European Central Bank (ECB) Governing Council Member and President of the Deutsche Bundesbank, Joachim Nagel, said during the European trading session on Tuesday that the baseline includes two interest rate hikes in the near term.

Deutsche Bank analysts report that the S&P 500 closed at another record high, supported by strong gains in chip stocks and energy names, even as broader market breadth remained cautious.

Italy Industrial Output s.a. (MoM) above forecasts (0.2%) in March: Actual (0.7%)

Italy Industrial Output w.d.a (YoY) up to 1.5% in March from previous 0.5%

US Treasury Secretary Scott Bessent said during the European trading session on Tuesday that he and Japan’s Prime Minister (PM) Sanae Takaichi both believe that forex volatility is undesirable.

NZD/USD extends its losses for the second successive day, trading around 0.5940 during the early European hours on Tuesday. The pair depreciates as the US Dollar (USD) strengthens on the back of renewed United States (US)-Iran tensions.

BNY strategists John Velis and David Tam argue that resilient United States (US) data and likely elevated inflation prints make it harder to justify Federal Reserve (Fed) rate cuts this year.

Danske Bank analysts note that global equities finished slightly higher, with major United States (US) indices such as the S&P500, Nasdaq and Russell2000 posting modest gains.

The Zentrum für Europäische Wirtschaftsforschung (ZEW) will release its German Economic Sentiment Index and the Current Situation Index for May at 09:00 GMT later on Tuesday.

Switzerland Producer and Import Prices (YoY) rose from previous -2.7% to -2% in April

United States (US) Treasury Secretary Scott Bessent confirmed through a post on X, formerly known as Twitter, that the US and Japan took some actions together against excessive volatility in currency markets.

TradingKey - March 2026 CPI numbers came in very strong, delivering a hefty inflation blow in the aftermath of the US-Iran conflict. The headline measure shot up to +3.3% year-over-year – the best sin

Asian stock markets trade mixed on Tuesday as investors remain on edge amid fading hopes for a US-Iran peace deal and de-escalation of tensions in the Middle East.

Japan Coincident Index: 116.5 (March) vs 116.3

Japan Leading Economic Index registered at 114.5, below expectations (114.6) in March

EUR/JPY extends its gains for the fourth successive day, trading around 185.40 during the Asian hours on Tuesday. The currency cross appreciates as the Japanese Yen (JPY) struggles following the disappointing release of Japan's Household Spending data.

Australia National Australia Bank's Business Conditions: 3 (April) vs previous 6

Australia National Australia Bank's Business Confidence rose from previous -29 to -24 in April

Japan’s Finance Minister Satsuki Katayama said that Japan and the United States (US) reaffirmed their ‌close cooperation on currency moves after a meeting with US Treasury Secretary Scott Bessent, Reuters reported on Tuesday.

US President Donald Trump has grown increasingly frustrated with how the Iranians are handling talks to end the conflict, and some Trump aides say that he is now more seriously considering a resumption of major combat operations than he has in recent weeks, CNN reported on Monday.

The Bank of Japan (BoJ) published the Summary of Opinions from the April monetary policy meeting, with the key findings noted below.   

Japan JP Foreign Reserves down to $1B in April from previous $1374.7B

Japan Overall Household Spending (YoY) came in at -2.9% below forecasts (-1.3%) in March

ING’s Lynn Song notes that stronger China Consumer Price Index (CPI) and Producer Price Index (PPI) data in April, alongside resilient exports, reinforce a reflation narrative that reduces urgency for People’s Bank of China (PBoC) easing.

Societe Generale analysts observe USD/CNY trading below 6.80, with the Chinese Yuan at its strongest level since February 2023 ahead of the US/China summit.

DBS Group Research economist Ma Tieying revises Taiwan’s policy rate outlook after upgrading 2026 Gross Domestic Product (GDP) and Consumer Price Index (CPI) forecasts. The team now expects an additional 12.5 bps hike in 3Q, taking the policy discount rate to 2.125%.

BNP Paribas economists note Chinese GDP growth at 5.0% year-on-year in Q1 2026, after 5% in 2025, and expects a moderate slowdown in 2026. They highlight a K-shaped pattern with strong exports but weak domestic demand and ongoing property sector stress.

UOB economists Julia Goh and Loke Siew Ting note that Bank Negara Malaysia’s (BNM) foreign reserves climbed to USD129.7bn at end-April 2026, the highest since 2014, providing a stronger buffer for the Malaysian Ringgit (MYR).

Rabobank’s Senior FX Strategist Jane Foley notes Japanese wage data have improved, with unions securing solid ‘shunto’ wage hikes and real wages rising again, supporting the Bank of Japan’s (BoJ) desired virtuous cycle.

HSBC economists argue Emerging Markets (EM) remain well positioned in 2026 as the US Dollar (USD) weakens and global policy easing supports a broadening of returns beyond US mega-cap tech.