The British Pound (GBP) gains traction against the Japanese Yen (JPY) on Tuesday, as the Yen weakens across the board following Japan’s parliamentary vote earlier in the day that confirmed Sanae Takaichi as the country’s new Prime Minister.

The Canadian Dollar (CAD) steadies against the US Dollar (USD) on Tuesday, with USD/CAD erasing earlier gains following stronger-than-expected September inflation data. At the time of writing, the pair is trading around 1.4030, easing from session highs.

EUR/CAD drops by 0.40% on Tuesday at the time of writing, trading around 1.6270, as the Canadian Dollar (CAD) appreciates following stronger-than-expected inflation data.

The AUD/USD pair is down over 0.5% to near 0.6480 during the European trading session on Tuesday.

USD/JPY trades around 151.90 on Tuesday, up 0.80% for the day at the time of writing, as investors react to the confirmation of Japan’s new government and the unveiling of its cabinet.

New Zealand Dollar’s rejection at the 0.5750-0.5760 resistance area on Monday has reactivated bearish pressure on the pair, pushing prices to the bottom of last week’s trading range, right above 0.5700, which is being tested at the moment.Positive comments from US President Trump, who showed hopes o

The outlook for New Zealand Dollar (NZD) is neutral now, and it is likely to trade in a range between 0.5685 and 0.5770, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD/JPY rallied by roughly 0.8% to 151.60. Unverified sources signal that Bank of Japan (BOJ) officials are of the view there’s no urgency to hike the benchmark rate next week. Interest rate futures quickly slashed BOJ October rate hike bets from 25% to under 10%, BBH FX analysts report.

Australian Dollar (AUD) is facing mild upward pressure and may edge higher to 0.6530; it is unlikely to break clearly above this level. In the longer run, for the time being, AUD is expected to trade in a sideways range of 0.6445/0.6555, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Silver (XAG/USD) is finally correcting lower. Market expectations that the US and China will de-escalate trade tensions are boosting the US Dollar’s recovery and hurting precious metals.

The Japanese Yen (JPY) remains under pressure this week as investors unwind safe-haven positions amid easing U.S. market concerns.

EUR/GBP remains steady below 0.8700 on Tuesday as investors turn cautious ahead of the UK inflation report due on Wednesday.

Pound Sterling (GBP) is likely to trade in a range between 1.3385 and 1.3435. In the longer run, if GBP breaks clearly above 1.3475, it could rise further to 1.3505, potentially testing 1.3530, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR/USD remains almost entirely driven by US credit/equity sentiment: here, further stabilisation could take EUR/USD all the way to 1.160. Levels below that will be harder to justify unless the US CPI on Friday comes in hotter than expected, ING's FX analyst Francesco Pesole notes.

AUD/JPY recovers its daily losses and continues its winning streak for the third successive session, trading around 98.30 during the European hours on Tuesday. The currency cross gains ground as the Japanese Yen (JPY) remains subdued after Sanae Takaichi became Japan’s Prime Minister.

The British Pound keeps a mild positive tone against the Yen on Tuesday, but has retreated from session highs at 202.80 to levels around 202.30 at the time of writing, which leaves the pair wavering without a clear direction, within the last week’s trading range.

The USD/INR pair ended Monday’s session with almost 0.1% losses to near 88.00. On Tuesday, Indian markets are closed due to Diwali Laxmi Pujan and will also remain closed on Wednesday on account of Balipratipada.

After a brief period of uncertainty, Sanae Takaichi was elected as Japan's first female prime minister early this morning. After she was elected chair of the LDP in early October, this seemed to be a foregone conclusion.

Canada releases inflation figures for September today. Headline CPI should have rebounded above 2.0%, but that won’t matter too much for the Bank of Canada as long as core measures (trim and median) remain anchored around 3.0%.

NZD/USD offers gains registered in the previous two successive sessions, trading around 0.5720 during the Asian hours on Tuesday.

The Pound Sterling (GBP) extends its losing streak against the US Dollar (USD) for the third trading day on Tuesday. The GBP/USD pair slides further to near 1.3370 as the US Dollar extends its recovery move amid growing expectations that the United States (US) and China will reach a trade deal soon.

EUR/USD moves lower for the third consecutive day on Tuesday, trading near the 1.1625 area at the time of writing, after having peaked at 1.1728 on Friday.

European Central Bank (ECB) Chief Economist Philip Lane said in a speech in Ireland on Tuesday that the unusual combination of sell-off in United States (US) treasury securities and a weakening US Dollar (USD) has made more difficult for Euro area banks to rely on their USD-denominated liquid assets

Here is what you need to know on Tuesday, October 21:

EUR/JPY halts its four-day losing streak, trading around 176.00 during the European hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bullish bias as the currency cross is positioned within the ascending channel pattern.

The USD/CAD pair gathers strength to near 1.4060 during the early European trading hours on Tuesday.

EUR/GBP gains ground after two days of losses, trading around 0.8690 during the Asian hours on Tuesday.

The GBP/JPY cross attracts fresh buyers following the previous day's two-way price moves and climbs closer to mid-202.00s during the Asian session on Tuesday.

The AUD/JPY cross trades in positive territory near 98.25 during the early European session on Tuesday. The Japanese Yen (JPY) edges lower against the Australian Dollar (AUD) as the dovish Sanae Takaichi is poised to become the first female Prime Minister.

The NZD/USD pair declines 0.27% to near 0.5725 during the Asian trading session on Tuesday.