EUR/USD
EUR/USD remains in the negative territory after trimming its recent losses, trading around 1.0380 during the Asian hours on Tuesday. The Euro remains under pressure as dovish expectations for the European Central Bank continue to dominate.
GBP/USD
GBP/USD depreciates following news that President Trump intends to direct federal agencies to review tariff policies. Traders speculate that Trump’s policies could lead to inflationary pressures, possibly restricting the Fed to just one more rate cut.
USD/JPY
The Japanese Yen (JPY) remains on the front foot against its American counterpart heading into the European session and trades just below a one-month peak touched earlier this Tuesday. US President Donald Trump’s tariff remarks revived fears about a global trade war. Apart from this, rising bets that the Bank of Japan (BoJ) will hike interest rates at its policy meeting later this week turn out to be key factors underpinning the safe-haven JPY.
AUD/USD
The Australian Dollar (AUD) loses ground on Tuesday after a strong performance in the previous session. The AUD/USD pair remains subdued as US President Donald Trump stated, “If we make a TikTok deal and China doesn’t approve it, we could maybe put tariffs on China.” This remark follows his signing of an executive order that postpones the enforcement of the TikTok ban by 75 days. Since China and Australia are close trading partners, any shifts in China’s economy could have an impact on Australian markets.
NZD/USD
The NZD/USD pair slumps to around 0.5645 during the Asian trading hours on Tuesday. The US Dollar (USD) rebounds after US President Donald Trump said that he intends to impose 25% tariffs on Canada and Mexico on February 1.
USD/CAD
The USD/CAD pair jumps to 1.4518 before pulling back sharply to 1.4445 during the Asian trading hours on Tuesday. The Canadian Dollar (CAD) weakens on US President Donald Trump’s remarks on tariffs on Canada. Later on Tuesday, the Canadian December Consumer Price Index (CPI) inflation data will be in the spotlight.
USD/CHF
USD/CHF holds ground after experiencing volatility, trading around 0.9070 during the Asian session on Tuesday. The US Dollar saw volatility as US President Donald Trump’s inauguration day made waves. However, the USD faced downward pressure as Trump appeared to strengthen his relationship with Chinese President Xi Jinping, with the TikTok deal and a potentially softer approach to tariffs contributing to the shift.
CRUDE OIL
Oil prices were little changed in Asian trading on Tuesday as investors took stock of President Donald Trump’s plans to apply new tariffs later than expected while boosting oil and gas production in the U.S.
GOLD
Gold price gains strong positive traction amid the flight to safety after Trump’s tariff remarks. Bets for more Fed rate cuts weigh on the US bond yields and further underpin the yellow metal. A modest USD recovery, along with a positive risk tone, caps further gains for the commodity.
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