Societe Generale analysts highlight that the Korean Won (KRW) has gained 12% versus the Dollar year-to-date, with USD/KRW falling from around 1560 in June to below 1380.

USD/CAD edges lower on Tuesday, with the Canadian Dollar (CAD) drawing support from a weaker US Dollar (USD) as traders also assess the latest tit-for-tat tariff measures between the United States (US) and Canada.

USD/JPY extends its sideways movement below the 160.00 mark on Tuesday, holding modest gains despite a softer US Dollar (USD). The weaker Greenback has failed to lift the Japanese Yen (JPY), which is underperforming its major peers. At the time of writing, the pair trades around 159.30.

USD/CAD trades around 1.3835 on Tuesday at the time of writing, down a modest 0.07% on the day. The pair lacks a clear direction as both the US Dollar (USD) and the Canadian Dollar (CAD) face headwinds.

The Pound Sterling consolidates near a six-month high of 1.3675 as Middle East headlines improve risk appetite, while investors await the release of crucial US economic data and the speech by Federal Reserve Chair Kevin Warsh at Jackson Hole. The GBP/USD trades at 1.3638, virtually unchanged.

AUD/USD steadies around the mid 0.7100s at the time of writing on Tuesday, clawing back most of the previous day's modest losses.

MUFG analysts Derek Halpenny and Abdul-Ahad Lockhart state that the Mexican Peso continues to benefit from low FX volatility and strong carry demand, with USD/MXN breaking below 17.00 for the first time since June 2024.

Scotiabank strategists Shaun Osborne and Eric Theoret note USD/JPY trading in a relatively flat range between 158.00 and the mid-159s as the Japanese Yen (JPY) underperforms most G10 currencies.

Scotiabank strategists Shaun Osborne and Eric Theoret report EUR/USD consolidating in the mid to upper 1.16s after stronger German IFO and Gross Domestic Product (GDP) data, which should bolster European Central Bank (ECB) confidence ahead of the September 10 meeting.

EUR/USD holds modest gains on Tuesday as the latest Middle East developments fail to trigger a strong market reaction, while the US Dollar (USD) struggles to recover from last week’s sell-off sparked by the US Treasury’s decision to increase buybacks of longer-dated government securities.

Scotiabank strategists Shaun Osborne and Eric Theoret describe USD/CAD trading close to their fair value estimate around 1.3842 as the Canadian Dollar (CAD) reacts to trade headlines and weaker Oil prices.

NZD/USD edges slightly higher on Tuesday and trades around 0.5965 at the time of writing, up 0.08% on the day.

Rabobank's Senior FX Strategist Jane Foley discusses the British Pound's (GBP) recent performance, noting it is currently the top G10 currency on a 1‑day view but only middling over longer horizons.

GBP/JPY extends its steady recovery on Tuesday and has now recouped almost all the losses triggered by the joint US-Japan intervention in late July. The intervention was aimed at curbing excessive weakness in the Japanese Yen (JPY) after USD/JPY climbed above 160 to a forty-year high.

ING’s Francesco Pesole highlights escalating US-Canada trade tensions, with new US tariffs on Canadian autos and parts announced for early next year.

USD/JPY trades around 159.30 on Tuesday at the time of writing, up 0.15% on the day.

The British Pound (GBP) remains practically flat for the second consecutive day against the US Dollar (USD), with markets on a “wait-and-see” stance, awaiting key US Inflation data on Wednesday and the Jackson Hole central bankers’ summit on Friday.

Brown Brothers Harriman’s (BBH) Elias Haddad reports EUR/USD is firmer but still below 1.1700 as Germany’s IFO survey rises to a one-year high, echoing Eurozone PMI and ZEW improvements.

The Euro (EUR) remains practically flat against the  US Dollar (USD) on Tuesday, trading above 1.1650, at a relatively short distance from the three-month highs, at 1.1710 hit last week.

ING’s Francesco Pesole observes EUR/GBP has slipped back to the 0.8550-0.8560 area as the earlier Euro premium fades and bond market calm returns.

EUR/JPY advances to around 185.85 on Tuesday at the time of writing, gaining 0.15% on the day.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann describe USD/JPY as locked in a range-trading phase, with a slightly firmer tone keeping the pair in a higher intraday band of 158.80–159.45.

DBS economist Radhika Rao observes that strong FCNR (B) swap inflows and higher FX reserves have not translated into significant Rupee gains, with USD/INR staying in a tight 95.50–96.00 range.

EUR/CAD extends its gains for the second consecutive day, trading around 1.6160 during the European hours on Tuesday. The currency cross remains stronger as the Euro (EUR) holds gains following the release of the German IFO business sentiment index data.

The GBP/JPY cross catches fresh bids on Tuesday and climbs to its highest level since July 30, around mid-217.00s during the first half of the European session.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann describe GBP/USD price action as range-bound intraday between 1.3615 and 1.3660, with momentum indicators neutral.

The British Pound (GBP) trades marginally higher against the US Dollar (USD) at around 1.3640 during the European trading session on Tuesday, even as the US Dollar Index (DXY) edges up, indicating strength in the British currency.

The USD/CAD pair is seen building on its recovery move from the 1.3730 region, or a three-month low touched last week, and gaining positive traction for the second straight day on Tuesday.

NZD/USD extends its losses for the second successive day, trading around 0.5950 during the European hours on Tuesday. The currency pair faces downward pressure as the US Dollar (USD) gains strength from safe-haven demand driven by rising geopolitical tensions.

Silver price (XAG/USD) extends its losses for the second successive day, trading around $68.40 per troy ounce during the European hours on Tuesday. However, Silver may regain ground as US government interventions in the bond market revive the debasement trade.