USD/CAD reverses its earlier losses on Tuesday as falling Oil prices weigh on the commodity-linked Canadian Dollar (CAD) following comments from US Treasury Secretary Scott Bessent on US-Iran talks.

BNY’s Geoff Yu highlights ongoing market focus on Japanese Yen intervention, noting authorities stepped back from action overnight as Tokyo seeks to preserve its International Monetary Fund (IMF) free‑floating status.

Rabobank’s Senior FX Strategist Jane Foley highlights that Japanese authorities benefited from the post-FOMC US Dollar (USD) drop, which eased pressure on the Japanese Yen (JPY).

GBP/JPY on Tuesday as the Japanese Yen (JPY) gives back part of its recent rally, which was driven by coordinated intervention from Tokyo and Washington.

The Euro (EUR) posts marginal gains against the US Dollar (USD) on Tuesday as Monday’s reversal from three-week highs at 1.1560 has been contained at 1.1500 so far.

Brown Brothers Harriman’s (BBH) Elias Haddad reports USD/JPY has fully retraced its prior slump and is testing key resistance at the 200-day moving average near 158.02.

The British Pound (GBP) edges higher against the US Dollar (USD) on Tuesday, reaching session highs above 1.3440 after finding support at the 1.3420 area earlier on the day.

USD/JPY trades around 157.95 on Tuesday at the time of writing, up 0.49% on the day.

The US Dollar (USD) shows marginal losses against the Swiss Franc (CHF) on Tuesday, as Dollar bulls struggle to find acceptance above 0.8100.

Rabobank’s Senior Market Strategist Benjamin Picton highlights coordinated action between the US Treasury and Japan’s Ministry of Finance (MoF) to defend the Japanese Yen (JPY), framing it as a potential “financial Fort Sumter” in capital markets.

EUR/JPY trades around 181.70 on Monday, up 0.44% on the day at the time of writing, supported by renewed optimism surrounding the Euro (EUR) and persistent weakness in the Japanese Yen (JPY).

ING’s Francesco Pesole expects New Zealand’s Q2 labour data to broadly match the Reserve Bank of New Zealand’s May projections, which implied one to two hikes in Q3. He favours a hike in September or October, with rising conviction for September.

The NZD/USD pair seesaws between tepid gains and minor losses through the first half of the European session on Tuesday, stalling the previous day's retracement slide from a two-month high – levels just above the 0.5900 mark.

MUFG’s Lee Hardman notes that the Japanese Yen has weakened modestly in Asia, with USD/JPY near its 200‑day moving average around 158.00 after recent joint intervention by Japan and the US.

The Euro (EUR) trades with caution at around Monday’s low of 1.1500 against the US Dollar (USD) during the European trading session on Tuesday.

United Overseas Bank’s (UOB) Quek Ser Leang reports AUD/USD briefly tested 0.7069 before retreating sharply to 0.6984, with the move seen as overdone. Intraday, the Australian Dollar is expected to range between 0.6980 and 0.7030.

The US Dollar (USD) stalls at the 1.4050 area against the Canadian Dollar (CAD) on Tuesday. The pair’s rebound from last week’s lows at the 1.3990 area failed to find follow-through above 1.4060, which leaves price action treading towards the peak of a descending triangle pattern.

Commerzbank’s Tatha Ghose notes Turkey’s July Consumer Price Index (CPI) slowdown to 31.7% year-on-year masks still-strong underlying price momentum, with smoothed headline and core inflation above 2% month-on-month.

The GBP/JPY cross builds on the previous day's recovery move from the vicinity of mid-209.00s, or the lowest level in nearly five months, and gains some follow-through positive traction on Tuesday.

The Japanese Yen (JPY) trims some gains against the US Dollar (USD) on Tuesday, with the USD/JPY pair picking up to the mid-157.00s from Monday’s lows at 155.23.

TD Securities strategists argue that recent Japanese Ministry of Finance (MoF) interventions and talk of joint United States (US)/Japan action have not changed the broader USD/JPY regime.

United Overseas Bank’s (UOB) Quek Ser Leang notes GBP/USD reversed after an overbought spike to 1.3506, closing lower at 1.3434. The strategist sees scope for the pullback to extend but mainly within a 1.3400–1.3475 range, with a sustained drop below 1.3400 unlikely.

The Euro (EUR) trades practically flat, a few pips below 0.8570 against the British Pound (GBP) on Tuesday, holding moderate gains after Monday's bounce from last week's lows at 0.8542.

The AUD/USD pair gains momentum around 0.7020 during the early European session on Tuesday. Easing tensions in the Middle East improves risk sentiment and provides some support to the Australian Dollar (AUD) against the US Dollar (USD).

Silver (XAG/USD) accelerates its recovery on Tuesday, reaching session highs above $59.00 at the time of writing, after bouncing from the $56.50 area on Monday.

United Overseas Bank’s (UOB) Quek Ser Leang highlights EUR/USD’s recent sharp rise and subsequent consolidation after a failed attempt to sustain gains above 1.1558. Intraday, the Euro is expected to trade between 1.1485 and 1.1540, while a close above 1.1565 could open the way toward 1.1600.

The USD/CAD pair gains ground to near 1.4050 during the early European session on Tuesday. Traders continue to weigh the developments surrounding US-Iran talks. The US JOLTS Job Openings data is due later on Tuesday. On Friday, the US and Canadian July employment reports will be the highlights.

The British pound (GBP) faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar (USD) during the European trading session on Tuesday.

USD/CHF moves little after two days of gains, trading around 0.8100 during the Asian hours on Tuesday. The currency pair may appreciate further as the Swiss Franc (CHF) faces headwinds from easing domestic inflation.

The Indian Rupee (INR) trades flat at around 95.33 against the US Dollar (USD) in the opening session on Tuesday. The Indian currency is expected to trade sideways as investors await the Reserve Bank of India’s (RBI) monetary policy announcement on Wednesday.