EUR/GBP holds firm on Tuesday, extending its recovery from the more than one-year low touched earlier this month as diverging monetary policy expectations between the European Central Bank (ECB) and the Bank of England (BoE), along with UK fiscal concerns, weigh on the British Pound (GBP).

NZD/USD trades around 0.5770 on Tuesday at the time of writing, slightly lower on the day. The New Zealand Dollar (NZD) remains pressured by the firm US Dollar (USD), which continues to benefit from safe-haven demand amid persistent geopolitical tensions.

The British Pound (GBP) extends its decline against the US Dollar (USD) to near 1.3277 during the European trading session on Tuesday, the lowest level seen in over three weeks.

TD Securities strategists expect the Reserve Bank of Australia’s (RBA) preferred core Consumer Price Index (CPI) to rise 0.9% q/q in Q2, matching consensus and up from 0.8% in Q1. This would lift annual core inflation to 3.7%, just below the RBA’s 3.8% projection.

The Euro (EUR) is failing to draw any significant support from the truce in the Middle East and the lower Oil prices and keeps heading south against the US Dollar (USD) on Tuesday. EUR/USD bears are testing fresh one-month lows below 1.1360, drawing near the year-to-date low of 1.1324.

The Australian Dollar (AUD) is down against its major currency peers, trading 0.35% lower at around 0.6965 against the US Dollar (USD) during the European trading session on Tuesday.

USD/JPY trades around 163.90 on Tuesday at the time of writing, up 0.11% on the day, as investors remain cautious ahead of the Federal Reserve’s (Fed) monetary policy decision on Wednesday and the Bank of Japan’s (BoJ) policy announcement on Friday.

The USD/CAD pair trades marginally lower to near 1.4113 during the European trading session on Tuesday. The Loonie pair edges down as the Canadian Dollar (CAD) outperforms its major currency peers.

MUFG’s Lee Hardman reports the Australian Dollar (AUD) has been the worst performing G10 currency overnight despite being the best performer year-to-date.

Here is what you need to know on Tuesday, July 28:

USD/CHF continues its winning streak for the seventh successive day, trading around 0.8190 during the European hours on Tuesday.

The British Pound (GBP) trades with caution at around 1.3300 against the US Dollar (USD) during the European trading session on Tuesday.

The Euro (EUR) consolidated gains, just below three-week highs against the British Pound (GBP) on Tuesday, trading sideways at the mid-range of the 0.8550s at the time of writing.

The Euro (EUR) falls to its monthly low at around 1.1362 against the US Dollar (USD) during the early European trading session on Tuesday. The major currency pair weakens as the US Dollar extends gains amid caution ahead of the Federal Reserve’s (Fed) monetary policy announcement on Wednesday.

The AUD/USD pair attracts some follow-through selling following the previous day's failure to find acceptance above the 0.7000 psychological mark and weakens to the 0.6970 area during the Asian session on Tuesday.

EUR/JPY holds ground after two days of losses, trading around 186.20 during the Asian hours on Tuesday. The currency cross is holding a bullish near-term bias as it trades above both the nine-period and 50-period Exponential Moving Averages (EMAs), keeping the broader uptrend supported.

The NZD/USD pair turns lower for the second consecutive day following a modest Asian session uptick to the 0.5785 region on Tuesday.

Silver price (XAG/USD) declines after registering nearly 0.5% gains in the previous day, trading around $57.50 per troy ounce during the Asian hours on Tuesday.

The Japanese Yen (JPY) trades flat against the US Dollar (USD) at around 163.75 during the Asian trading session on Tuesday. The USD/JPY pair struggles for direction as investors have sidelined ahead of the Federal Reserve’s (Fed) monetary policy announcement on Wednesday.

The USD/CAD pair enters a bullish consolidation phase near a two-week high, touched during the Asian session on Tuesday, and currently trades around 1.4120.

AUD/USD inches higher after recovering its daily losses, trading around 0.6990 during the Asian hours on Tuesday. Traders are keeping a close watch on scheduled remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock later in the day.

GBP/USD edges lower after opening at a bullish gap, remaining within positive territory and trading around 1.3290 during the Asian hours on Tuesday.

The EUR/USD pair is seen consolidating near the monthly trough and trading just above mid-1.1300s during the Asian session on Tuesday. Traders seem hesitant and await the outcome of a two-day FOMC policy meeting before placing aggressive directional bets.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Tuesday at 6.7928 compared to the previous day's fix of 6.7911.

The Japanese Yen trades a little firmer on Monday, with USD/JPY down 0.05% and sitting short of 164.00 after last week's high stalled a hundredth of a Yen beneath the figure.

The Australian Dollar trades just beneath 0.7000 on Monday, up around 0.1%, having covered less than 30 pips between its session high and its session low. For the better part of a fortnight the market has tried to make something of the 0.7000 area and given up each time.

British Pound Sterling trades beneath 1.3300 against the Dollar on Monday, roughly 0.3% lower on the day and back at ground it last held in the opening days of July. It gets there at the end of the strongest run of British data since the spring, which is the part worth sitting with.

NZD/USD trades near the 0.5790 area on Monday, struggling to extend its recovery despite modest weakness in the US Dollar (USD).

BNP Paribas strategists see Japan’s Gross Domestic Product (GDP) growth slowing to 0.8% in 2026 from 1.1% in 2025 as higher inflation and energy-related costs weigh on activity, partly offset by fiscal support and AI (Artificial intelligence) investment.

The EUR/JPY holds firm around 163.70 on Monday as the Japanese Yen strengthens, with investors cautious about opening fresh hawkish bets amid fears of intervention in the foreign exchange market.