USD/JPY trades just beneath 159.50 on Tuesday August 11, effectively unchanged inside a 47-pip range, wedged between a reclaimed 200-day moving average near 158.00 and a declining 50-day near 160.50.

The Mexican Peso is poised to end Tuesday’s session with solid gains of 0.32% against the US Dollar as money markets await the release of the US July inflation figures, while the USD/MXN trades at 17.08, hitting a fresh 25-month low, a level last seen in June 2024.

GBP/USD trades near 1.3500 on Tuesday August 11, a shade lower on the session and inside a range of barely 25 pips, with nothing British on the calendar to account for either the level or the calm.

The single currency registers minimal losses against the Greenback on Tuesday as traders and market participants prepare for the release of the US Consumer Price Index (CPI) on Wednesday, which could set the path for the future of US monetary policy.

Scotiabank strategists Shaun Osborne and Eric Theoret observe that the British Pound (GBP) is consolidating gains near the top of its one-month and multi-month ranges, with price action closely tied to fading downside risk reversals.

The Japanese Yen (JPY) trades flat above 159.00 on Tuesday after several days of US Dollar (USD) strength following the intervention that briefly boosted the Yen. The pair has retraced most of its sharp intervention-driven decline, facing pressure from elevated Oil prices and a firm US Dollar (USD).

USD/CHF trades with a positive bias on Tuesday as the US Dollar (USD) consolidates its recent gains ahead of Wednesday’s US Consumer Price Index (CPI) data. Price action has stabilized above the 50-day Simple Moving Average (SMA) following a sharp pullback from above 0.8200 in late July.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight that the Euro (EUR) is steady, extending a tight consolidation around the mid-1.15s after the Dollar’s late-July Fed-driven decline.

NZD/USD trades around 0.5880 on Tuesday at the time of writing, virtually unchanged on the day with a 0.03% decline.

The Pound Sterling holds firm against the Greenback on Tuesday following the release of US jobs data, which was softer than expected, while investors await US inflation data and UK data releases on Thursday. The GBP/USD trades at 1.3508, nearly unchanged.

Rabobank's Senior FX Strategist Jane Foley discusses USD/JPY ahead of the United States (US) July Consumer Price Index (CPI) release, highlighting how softer US inflation could weaken the Dollar and lower the odds of another break above USD/JPY160.

USD/CAD trades under pressure on Tuesday, staying on the back foot for a third straight day. However, the pair lacks follow-through selling as the US Dollar (USD) holds firm ahead of Wednesday’s US Consumer Price Index (CPI) data.

Societe Generale’s Kenneth Broux highlights ongoing pressure on the Australian Dollar after the RBA removed one projected rate hike, keeping the cash rate at 4.35% and projecting the policy rate around 4.40% through 2028.

EUR/GBP is trading on the lower end of its weekly range near the 0.8540 price zone on Tuesday.

Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) is supported by higher Oil prices and Friday’s strong Canadian jobs data versus weaker US labour figures.

Commerzbank's Chief Economist Dr. Jörg Krämer expects EUR/USD to recover once the Iran conflict eases and to grind higher over the coming quarters.

Brown Brothers Harriman’s (BBH) Elias Haddad explains USD/JPY has retraced half of its post-intervention drop, with US–Japan rate spreads already narrowing in favor of the Japanese Yen (JPY).

AUD/USD trades moderately higher above the 0.7060 price region after the Reserve Bank of Australia (RBA) left interest rates unchanged at 4.35% in a unanimous decision at the August monetary policy decision.

ING’s Chris Turner reports that the Reserve Bank of Australia kept rates at 4.35%, while Governor Sandra Bullock delivered a hawkish message, stressing upside inflation risks and revealing that a hike was discussed. Short-dated Australian yields reversed higher.

EUR/USD fluctuates on Tuesday, holding within the range seen over the past week. At the time of writing, the pair trades around 1.1546, virtually unchanged on the day.

Chris Turner at ING observes that EUR/USD realised volatility continues to decline, with one-year volatility matching lows from November 2024.

USD/JPY treads water on Tuesday as the Japanese Yen (JPY) struggles to find its footing, facing headwinds from a firmer US Dollar (USD) and elevated Oil prices. At the time of writing, the pair trades around 159.24 after hitting an intraday low of 158.92.

Brown Brothers Harriman’s (BBH) Elias Haddad reports the Reserve Bank of Australia (RBA) delivered a less hawkish hold, keeping rates at 4.35% and judging policy “somewhat restrictive” as the labor market has eased more than expected.

The Swiss Franc trades practically flat against the US Dollar (USD) on Tuesday, consolidating halfway through last week’s trading range.

The GBP/USD pair trades marginally lower at around 1.3500 during the European trading session on Tuesday.

HSBC strategists discuss the sharp post-intervention drop following coordinated action by Japan’s Ministry of Finance and the US Treasury. They argue that joint intervention is more effective than unilateral moves but unlikely to change the broader trend without improved Japanese fundamentals.

EUR/USD trades around 1.1535 on Tuesday at the time of writing, posting a modest 0.06% decline on the day.

The New Zealand Dollar (NZD) nudges lower against a firmer US Dollar (USD) for the second consecutive day on Tuesday, as doubts about the fate of the US-Iran peace negotiations hurt market confidence and boost Oil prices higher.

Rabobank's Senior Macro Strategist Bas van Geffen reports that the Australian Dollar (AUD) slipped briefly after the RBA left its policy rate unchanged, as markets interpreted the statement and downgraded growth and inflation forecasts as dovish.

The Australian Dollar (AUD) attracts bids against its major currency peers after the Reserve Bank of Australia’s (RBA) monetary policy decision, but is still trading marginally lower at around 0.7050 against the US Dollar (USD) during the European trading session on Tuesday.