USD/CAD slipped about 0.1% on Tuesday, settling near 1.3660 in a thin daily change after Monday's broader US Dollar bid failed to carry through. The pair has been trending lower since the January highs close to 1.3930, carving out a series of lower highs and lower lows.

USD/JPY trades higher on Tuesday as broad-based US Dollar (USD) strength weighs on the Japanese Yen (JPY). At the time of writing, the pair is hovering around 157.77, its highest level since January 23.

AUD/USD extends its pullback and trades around 0.6990 on Tuesday at the time of writing, down 1.36% on the day, after breaking below the 0.7000 level. The pair is now hovering at multi-week lows, pressured by renewed demand for the US Dollar (USD) and a market environment dominated by risk aversion.

The Pound Sterling extends its losses during the North American session as the conflict in the Middle East involving the US, Israel and Iran, intensified fueling a flight to safety sponsored by inflationary pressures on high Oil prices.

Silver (XAG/USD) extends losses on Tuesday, falling nearly 10% as a stronger US Dollar (USD) and rising US Treasury yields temper demand for safe-haven assets despite fragile market sentiment linked to the ongoing US-Iran conflict.

Scotiabank analysts Shaun Osborne and Eric Theoret note that USD/JPY is up modestly, with the Japanese Yen soft versus the US Dollar but outperforming most G10 currencies except the Canadian Dollar.

Nomura analysts argue that the conflict-driven risk environment is likely to intensify appreciation pressure on the Swiss Franc.

The Euro (EUR) trades under mild pressure against the British Pound (GBP) on Tuesday as traders reassess the monetary policy outlook for major central banks amid inflation concerns tied to higher Oil prices driven by the US-Iran conflict.

BNY’s Head of Markets Macro Strategy Bob Savage reports Japan’s Finance Minister Satsuki Katayama is monitoring markets with “utmost vigilance” and stands ready to act against sharp FX moves as USD/JPY trades above 157.

MUFG’s Senior Currency Analyst Lee Hardman reports that the Australian Dollar and Canadian Dollar are holding up better against the US Dollar than European currencies.

The EUR/USD pair plummets 0.85% to near 1.1585 during the European session on Tuesday, and seems on track to test its three-month low of 1.1575.

Eurozone Core Harmonized Index of Consumer Prices (YoY) above expectations (2.2%) in February: Actual (2.4%)

Eurozone Harmonized Index of Consumer Prices (MoM) climbed from previous -0.6% to 1.7% in February

Eurozone Core Harmonized Index of Consumer Prices (MoM): 0.8% (February) vs -1.1%

Eurozone Harmonized Index of Consumer Prices (YoY) above forecasts (1.7%) in February: Actual (1.9%)

MUFG’s Senior Currency Analyst Lee Hardman notes the Swiss Franc has failed to benefit from safe-haven demand, as the Swiss National Bank signalled a greater willingness to intervene in FX markets. The SNB’s statement lifted EUR/CHF back above 0.9100 after a 0.9025 low.

The AUD/USD pair attracts fresh sellers following an intraday uptick to the 0.7120-0.7125 region and extends its steady intraday descent through the first half of the European session on Tuesday.

The USD/JPY pair extends its sideways consolidative price move through the early European session on Tuesday. Spot prices remain below the highest level in over five weeks, touched the precious day, and currently trade below mid-157.00s, nearly unchanged for the day.

Brazil Fipe's IPC Inflation: 0.25% (February) vs 0.21%

Silver price (XAG/USD) extends its losses for the second successive session, trading around $87.20 per troy ounce during the early European hours on Tuesday. The precious metal faces challenges despite increased safe-haven demand amid the Middle East war.

Heightened market volatility due to escalating oil prices amid the war in the Middle East between the United States (US), Iran, and Israel has raised concerns over the likelihood of an interest rate hike by the Bank of Japan (BoJ) in its upcoming monetary policy meeting on March 19.

The Eurozone preliminary Harmonized Index of Consumer Prices (HICP) data for February is scheduled to be published today at 10:00 GMT.

The AUD/JPY cross trades on a flat note around 111.45 during the early European session on Tuesday. Hawkish rhetoric from the Reserve Bank of Australia (RBA) could provide some support to the Australian Dollar (AUD) against the Japanese Yen (JPY). 

The Pound Sterling (GBP) trades lower against its major currency peers, slides 0.3% to near 1.3360 against the US Dollar (USD) during the European trading session on Tuesday.

USD/CHF gains ground for the second successive session, trading around 0.7810 during the Asian hours on Tuesday. The pair advances as the US Dollar (USD) strengthens on heightened safe-haven demand amid the Middle East war.

The USD/CAD pair trades in a tight range around 1.3670 during the late Asian trading session on Tuesday. The Loonie pair consolidates as the strengthening Canadian Dollar (CAD) due to surging oil prices amid war between the United States (US), Israel, and Iran has offset the firm US Dollar (USD).

The AUD/USD pair trades 0.2% higher to near 0.7110 during the Asian trading session on Tuesday. The Aussie pair trades firmly as the Australian Dollar (AUD) outperforms its peers, following hawkish remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock on the monetary policy outlook.

The EUR/JPY cross posts modest losses around 183.90 during the early European session on Tuesday. The Japanese Yen (JPY) strengthens against the Euro (EUR) as rising geopolitical tensions in the Middle East boost the safe-haven demand.

The GBP/JPY cross meets with some supply near the 211.35 area during the Asian session on Tuesday and stalls the previous day’s goodish rebound from the 209.00 mark, or a four-day low.

The EUR/USD pair trades flat at around 1.1680 during the Asian trading session on Tuesday, but broadly seems vulnerable, being close to its five-week low.