades around $70.45 at the time of writing, up 0.60% on the day. The white metal extends its rebound as investors adjust positions ahead of the Federal Reserve's (Fed) monetary policy decision due on Wednesday.
National Bank of Canada (NBC) argues that Euro upside against the Dollar is likely to be limited, as relative growth and interest rate differentials still favor the United States.
GBP/JPY rebounds after a short-lived pullback on Tuesday as traders digest the Bank of Japan's (BoJ) decision to raise interest rates. At the time of writing, the cross is trading around 215.10, recovering from an intraday low of 214.53.
BNY’s Bob Savage notes that the Bank of Japan delivered a hawkish 25bp rate hike to 1.0% and will continue scaling back its JGB purchase program. The BoJ signaled confidence in underlying inflation despite slowing headline CPI.
OCBC’s Sim Moh Siong argues that recent risk-on moves following the US‑Iran understanding have only produced a modest pullback in US yields and the Dollar. He highlights AI-driven US growth, Fed event risk and Oil dynamics as supporting USD resilience.
BNY’s Bob Savage highlights that the Reserve Bank of Australia kept its cash rate unchanged at 4.35% but maintained a clear tightening bias. The Australian central bank emphasized that further rate hikes remain possible if inflation pressures persist.
Rabobank’s FX Strategy team notes that USD/JPY is little changed after the latest BoJ meeting, with markets more focused on the upcoming Fed decision and new Fed President Warsh.
National Bank of Canada (NBC) expects USD/CAD to remain broadly range-bound, with recent moves reflecting shifting expectations for Federal Reserve and Bank of Canada policy.
US President Donald Trump on Tuesday outlined the next steps in the Iran agreement, saying the deal's text will be released in the coming days and that the Strait of Hormuz should be fully reopened by Friday.
The Japanese Yen (JPY) remains anchored around the critical 160.00 threshold against the US Dollar despite the Bank of Japan's (BoJ) historic decision to raise its benchmark interest rate to 1.00%.
Private-sector hiring in the US has cooled in late May. According to the NER Pulse, the weekly companion to the ADP National Employment Report, companies added an average of 25.5K jobs per week in the four weeks ending May 30.
Societe Generale analysts, including Kenneth Broux, note AUD/USD is under pressure after failing to hold its 50‑day moving average and forming a pattern of lower highs and lows.
The US Dollar (USD) posts marginal losses against the Swiss Franc (CHF) on Tuesday, with bears aiming for a key support area between 0.7900 and 0.7930.
UOB’s Quek Ser Leang reports that USD/JPY was little changed around 160.30, with recent price action offering no fresh directional clues.
Societe Generale strategists argue that South African Rand dynamics hinge on upcoming CPI, retail sales and the Federal Reserve meeting.
OCBC’s Christopher Wong describes USD/PHP as bearish but oversold after a sharp gap lower on softer yields and Oil. With inflation still above target and growth slowing, Bangko Sentral ng Pilipinas (BSP) faces a difficult decision, where a firmer policy response could support PHP.
Societe Generale’s Stephen Spratt notes that the Reserve Bank of Australia kept rates unchanged at 4.35%, in line with expectations, and characterizes the statement as largely a mark-to-market update.
Demand for Gold by global central banks is anticipated to remain strong this year despite bullion prices rising over 120% in the last two years, data from the World Gold Council (WGC) published on Tuesday shows.
Brown Brothers Harriman’s Elias Haddad highlights a muted reaction in USD/JPY to the Bank of Japan’s 25 bps hike to 1.00%, even as JGB yields underperform and the BOJ maintains its tightening bias and JGB tapering roadmap.
Crude Oil depreciates further on Tuesday, as the first details of the US-Iran deal start to emerge and hopes of the reopening of the key Strait of Hormuz grow.
The Indian Rupee (INR) reflects strength against the US Dollar (USD) on Tuesday.
Brown Brothers Harriman’s Elias Haddad reports that AUD/USD has retraced part of its US-Iran peace agreement rally after the Reserve Bank of Australia left rates unchanged at 4.35%.
United States (US) President Donald Trump said during the European trading session on Tuesday that psychologically, we want to get Iran’s enriched uranium.
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