EUR/GBP gains on Tuesday as doubts over the UK’s fiscal outlook weigh on the British Pound (GBP) following Andy Burnham’s appointment as Prime Minister. At the time of writing, the cross trades around 0.8527, extending its gains for a fourth consecutive day.

Brown Brothers Harriman’s (BBH) Elias Haddad reports NZD/USD has rallied toward a seven-week high after New Zealand Q2 Consumer Price Index (CPI) surprised slightly on the upside versus consensus but came in just below the Reserve Bank of New Zealand's (RBNZ) projection.

Lee Hardman at MUFG highlights that the Pound has modestly recovered after losses following Andy Burnham’s appointment as UK Prime Minister, while long-dated gilts remain under pressure.

Tatha Ghose at Commerzbank highlights that Turkey’s market-based inflation expectations for 2026 and 12 months ahead have risen again, undermining confidence in disinflation.

The British Pound (GBP) is one of the weakest performers among major currencies, extending its reversal against the US Dollar for the fourth consecutive week.

The Japanese Yen (JPY) continues to trade on the defensive against the US Dollar (USD), lingering near year-to-date highs just below the 163.00 handle.

Brown Brothers Harriman’s (BBH) Elias Haddad notes the Canadian Dollar (CAD) is underperforming other high-beta currencies after the Trump administration announced a 50% tariff on nearly $20 billion of Canadian imports, excluding energy and some key goods.

The British Pound (GBP) is facing a notable loss of upward momentum across major currency pairs as UK political headlines and fiscal concerns re-emerge. 

The Australian Dollar (AUD) is showing one of the best performances among major currencies on Tuesday, appreciating to fresh one-month highs against the US Dollar, amid hopes of a ceasefire in Iran.

The Japanese Yen (JPY) keeps drifting lower on Tuesday, unfazed by the mild US Dollar’s weakness.

Societe Generale strategists note that dip buying in Sterling has kept GBP/USD trading above its 200-day moving average near 1.3403, even as Gilts remain under pressure.

MUFG’s Lee Hardman notes USD/JPY is holding just below year-to-date highs as a negative energy price shock weighs on the Japanese Yen. Rising Brent prices linked to US–Iran tensions and Houthi threats to shipping highlight global supply risks.

GBP/USD remains weaker for the fourth consecutive day, trading around 1.3430 during the European hours on Tuesday. The technical analysis of the daily chart indicates a prevailing bullish bias as the pair remains within the ascending channel.

United Overseas Bank’s (UOB) Quek Ser Leang judges GBP/USD price action as range-bound after an unexpected intraday spike and sharp drop. The pair is now expected to hold between 1.3400 and 1.3460 in the short term, with a broader 1.3385–1.3495 range for the coming weeks.

Eurozone ZEW Survey – Economic Sentiment came in at 23.4, above expectations (11.2) in July

Germany ZEW Survey – Economic Sentiment came in at 26.3, above expectations (18) in July

Germany ZEW Survey – Current Situation above forecasts (-77.8) in July: Actual (-77.6)

Silver (XAG/USD) is rallying, favoured by a mild US Dollar weakness on Tuesday.

Volkmar Baur at Commerzbank notes that new United States (US) tariffs of 50% on selected Canadian dairy, alcohol and automobile products under Section 338 will remove United States-Mexico-Canada Agreement (USMCA) exemptions.

Societe Generale’s Asian FX strategists, including Santosh Ejanthkar and Tanmay Purohit, report that the Indian Rupee (INR) is threatening to retest its record low near 96.9550/USD after Brent crude rose above $90.

The USD/CAD pair retreats around 25-30 pips from a one-week high set earlier this Tuesday, and hits a fresh daily low during the first half of the European session.

The Swiss Franc (CHF) has trimmed some losses against the US Dollar (USD) on Tuesday, as USD/CHF bulls failed to find acceptance above the 0.8100 area.

Here is what you need to know on Tuesday, July 21:

United Overseas Bank’s (UOB) Quek Ser Leang sees USD/JPY holding a firmer tone, with intraday action likely confined to a higher 162.30–162.70 range. Over the next few weeks, a broader consolidation between 161.30 and 163.00 is expected.

The EUR/JPY cross attracts some dip-buyers on Tuesday, snapping a three-day losing streak and stalling its recent retracement slide from the 186.00 mark or a nearly one-month high touched last week.

OCBC’s Sim Moh Siong and Christopher Wong flag renewed United Kingdom (UK) fiscal concerns under Prime Minister Andy Burnham as a headwind for the British Pound (GBP).

The Australian Dollar (AUD) outperforms its major currency peers, trading 0.28% higher to near 0.7018 against the US Dollar (USD) during the European trading session on Tuesday.

The Euro (EUR) trades practically flat, a few pips above 1.1400 against the US Dollar (USD) on Tuesday, halfway through the last four weeks horizontal range. A mild reversal on the US Dollar Index has provided some support.

The NZD/USD pair gains traction to around 0.5860 during the early European trading hours on Tuesday. Hotter New Zealand inflation data provide some support to the New Zealand Dollar (NZD) against the US Dollar (USD). The US ADP Employment report will be published later on Tuesday. 

The Euro (EUR) posts moderate losses against the  British Pound (GBP) on Tuesday, yet trading within recent ranges.