The Japanese Yen (JPY) strengthens against the US Dollar (USD) on Tuesday as the Greenback remains on the back foot following the release of the delayed October and November Nonfarm Payrolls (NFP) reports.

The GBP/USD surges 0.42% on Tuesday as the latest US jobs report revealed the labor mark weakness, while Retail Sales were unexpectedly unchanged from September figures, an indication of consumers’ resilience. At the time of writing, the GBP/USD trades at 1.3432 after reaching a daily low of 1.3355.

The Euro (EUR) edges higher against the US Dollar (USD) on Tuesday after brief two-way volatility as traders digested the delayed US labour market and consumer spending data.

The Euro (EUR) weakens against the British Pound (GBP) on Tuesday, as Sterling outperforms most major peers following the release of UK labour market data. At the time of writing, EUR/GBP trades around 0.8763, down nearly 0.25% on the day, snapping a three-day winning streak.

The Pound Sterling (GBP) outperformed as UK labor market conditions eased and the December PMI signaled firmer private sector growth, while markets fully priced in an upcoming Bank of England rate cut, BBH FX analysts report.

EUR/USD is trading near its highest level since October 1 as Eurozone PMI data showed a modest slowdown, while German ZEW expectations improved sharply.

USD/JPY softened as UST yields slipped, with the market largely pricing in a 25bp Bank of Japan (BOJ) hike this Friday and another in 2026.

Eurozone ZEW Survey - Economic Sentiment jumps sharply to 33.7 in December. The sentiment indicator was expected to increase slightly to 26.3 from 25.0 in November.

Eurozone ZEW Survey – Economic Sentiment above expectations (26.3) in December: Actual (33.7)

Eurozone Trade Balance s.a. dipped from previous €18.7B to €14B in October

Eurozone Trade Balance n.s.a. dipped from previous €19.4B to €18.4B in October

Germany ZEW Survey – Current Situation came in at -81, below expectations (-80) in December

Germany ZEW Survey – Economic Sentiment above forecasts (38.5) in December: Actual (45.8)

Food prices in New Zealand fell by 0.4% in November compared with the previous month. However, they are still 4.4% higher than a year ago and therefore continue to pose a problem for the central bank.

The flash estimates for the Japanese purchasing managers' indices were somewhat weaker this morning than in the previous month. However, at 51.5, the composite PMI remained in expansionary territory.

Eurozone HCOB Services PMI came in at 52.6 below forecasts (53.9) in December

Eurozone HCOB Manufacturing PMI below forecasts (49.9) in December: Actual (49.2)

Eurozone HCOB Composite PMI came in at 51.9, below expectations (53) in December

The Pound Sterling (GBP) demonstrates sheer volatility against its major currency peers on Tuesday, following the release of the United Kingdom (UK) labour market data for the three months ending in October.

Germany HCOB Services PMI below expectations (52.8) in December: Actual (52.6)

Germany HCOB Composite PMI below expectations (52.5) in December: Actual (51.5)

Germany HCOB Manufacturing PMI below expectations (48.5) in December: Actual (47.7)

EUR/USD remains steady near two-and-a-half-month highs on Tuesday, trading practically flat at 1.1750 at the time of writing, ahead of the release of the preliminary Eurozone Manufacturing and Services Purchasing Managers Indexes (PMIs) for December and the delayed US employment figures.

France HCOB Composite PMI down to 50.1 in December from previous 50.4

France HCOB Manufacturing PMI registered at 50.6 above expectations (48.2) in December

France HCOB Services PMI came in at 50.2 below forecasts (51.3) in December

The GBB/JPY cross prolongs its recent pullback from the 209.00 neighborhood or the highest level since August 2008, touched last week, and drifts lower for the fourth straight day on Tuesday.

The EUR/GBP cross pares gains near 0.8785 during the early European session on Tuesday. The Pound Sterling (GBP) recovers some lost ground against the Euro (EUR) after the UK employment data.

The AUD/USD pair prolongs last week's retracement slide from a nearly three-month peak, around the 0.6685 region, and drifts lower for the fourth straight day on Tuesday.

The USD/CHF pair trades stably around 0.7960 during the early European trading session on Tuesday. The Swiss Franc pair remains calm as investors await the United States (US) Nonfarm Payrolls (NFP) report for October and November, which will be published at 13:30 GMT.