ING’s Francesco Pesole notes EUR/USD has held up with risk sentiment despite Gulf tensions, but warns current levels may not withstand an equity correction.

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%

The USD/CAD pair trades 0.12% higher to near 1.3695 during the European trading session on Tuesday.

MUFG’s strategists note that the US Dollar (USD) has weakened despite solid United States (US) jobs data, as optimism over a potential US/Iran deal and surging US equities support risk appetite.

The GBP/JPY cross struggles to capitalize on the previous day's bounce from the 100-day Simple Moving Average (SMA) and attracts heavy intraday selling on Tuesday.

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.

Cardano (ADA) extends losses below $0.2800 on Tuesday after the 100-day Exponential Moving Average capped Sunday’s 4% recovery. Retail demand is shifting bearish as positional buildup aligns with negative funding rates.

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.

Rabobank's Senior Market Strategist Benjamin Picton notes that Brent and WTI have reacted only modestly to renewed United States (US)-Iran tensions, with Brent holding near $105 and WTI below $100.

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.

Silver (XAG/USD) accelerates its reversal in the early European session on Tuesday, trading at $84.80 at the time of writing, after rejection at two-month highs right above $87.00 earlier in the day.

ING’s Commodities Strategist Ewa Manthey explains why Gold has dropped about 12% since the Iran conflict began, despite its reputation as a safe haven. She argues the move reflects macro headwinds from higher Oil prices, stronger US Dollar (USD) and elevated real yields.

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.

MUFG’s Lloyd Chan flags India’s April Consumer Price Index (CPI) release as a key risk for the Indian Rupee (INR), with higher energy prices and a softer currency building inflation tailwinds.

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

Switzerland Producer and Import Prices (MoM) came in at 0.8%, above forecasts (0.1%) in April

The GBP/USD pair is down 0.3% to near 1.3570 during the European trading session on Tuesday. The Cable faces selling pressure as the US Dollar (USD) outperforms its peers due to a risk-off market mood.

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.

The EUR/GBP cross gains traction near 0.8665 during the early European session on Tuesday. The British Pound (GBP) weakens against the Euro (EUR) amid political instability in the United Kingdom (UK). Traders brace for the ZEW surveys from Germany and the Eurozone, which are due later on Tuesday. 

Commerzbank analysts note the US Dollar Index (DXY) inched up to 97.96 as markets consolidated and prepared for United States (US) Consumer Price Index (CPI).

UOB strategists Quek Ser Leang and Lee Sue Ann note AUD/USD gapped down to 0.7205 before rebounding to close near 0.7250, with intraday risks skewed toward a retest of 0.7220 while 0.7205 is expected to hold. Over 1–3 weeks, they see scope for the pair to edge higher but capped below 0.7280.

Hyperliquid (HYPE) extends its pullback, trading below $42 as of writing on Tuesday, breaking beneath its rising trendline support. Weakening derivatives metrics support the bearish price action.

Germany Consumer Price Index (MoM) in line with forecasts (0.6%) in April