The International Monetary Fund (IMF) announced in its updated World Economic Outlook report on Tuesday that it cut the global growth projections to 2.8% in 2025 and to 3% in 2026 from 3.3% for both years in the previous forecast, citing century-high US tariffs.
The Japanese Yen (JPY) is up 0.4% against the US Dollar (USD) and outperforming most of the G10 currencies, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The Canadian Dollar (CAD) is little changed on the session so far, reflecting a somewhat mixed trend in the USD overall, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The US Dollar (USD) is consolidating. The major currencies are trading mixed overall as markets steady and take stock of developments after yesterday’s steep US equity declines.
European Central Bank (ECB) policymaker Peter Kazimir said on Tuesday that he is confident that the 2% inflation target will be reached in the next few months, per Reuters.
The AUD/USD pair corrects slightly to near 0.6400 during European trading hours on Tuesday after posting a fresh four-month high at 0.6440 earlier in the day. The Aussie pair retraces as the US Dollar (USD) strives to gain ground after remaining in the downside trajectory in the last few weeks.
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, is bouncing off a three-year low ahead of the US trading session.
Silver price (XAG/USD) trades sideways around $32.50 during European trading hours on Tuesday. The white metal has turned sideways over the last three trading days as investors look for fresh development in trade relations between the United States (US) and China.
USD/JPY continues to trade with a heavy bias as broad USD softness persists. Pair was last at 140.34 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Dollar Index (DXY) continued to trade near recent lows and was last seen trading at 98.44, OCBC's FX analysts Frances Cheung and Christopher Wong note.
The US Dollar (USD) extended its decline as markets reacted to Trump's threats against Fed Chair Powell, worsening US asset market dynamics, and thin holiday liquidity. EUR/USD surged past 1.15, driven by ongoing risk aversion and safe-haven rotation away from the greenback.
EUR/USD retraces to near 1.1470 during North American trading hours on Tuesday from an over three-year high of 1.1575, which it posted on Monday. The major currency pair has witnessed some profit-booking as the US Dollar (USD) strives to gain ground near its recent lows.
Oil, though, was unable to escape the broader risk-off move in markets yesterday. ICE Brent settled 2.5% lower on the day, ING's commodity experts Ewa Manthey and Warren Patterson note
USD/CAD has fallen significantly in recent weeks. However, this was due to pronounced USD weakness rather than CAD strength. If the US dollar recovers, we are likely to see higher levels again.
USD/CAD continues to slide for the second consecutive day, trading near 1.3810 during Tuesday’s European session. The Canadian Dollar (CAD) gains traction, buoyed by a rebound in crude Oil prices and broader macroeconomic factors.
Last Thursday, Turkey's central bank (CBT) surprised markets by raising its main policy rate from 42.5% to 46.0%. Simultaneously, it increased the overnight lending rate to 49%, and the overnight borrowing rate to 44.5%.
The Japanese Yen (JPY) is the biggest winner in this latest round of USD selling, as it responds to both the equity slump and the risks of the Fed’s independence.
Pound Sterling (GBP) crosses trade mixed at the start of Tuesday, according to FXStreet data. The Pound Sterling (GBP) to the Japanese Yen changes hands at 188.02, with the GBP/JPY pair declining from its previous close at 188.44.
US Dollar (USD) losses of the past few weeks have been a combination of mounting US growth concerns and a loss of confidence in the dollar as a safe haven. The round of USD weakness seen on Easter Monday belongs to both trends.
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