The Euro is trading without a clear direction, as the enthusiasm of the delay on Trump’s 50% tariffs wears out, while the moderate rebound on Oil prices is providing some support to the loonie.The pair has been losing momentum after hitting one-month highs, right above 1.5750 last week, yet with dow
Switzerland Economy Minister Guy Parmelin said on Tuesday, “we hope that by the beginning of July, we will have a result from discussions with the US.”
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is continuing its recovery from a five-week low of 98.70, recorded in the previous session. On Tuesday, the DXY is trading around 99.30 during the European hours.
Gold (XAU/USD) price is trading near $3,290 at the time of writing on Tuesday with Risk On pushing the precious metal lower. Gold extends its decline for a second day this week as the US dollar caught up with some gains and demand for haven assets cooled, with investors also weighing prospects for
The AUD/USD pair continues to lose ground for the second successive day, trading around 0.6450 during the European hours on Tuesday. The bullish bias is prevailing as the technical analysis of the daily chart indicates that the pair is remaining within the ascending channel pattern.
USD/JPY traded lower intra-day after BoJ Governor Ueda called for vigilance over food inflation risks. Japan's core inflation hit 3.5% in April, accelerating at its fastest annual pace in more than two years due largely to a 7% surge in food costs.
Conditions remain overbought; instead of rising, New Zealand Dollar (NZD) is more likely to trade in a range between 0.5960 and 0.6020 vs US Dollar (USD). In the longer run, for a sustained advance, NZD must break and hold above 0.6030, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Markets were largely quiet overnight with US and UK markets closed for public holiday. DXY was last at 99.29 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Australian Dollar (AUD) is expected to consolidate in a range between 0.6455 and 0.6510 vs US Dollar (USD). In the longer run, rapid buildup in momentum suggests AUD is likely to trade with an upward bias toward 0.6550, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The Euro is trading higher for the second consecutive day, still fuelled by the delay of Trump’s deadline to avoid 50% tariffs in the US, while the Yen declines alongside super long-term Japanese yields.The pair extended its rebound from last week’s lows, at 161.00, to levels above 163.00 and is aim
The Reserve Bank of New Zealand is widely expected to cut rates by another 25bp to 3.25% tonight (announcement at 04:00am CET). The Bank will also publish the new Monetary Policy Statement, which includes policy rate projections.
Pound Sterling (GBP) is expected to consolidate between 1.3540 and 1.3600. In the longer run, upward momentum remains strong; the next objective is 1.3635, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
AUD/JPY steadies after recovering daily losses, trading around 92.80 during the European hours on Tuesday. The currency cross gains ground as the Japanese Yen (JPY) depreciates over fading safe-haven demand.
"Overnight at an event in Berlin, ECB’s Lagarde made another attempt to raise Euro’s profile. She said that 'The ongoing changes create the opening for a ‘global Euro moment’… This is a prime opportunity for Europe to take greater control of its own destiny.
Upward momentum is slowing, but Euro (EUR) could edge higher within a range of 1.1360/1.1420 vs US Dollar (USD). In the longer run, a decisive break above 1.1435 could push EUR to 1.1475, with potential for further gains, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The Euro has come through the US tariff scare with barely a scratch. As discussed above, markets’ tendency to punish the dollar when trade tensions escalate means a rotation to the liquid Euro often prevents the idiosyncratic risks for the Eurozone from being priced in.
The Pound Sterling (GBP) slides to near 1.3540 against the US Dollar (USD) in Tuesday’s North American session after correcting from the three-year high around 1.3600 posted the previous day.
Minneapolis Federal Reserve (Fed) President Neel Kashkari said on Tuesday that he supports the stance to maintain interest rates until there is some more clarity on the impact of higher tariffs on inflation.
The very soft French inflation figures are weighing on the euro as the market might start to look for a stronger divergence between the Fed and the ECB
The New Zealand Dollar failed to break the Year-to-Date high at 0.6030 and is trading lower on Tuesday, weighed by a somewhat stronger US Dollar and market expectations that the RBNZ will ease its monetary policy further on Wednesday.
European Central Bank (ECB) Governing Council member Gediminas Šimkus said on Tuesday that “the risks that inflation will be below the goal in the future have increased.”
West Texas Intermediate (WTI) Oil price remains subdued for the second successive session, trading around $61.10 per barrel during the early European hours on Tuesday.
European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Tuesday that “policy normalization in the Euro area is probably not complete.”
The EUR/GBP cross holds steady near 0.8390 during the early European session on Tuesday. Traders will take more cues from Consumer Confidence in the Eurozone. The attention will shift to the German Retail Sales data, which is due later on Friday.
The Pound is trading higher for the second consecutive day on Tuesday, with the UK market returning from a long weekend on a moderately positive market mood. Trump’s decision to delay a 50% tariff on Eurozone products has boosted market sentiment.The positive mood is weighing on the Japanese Yen.
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