The EUR/GBP cross trades on a flat note near 0.8660 during the early European trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of the Bank of England (BoE) and the European Central Bank (ECB) interest rate decisions later on Thursday.
The Australian Dollar (AUD) demonstrated a mixed performance against its major currency peers, trading marginally lower against the US Dollar (USD) around 0.7180 during the European trading session on Tuesday.
The USD/CAD pair posts modest gains near 1.3635 during the early European trading hours on Tuesday. Uncertainty over US-Iran peace talks and the closure of the Strait of Hormuz provide some support to a safe-haven currency such as the US Dollar (USD) against the Canadian Dollar (CAD).
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground after two days of losses and trading around 98.50 during the Asian hours on Tuesday.
The USD/CHF pair gathers strength near 0.7865 during the early European session on Tuesday. The US Dollar (USD) edges higher against the Swiss Franc (CHF) due to the stalled US-Iran ceasefire and the closure of the Strait of Hormuz.
EUR/JPY remains subdued after two days of gains, trading around 186.40 during the Asian hours on Tuesday. The currency cross holds losses following the release of the Bank of Japan (BoJ) policy decision.
The AUD/JPY cross declines to near 114.30 during the Asian trading hours on Tuesday. The Japanese Yen (JPY) strengthens against the Australian Dollar (AUD) after the Bank of Japan's (BoJ) interest rate decision.
The Japanese Yen (JPY) attracts bids against its major currency peers, with the USD/JPY pair sliding to near 159.25, after the Bank of Japan’s (BoJ) monetary policy announcement. The BoJ has left interest rates unchanged at 0.75% for the third meeting in a row.
The GBP/USD pair trades in negative territory around 1.3525 during the early Asian session on Tuesday. The Pound Sterling (GBP) softens against the US Dollar (USD) as traders prefer to wait on the sidelines ahead of the Federal Reserve (Fed) and the Bank of England (BoE) later this week.
The EUR/USD pair trades with mild gains around 1.1725 during the early Asian session on Tuesday. However, the potential upside might be limited as market sentiment remains fragile due to stalled US-Iran peace talks.
GBP/USD ended Monday largely unchanged from Friday's closing bids close to 1.3535, with the pair drifting in a tight range through the European and US sessions.
The Bank of Japan (BoJ) will announce its monetary policy decision on Tuesday, at around 3:00 GMT. The BoJ is widely expected to deliver a hawkish hold, keeping the benchmark interest rate unchanged at 0.75% while also hinting at a willingness to hike rates.
Commerzbank’s FX team highlights that CNY is the only Asian currency stronger against the Dollar since late February, helped by robust exports and policy support.
