EUR/GBP trades around 0.8650 on Tuesday, holding steady on the day as investors digest a series of weaker-than-expected activity releases in both the Eurozone and the United Kingdom (UK), pointing to a clear slowdown in growth.

BNY's Head of Markets Macro Strategy Bob Savage relays comments from RBNZ Governor Anna Breman, who expects the Middle East conflict to lift near‑term headline inflation and weaken New Zealand’s growth momentum.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights that USD/JPY is trading directionless just below 159.00 as Japanese inflation slowed in February but is expected to rebound.

Germany 5-y Note Auction: 2.72% vs 2.4%

Eurozone HCOB Services PMI came in at 50.1 below forecasts (51) in March

Eurozone HCOB Composite PMI below forecasts (51.1) in March: Actual (50.5)

Eurozone HCOB Manufacturing PMI came in at 51.4, above expectations (49.5) in March

OCBC strategists Sim Moh Siong and Christopher Wong stay constructive on the Australian Dollar (AUD) despite recent risk-off pressure from higher energy prices. They highlight above-target inflation, resilient domestic activity and a more hawkish Reserve Bank of Australia (RBA) as key supports.

ING economist Chris Turner notes EUR/GBP remains offered despite sharp declines in UK short‑dated rates, with clear technical support at 0.8600/0.8620 that markets expect to hold.

Germany HCOB Services PMI came in at 51.2 below forecasts (52.5) in March

Germany HCOB Manufacturing PMI above forecasts (49.8) in March: Actual (51.7)

Germany HCOB Composite PMI came in at 51.9, above forecasts (51.8) in March

France HCOB Composite PMI down to 48.3 in March from previous 49.9

France HCOB Manufacturing PMI came in at 50.2, above forecasts (49) in March

France HCOB Services PMI came in at 48.3 below forecasts (49.2) in March

The United Kingdom (UK) docket has the preliminary Purchasing Managers’ Index (PMI) data for March to be released by the S&P Global on Tuesday, later this session at 09:30 GMT.

The Japanese Yen (JPY) claws back its early losses against the US Dollar (USD), turning flat around 158.50 during the European trading session on Tuesday. The USD/JPY pair falls back as the US Dollar surrenders its early gains amid improving investors’ risk appetite.

AUD/JPY extends its losses for the second successive session, trading around 111.00 during the early European hours on Tuesday. The technical analysis of the daily chart suggests a potential bearish reversal as the currency cross is testing the lower boundary of the ascending channel pattern.

DBS Group Research economist Radhika Rao states that surging energy costs and a widening current account deficit are exerting immense pressure on the Indian Rupee (INR), pushing USD/INR toward new highs.

The GBP/JPY cross reverses an intraday dip to the 212.30-212.25 region and climbs to the top end of its daily range heading into the European session on Tuesday.

The AUD/USD pair tumbles to near 0.6980 during the early European session on Tuesday, pressured by escalating tensions in the Middle East. US President Donald Trump said on Monday that he will postpone his deadline for Iran to reopen the Strait of Hormuz by five days.

The preliminary German and Eurozone flash HCOB Purchasing Managers’ Index (PMI) data for March is due for release today at 08:30 and 09:00 GMT, respectively.

Commerzbank analyst Volkmar Baur highlights that Japanese inflation fell more than expected in February, with weak services and food prices pointing to ongoing disinflation despite higher Oil.

The USD/CAD pair trades 0.25% higher to near 1.3760 during the early European session on Tuesday, the highest level seen in almost two months.

The EUR/GBP cross trades on a flat note around 0.8650 during the early European session on Tuesday. The pair faces a volatile session amid escalating geopolitical tensions in the Middle East and shifting expectations for central bank policy.

The EUR/USD pair loses momentum to near 1.1580 during the early European session on Tuesday. The Euro (EUR) weakens against the Greenback as escalating geopolitical tensions in the Middle East drive traders toward a safe-haven currency. 

The NZD/USD pair continues with its struggle to make it through a technically significant 200-day Simple Moving Average (SMA) and attracts fresh sellers during the Asian session on Tuesday.

The USD/JPY pair attracts some dip-buyers following the previous day's pullback of around 165 pips from the vicinity of its highest level since July 2024, and climbs to the 158.75-158.80 region during the Asian session on Tuesday.

The EUR/JPY cross loses ground to near 183.85 during the early European session on Tuesday. The Japanese Yen (JPY) strengthens against the Euro (EUR) amid the ongoing conflict in the Middle East, which boosts safe-haven flows.

USD/CHF has recovered its recent losses from the previous day, trading around 0.7880 during the Asian session on Tuesday. The pair gains ground as the US Dollar (USD) receives support amid rising geopolitical tensions.