The Greenback traded with a slightly positive bias on Tuesday, reversing a bearish start to the week and supported by consistent caution on US-China trade talks in London, while prudence also developed ahead of the publication of vital US inflation data on Wednesday.
Silver price faces resistance near $37.00 and retreats by some 0.50% on Tuesday as the US dollar stages a comeback, with investors growing more confident of a US-China deal later in the day. At the time of writing, the XAG/USD trades at $36.52, below its opening price.
EUR/USD remains stable during Tuesday’s North American session as investors await updates on US-China trade talks in London and the release of the latest inflation figures in the United States (US). At the time of writing, the pair is trading at 1.1423, virtually unchanged.
The Canadian Dollar (CAD) kicked back into recent highs against the US Dollar (USD) on Tuesday, keeping the USD/CAD pair restrained below the 1.3700 handle. Markets are increasingly focused on trade headlines and looming US Consumer Price Index (CPI) inflation data due on Wednesday.
The Mexican Peso (MXN) is trading flat against the US Dollar (USD) during Tuesday’s US session, as investor focus remained on the ongoing US–China trade talks in London.
The Dow Jones Industrial Average (DJIA) is still trading into the high end of recent congestion on Tuesday. Market momentum remains limited overall as traders brace for a one-two punch of trade headlines and key post-tariff Consumer Price Index (CPI) inflation data due on Wednesday.
US official reports ongoing US/China talks with technical details being worked out. Not so hot news is there is lack of progress in Iran's nuclear negotiations
The Japanese Yen (JPY) is steadying against the US Dollar (USD) on Tuesday, with the USD/JPY pair hovering above the 144.00 level in relatively muted trade.
West Texas Intermediate (WTI) crude Oil price is trading higher on Tuesday, extending its upward move for the fourth consecutive day, and supported by ongoing optimism around the second day of US–China trade talks in London.
A large majority of 59 economists polled by Reuters expect the Bank of England (BoE) to cut the policy by 25 basis points (bps) in the third quarter and the fourth quarter, bringing down the bank rate to 3.75% from 4.25%, where it currently stands.
59 of 105 economists polled by Reuters said that they expect the Federal Reserve (Fed) to resume cutting interest rates in the next quarter, likely in September.
The Japanese Yen (JPY) is strengthening against the British Pound (GBP) on Tuesday, following the release of employment data that suggests the UK economy may be under pressure.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, gives back its early gains and flattens around 99.00 during European trading hours on Tuesday.
The Euro (EUR) is also entering Tuesday’s NA session unchanged vs. the US Dollar (USD) with a modest recovery of mild late Asian/early European session weakness, Scotiabank's Chief FX Strategist Shaun Osborne notes.
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