The British Pound (GBP/GBP) edges lower against the Japanese Yen on Tuesday, as renewed political uncertainty in the UK weighs on the Pound. At the time of writing, GBP/JPY is trading around 212.00, down nearly 0.70% on the day.

HSBC analysts argue that Takaichi’s strong mandate brings both upside and downside risks for JPY via fiscal choices and market perceptions.

EUR/JPY trades around 184.80 on Tuesday at the time of writing, down 0.50% on the day, as the strength of the Japanese Yen (JPY) continues to weigh on the cross despite Japan’s potentially expansionary political environment.

TD Securities analysts note that Australian consumer and business surveys softened, with Westpac Consumer Sentiment falling for a third month after the recent RBA rate hike. Most respondents expect higher rates, yet analysts do not see the RBA reacting to this data.

Brazil IPCA Inflation came in at 0.33%, above expectations (0.32%) in January

ING analysts Chris Turner and Francesco Pesole note that a previous Sterling short squeeze had pushed EUR/GBP near 0.86, but UK politics and the Bank of England have turned the bias higher. Further pressure on Prime Minister Starmer around upcoming elections could hurt Sterling and Gilts.

The US Dollar (USD) is trading lower against the Japanese Yen (JPY) for the second consecutive day on Tuesday. The pair changes hands at one-week lows right above 155.00, down from 157.66 highs on Monday, as investors brace for December’s US Retail Sales report.

The Aussie Dollar (AUD) has pulled back from fresh three-year highs near 0.7100 against the US Dollar, but remains steady above 0.7670 so far, as renewed US labour market woes are boosting hopes that the Federal Reserve (Fed) will have to cut losses more than projected.Investors' concerns about the

NZD/USD corrects by 0.15% on Tuesday and trades around 0.6050 at the time of writing, as investors digest mixed macroeconomic signals from New Zealand while remaining focused on shifts in US monetary policy expectations.

Germany 5-y Note Auction fell from previous 2.47% to 2.4%

GBP/USD remains subdued after two days of losses, trading around 1.3680 during the European hours on Tuesday. The technical analysis of the daily chart points to a persistent bullish bias, as the pair trades within an ascending channel.

The US Dollar (USD) is trading sideways, within a narrow range around 0.7650 against the Swiss Franc (CHF) on Tuesday, consolidating losses after selling off 1.6% over the two previous trading days, as investors shift their focus to the US Retail Sales Report due later on the day.

MUFG Senior Currency Analyst Lee Hardman notes that the Pound has traded volatile as UK political risks flared, with EUR/GBP spiking to 0.8742 before easing back toward 0.8700.

HSBC notes how Prime Minister Sanae Takaichi’s supermajority reshapes Japan’s policy backdrop and implications for the Japanese Yen and USD/JPY.

The Euro (EUR) is trading higher for the second consecutive day against the British Pound (GBP) on Tuesday.

Silver price (XAG/USD) depreciates after two days of gains, trading around $81.70 per troy ounce during the European hours on Tuesday.

The Euro (EUR) is practically flat against the US Dollar (USD) on Tuesday, trading at 1.1906 at the time of writing, holding steady at one-week highs following a two-day rally. The Greenback remains on its back foot ahead of a string of key US economic data releases, while a favourable risk sentime

The Danske Research Team highlights that EUR/GBP saw a reverse V‑shaped price action during the previous session. The move came as UK politics returned to focus, with pressure on Prime Minister Keir Starmer to resign after senior aides stepped down.

MUFG’s Senior Currency Analyst Michael Wan notes that the US Dollar weakened, with USD/JPY dropping below 156 and expected further downside over time. The outlook is tied to potential Bank of Japan rate hikes and Japan’s fiscal sustainability focus.

Here is what you need to know on Tuesday, February 10:

The GBP/JPY cross attracts sellers for the second straight day and slides back closer to the overnight swing low during the early part of the European session on Tuesday. Spot prices, however, remain confined in a one-week-old range and currently trade just above mid-212.00s.

Commerzbank’s Michael Pfister discusses Euro strength and its implications for EUR/USD and ECB policy. Pfister expects stronger ECB reactions only if Euro appreciation becomes significantly more pronounced.

The USD/CAD pair trades on a flat note near 1.3560 during the early European session on Tuesday. Nonetheless, a shift in the Bank of Canada (BoC) monetary policy expectations could provide some support to the Canadian Dollar (CAD) against the Greenback.

The AUD/USD pair attracts some sellers on Tuesday, eroding part of the previous day's strong move up to the 0.7100 mark or a three-year high and snapping a two-day winning streak.

UOB analysts Quek Ser Leang and Lee Sue Ann note that EUR/USD’s sharp rally has left the pair overbought intraday, but further gains toward 1.1945 are possible before consolidation.

The EUR/JPY cross trades in negative territory around 185.00 during the early European session on Tuesday. The Japanese Yen (JPY) gathers strength against the Euro (EUR) after Prime Minister Sanae Takaichi romped to a landslide victory in Japan's snap election on Sunday.

The EUR/USD pair loses ground to around 1.1905, snapping the two-day winning streak during the early European trading hours on Tuesday.

USD/CHF holds ground after two days of losses, trading around 0.7670 during the Asian hours on Tuesday.

The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling (GBP) edges lower against the US Dollar (USD) amid political risk in the United Kingdom (UK) and rising expectations of near-term Bank of England (BoE) rate cuts. 

USD/INR loses ground on Tuesday after two days of gains. However, the Indian Rupee (INR) struggled against the US Dollar (USD) in the previous session, with bankers citing hedging activity and routine local flows.