OCBC strategists Sim Moh Siong and Christopher Wong argue that intervention risks and a more hawkish Bank of Japan (BoJ) are key for the Japanese Yen (JPY).

AUD/USD trims part of its earlier losses on Tuesday as traders assess fresh diplomatic signals surrounding the war between the United States (US) and Iran, weighing on the US Dollar (USD).

Brown Brothers Harriman’s (BBH) Elias Haddad highlights that GBP/USD remains under 1.3400 as United Kingdom (UK) fiscal policy turns more restrictive. Rising borrowing has eroded fiscal headroom, pressuring Chancellor John Healey to tighten via taxes and spending cuts.

MUFG’s Lee Hardman reports the Euro (EUR) is trading on a softer footing against the US Dollar, with EUR/USD near the bottom of its 1.1400–1.1800 range.

EUR/GBP edges higher on Tuesday as the British Pound (GBP) remains under pressure across the board, weighed by concerns over the UK’s deteriorating fiscal outlook and the Bank of England’s (BoE) reluctance to raise interest rates while several major central banks have moved toward tighter policy.

The Swiss Franc (CHF) extended its recovery against the US Dollar (USD) on Tuesday, favoured by lower Oil prices amid hopes of a new round of US-Iran negotiations, which has prompted the Swiss National Bank (SNB) to launch an intervention warning.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/JPY remains supported after testing the 157.30 area, with short-term price action expected to stay within a 156.90–157.80 range.

The Japanese Yen (JPY) claws back its early losses and turns slightly positive against the US Dollar (USD) during the European trading session on Thursday, with the USD/JPY pair dropping 0.2% to near 157.00.

The Canadian Dollar (CAD) trades practically flat against the US Dollar (USD) on Tuesday as the risk appetite triggered by Tehran’s proposal to reopen the Strait of Hormuz has offset the decline in Crude prices.

MUFG's Lee Hardman highlights the New Zealand Dollar (NZD) as the main overnight mover, boosted by hawkish guidance from Reserve Bank of New Zealand (RBNZ) Governor Breman. His comments on higher Oil-driven inflation have reinforced expectations for a third consecutive 25 bps hike next month.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann see AUD/USD consolidating around 0.7120 after a brief spike to 0.7140. Intraday price action is viewed as part of a 0.7105–0.7135 range.

The Euro (EUR) is failing to draw any support from the moderate risk appetite triggered by the recent pullback in Oil prices and extends losses against the US Dollar (USD) on Tuesday, hitting fresh seven-week lows below 1.1450.

USD/JPY gains ground for the third consecutive day, trading around 157.70 during the European hours on Tuesday. The currency pair is consolidating after the recent pullback while remaining capped by the medium-term trend filter.

The USD/CAD pair extends its consolidative price move through the early European session on Tuesday, trading below 1.4050, or the highest since August 6, amid mixed fundamental cues.

The British Pound (GBP) is giving back earlier gains against the US Dollar (USD) on Tuesday as data from the UK revealed that public sector borrowing increased beyond expectations in August, rekindling market concerns about government finances.

The Euro (EUR) is 0.2% at around 180.78 against the Japanese Yen (JPY) during the European trading session on Tuesday. The cross gains as the Japanese currency underperforms its currency peers.

The GBP/JPY cross scales higher for the third consecutive day – also marking the sixth day of a move up in the previous seven – and trades around the 210.75-210.80 region during the early European session on Tuesday.

EUR/USD remains subdued for the second successive day, trading around 1.1460 during the European hours on Tuesday. The pair faces challenges as the US Dollar (USD) recovers its daily losses amid prevailing hawkish sentiment surrounding the Federal Reserve (Fed) policy stance.

Francesco Pesole at ING highlights that EUR/USD short-term fair value from the bank’s 60‑day model has fallen below 1.150, with equities and rate differentials driving moves more than Oil.

The New Zealand Dollar (NZD) shows a modest recovery against the US Dollar (USD) on Thursday, favoured by somewhat brighter market sentiment as Brent Oil prices remain below the $100 level, which provides some relief to Oil-importing economies like New Zealand’s.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann remain negative on GBP/USD after the pair eased to around 1.3370. They expect a test of last week’s low near 1.3335, though a sustained break below that level and the major 1.3300 support is seen as unlikely.

The Japanese Yen (JPY) maintains its near-term bearish trend against the US Dollar (USD) on Tuesday. The USD/JPY pair is trading in the mid-157.00s at the time of writing, with bulls aiming for a previous support area just above 158.00 and the key 200-day Simple Moving Average (SMA) at 157.45. 

The Australian Dollar (AUD) trades flat at around 0.7117 against the US Dollar (USD) during the European trading session on Tuesday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann keep a bearish bias on EUR/USD after the pair closed lower near 1.1465.

The USD/CAD pair declines to around 1.4025 during the early European session on Tuesday. Nonetheless, the potential downside for the pair might be limited amid a hawkish stance of the US Federal Reserve (Fed).

The British Pound (GBP) is 0.15% higher at around 1.3385 against the US Dollar (USD) during the European trading session on Tuesday. The GBP/USD pair gains as the US Dollar is slightly under pressure ahead of meeting between leaders from the United States (US) and Gulf nations.

The Indian Rupee (INR) opens higher again versus the US Dollar (USD) on Tuesday. The USD/INR pair drops to near 95.65 as the Indian currency gains due to the consistent decline in oil prices.

Silver price (XAG/USD) inches lower after opening at a bullish gap, trading around $66.00 per troy ounce during Asian hours on Tuesday.

The EUR/USD pair trades in positive territory around 1.1475 during the early European session on Tuesday. The Euro (EUR) edges higher against the US Dollar (USD) amid improved risk sentiment as traders pinned their hopes on US-Iran talks.

The AUD/JPY cross attracts fresh buyers following a modest Asian session dip to the 111.80 area on Tuesday and turns positive for the seventh consecutive day. Spot prices, however, remain below last week's swing high and currently trade around the 112.15-112.20 region, up nearly 0.15% for the day.