The AUD/USD pair maintains its offered tone through the early European session on Tuesday and currently trades around the 0.7130-0.7125 region, just above the monthly low touched the previous day.

ING's Francesco Pesole notes that the Japanese Yen (JPY) remains weak even on softer US Dollar (USD) sessions, suggesting markets want to probe official tolerance.

Here is what you need to know on Tuesday, May 19:

The USD/CAD pair trades marginally higher to near 1.3750 during the European trading session on Tuesday.

The British Pound (GBP) drifts further from Monday’s highs near 1.3440 against the US Dollar (USD) on Tuesday, reaching session lows a few pips above 1.3400 at the time of writing.

The EUR/GBP cross attracts some dip-buyers on Tuesday, stalling the previous day's sharp retracement slide from the 0.8730 area, or the highest since April 7.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report EUR/USD has rebounded from 1.1607 but expects further gains to face strong resistance at 1.1685 in the near term.

The Indian Rupee (INR) holds onto its 10-day losses against the US Dollar (USD) in the opening session on Tuesday.

The EUR/USD pair trades 0.18% lower to near 1.1635 during the European trading session on Tuesday. The major currency pair faces selling pressure as the US Dollar (USD) resumes its upside journey amid firm expectations that the Federal Reserve (Fed) will not cut interest rates this year.

Silver price (XAG/USD) depreciates after registering 2.36% of gains in the previous day, trading around $76.30 during the Asian hours on Tuesday. Safe-haven demand for Silver fades as risk aversion eases after US President Donald Trump announced he was delaying a planned military strike on Iran.

The GBP/JPY cross trades in negative territory near 213.15 during the early European session on Tuesday. The stronger-than-expected Japan Gross Domestic Product (GDP) report for the first quarter (Q1) provides some support to the Japanese Yen (JPY) and acts as a headwind for the cross.

The USD/JPY pair trades with positive bias for the seventh straight day and is currently placed around its highest level in nearly three weeks, with bulls looking to extend the momentum beyond the 159.00 mark.

USD/CHF recovers its recent losses registered in the previous day, trading around 0.7860 during the Asian hours on Tuesday. The pair appreciates as the US Dollar (USD) draws support from expectations of a more hawkish outlook from the US Federal Reserve (Fed).

The New Zealand Dollar (NZD) resumes its downside journey against the US Dollar (USD) on Tuesday after a recovering move the previous day, trading 0.33% lower to near 0.5855 during the Asian trading session.

EUR/JPY inches lower after registering modest gains in the previous day, trading around 185.10 during the Asian hours on Tuesday. The currency cross declines as the Euro (EUR) weakens amid persistent uncertainty in the Middle East surrounding Iran.

The AUD/USD pair struggles to capitalize on the previous day's modest recovery from the 0.7120-0.7115 region, or over a two-week low, and meets with a fresh supply during the Asian session on Tuesday.

The EUR/USD pair trades in negative territory around 1.1645 during the early Asian trading hours on Tuesday. The Euro (EUR) softens against the US Dollar (USD) amid persistent uncertainty in the Middle East surrounding Iran.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Tuesday at 6.8375 compared to the previous day's fix of 6.8435 and 6.7909 Reuters estimate.

USD/JPY extends its gains for the seventh consecutive day, trading around 159.00 during the Asian hours on Tuesday. The currency pair appreciates as the Japanese Yen (JPY) remains subdued despite stronger-than-expected preliminary economic growth data from Japan.

The USD/CAD pair edges higher during the Asian session on Tuesday, stalling the previous day's modest pullback from the vicinity of a one-month peak, around the 1.3765 region, touched last week.

Cable bottomed at the 1.33 handle in Asian trade and ground higher through London and New York to close back above the 1.34 handle, a session range of roughly 150 pips and a textbook reclaim of the 200-day exponential moving average on the daily chart.

The Yen drifted toward the 159.00 zone through Monday's session and closed close to 158.80, marking a sixth straight losing day against a US Dollar that just refuses to peak. The price action itself was unremarkable, a 60-pip range on the day, but the trajectory is striking.

The Australian Dollar found a floor at the 0.7120 level in the early European session on Monday and ground its way back toward 0.7180 by mid-afternoon, helped along by a softer US Dollar and a modest improvement in the risk tone.

The Euro advances late in the North American session, up by 0.26% amid a volatile session characterized by geopolitical headlines and broad US Dollar weakness across the board. At the time of writing, the EUR/USD pair trades at 1.1654 after bouncing off daily lows of 1.1608.

The NZD/USD starts the session near the 0.5880 region on Tuesday as the US Dollar (USD) weakens amid shifting Federal Reserve (Fed) expectations and mixed developments surrounding negotiations between the US and Iran.

The British Pound extended its gains on Monday as political pressure over Prime Minister (PM) Keir Starmer increased. At the same time, Andy Burnham—the challenger to succeed Starmer—ruled out changing Chancellor Reeves’ fiscal rules if he becomes PM.

AUD/USD trades around 0.7160 on Monday at the time of writing, up 0.15% on the day, as the US Dollar (USD) corrects lower after its recent rebound.

The USD/JPY pair rises toward the 158.90 region as traders position ahead of Japan’s Q1 GDP release.

USD/CAD trades around 1.3740 on Monday at the time of writing, down modestly by 0.05% on the day. The pullback in the US Dollar (USD) against its major peers is weighing on the pair after signs of easing geopolitical tensions in the Middle East.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights that the global bond selloff is approaching levels where borrowing costs exceed nominal Gross Domestic Product (GDP) growth.