MUFG’s Derek Halpenny highlights continued Euro weakness, noting EUR remains the worst performing G10 currency this month despite a narrowing OAT/Bund spread and more supportive swap differentials. The analysis links renewed EUR/USD downside to rising natural gas prices and growing investor scepticism over the European economy’s ability to withstand the ongoing energy price shock.

Societe Generale’s Kenneth Broux and team note AUD/USD has defended its March uptrend near 0.6900 and is trading sideways around the 100-day moving average, outperforming G10 currencies ahead of Australian CPI and the RBNZ decision.

Brown Brothers Harriman’s (BBH) Elias Haddad describes a brutal election shock for Brazilian assets, with USD/BRL spiking before stabilizing and local equities and bonds plunging. He argues President Lula’s tolerance for higher debt may weigh on Brazilian markets, but notes conservative legislative constraints and Brazil’s attractive carry and commodity exposure as structural supports for the Brazilian Real.

Francesco Pesole at ING writes that the Euro is struggling as USD strength dominates, with EUR/USD still showing a short-term undervaluation largely linked to French risks.

The Euro (EUR) extends its losing streak against the US Dollar (USD) for the fifth trading day on Tuesday. The EUR/USD pair slumps to near 1.1140 as the Euro underperforms due to revival of concerns in French bond market.

Halpenny at MUFG notes renewed Japanese Yen weakness, with USD/JPY seen vulnerable to further gains as markets await comments from BoJ Governor Ueda.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann observe that AUD/USD has stalled after testing 0.7040, with intraday momentum indicators turning flat and suggesting consolidation between 0.7005 and 0.7035. On a 1–3 week basis, prior upside bias is fading as the pair struggles to clear 0.7040, and a break below 0.6995 would negate prospects for a move toward 0.7070. Longer-term EMAs still point to downside risks toward 0.6923.

The GBP/USD pair drifts lower for the third straight day on Tuesday, extending its recent pullback from the highest level since September 16, around the 1.3420 area, touched last week.

ING’s Francesco Pesole expects the Reserve Bank of New Zealand (RBNZ) to deliver a 25bp rate hike to 3.0%, matching consensus and market pricing.

The Australian Dollar (AUD) marginally higher at around 0.7020 against the US Dollar (USD) during the European trading session on Tuesday. The Aussie pair edges up as the Australian Dollar outperforms, except the New Zealand Dollar (NZD).

HSBC’s FX Viewpoint notes recent Pound resilience, with GBP outperforming most G10 currencies over the past month.

TD Securities strategists see USD/BRL driven by Brazilian politics and fiscal concerns after Lula’s surprise election win.

The USD/CAD pair attracts some dip-buyers near the 1.4000 psychological mark on Tuesday, reversing a part of the previous day's modest losses amid a broadly firmer US Dollar (USD).

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report that USD/JPY rebounded sharply to 157.64 instead of consolidating, with the move seen as overdone and likely to lead to intraday range-trading between 156.90 and 157.80. On a 1–3 week view, the earlier strong downside momentum is slowing, and a break above 157.80 would signal a shift into a range-trading phase rather than further declines, though the broader 1–3 month outlook still points to downside risks.

The Euro (EUR) has retraced previous gains against the British Pound (GBP) on Tuesday, weighed down by high Oil prices and the ongoing concerns about France’s fiscal health.

The Japanese Yen (JPY) continues to underperforms its peers amid caution ahead of the Bank of Japan’s (BoJ) monetary policy announcement on Friday. In the European trade on Tuesday, the US Dollar (USD) is up 0.22% at around 157.80 against the Japanese currency.

Here is what you need to know on Tuesday, October 27:

National Bank of Canada (NBC) strategist Kyle Dahms analyzes recent Canadian Dollar (CAD) volatility, noting modestly positive correlation with WTI but stronger links to Gold and two-year yield spreads.

The GBP/USD pair declines to near 1.3335 during the early European trading hours on Tuesday. Traders prefer to wait on the sidelines and avoid taking big positions ahead of the UK Autumn Budget and US Federal Reserve (Fed) interest rate decision on Wednesday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that EUR/USD failed to hold its recent range, slipping to 1.1172 and reinforcing a short-term downside bias. Intraday, the pair is seen drifting toward 1.1150, with 1.1135 considered a lower but less likely target.

The British Pound (GBP) underperforms its major currency peers, except the Japanese Yen (JPY), on Tuesday. Against the Japanese currency, the Pound Sterling is up 0.18% to near 210.30.

The Indian Rupee (INR) weakens again versus the US Dollar (USD) as demand for US Dollars remains significant due to elevated oil prices. In the opening trade on Tuesday, the USD/INR pair is slightly up to near 95.22.

The EUR/USD pair trades in negative territory near 1.1165 during the early European session on Tuesday. The Euro (EUR) extends its downside against the US Dollar (USD) as France’s fiscal concerns renewed financial stress across the Eurozone.

The AUD/USD pair once again fails near the 100-day Simple Moving Average (SMA), trimming a part of Tuesday's modest Asian session gains back closer to a one-month high, which it touched the previous day.

USD/CHF inches higher after two days of gains, hovering around 0.8280 during Asian hours on Tuesday. The pair moves little as the US Dollar (USD) remains stronger, driven by market caution ahead of looming interest rate decisions by the US Federal Reserve (Fed) due on Wednesday.

The AUD/JPY cross trades in positive territory around 110.75 during the early European trading hours on Tuesday. Hawkish tone from the Reserve Bank of Australia (RBA) provides some support to the Australian Dollar (AUD) against the Japanese Yen (JPY).

EUR/JPY remains stronger for the second successive day, trading around 176.20 during Asian hours on Tuesday. Based on the technical analysis of the daily chart's descending channel pattern, the currency cross maintains a clear bearish bias.

Silver price (XAG/USD) depreciates after posting minor gains in the previous day, trading around $53.80 per troy ounce during Asian hours on Tuesday.

The AUD/USD pair gathers strength to near 0.7025 during the Asian trading hours on Tuesday, bolstered by hawkish Reserve Bank of Australia (RBA) rate expectations.

The USD/JPY pair trades with a positive bias for the third straight day on Tuesday, recovering further from an over one-month low, around the 156.00 neighborhood, touched last week.