Brown Brothers Harriman’s Elias Haddad writes that mixed Eurozone Consumer Price Index (CPI) data and a fully priced 25 bps European Central Bank (ECB) hike leave the Euro (EUR) under pressure but not collapsing.

Rabobank’s Senior FX Strategist Jane Foley focuses on the Swedish Krona (SEK), noting that SEK has been the weakest G10 currency since the Iran war but has recently outperformed on a one‑month view.

Commerzbank’s Michael Pfister argues that the Brazilian Real’s (BRL) strong run is likely to pause as fiscal expansion, renewed inflation pressures and a polarized election weigh on sentiment.

BNY’s Bob Savage highlights a strong JGB auction and falling yields as markets price a 76% chance of a Bank of Japan (BoJ) rate hike this month. Despite this, USD/JPY remains near 160 for a fourth day, with Japanese officials issuing repeated intervention warnings.

The Euro (EUR) remains vulnerable against the British Pound (GBP) on Tuesday, capped below 0.8650, consolidating losses from the previous two trading days.

TD Securities strategists focus on AUD/NZD after a sharp post-RBNZ selloff. They argue the start of the Reserve Bank of New Zealand (RBNZ) hiking cycle versus a peaking Reserve Bank of Australia (RBA) cycle should cap the prior AUD/NZD uptrend, but expect short-term consolidation.

The Euro (EUR) nudges higher against the US Dollar (USD) on Tuesday, although the pair has retreated from session highs at 1.1650, trading at 1.16440 at the time of writing.

UOB’s Quek Ser Leang and Lee Sue Ann describe EUR/USD as neutral after Monday’s reversal from 1.1606 to close at 1.1630. They expect the pair to consolidate intraday between 1.1610 and 1.1660, while the broader 1.1590–1.1685 range remains in force.

DBS Group Research’s Philip Wee highlights that USD/JPY is again trading near 160, keeping markets wary of potential Japanese authorities’ intervention and a possible 25 bps rate hike by the Bank of Japan (BoJ) to 1% at its June meeting.

Eurozone preliminary Harmonized Index of Consumer Prices (HICP) data for May has come in at 3.2% Year-on-year (YoY), as expected, higher than the April reading of 3%.

Eurozone Core Harmonized Index of Consumer Prices (YoY) above forecasts (2.4%) in May: Actual (2.5%)

Eurozone Core Harmonized Index of Consumer Prices (MoM) declined to 0.3% in May from previous 0.9%

Eurozone Harmonized Index of Consumer Prices (MoM) down to 0.1% in May from previous 1%

Eurozone Harmonized Index of Consumer Prices (YoY) meets forecasts (3.2%) in May

The USD/JPY pair extends its sideways consolidative price move through the first half of the European session on Tuesday and currently trades around the 159.70-159.75 region, or over a one-month top.

The New Zealand Dollar (NZD) is going through a nervous consolidation against the US Dollar (USD) on Tuesday. The pair is looking for direction around 0.5930, following a reversal from 0.6000 on Monday, as investors remain wary of risk, awaiting developments in the Middle East conflict.

UOB’s Quek Ser Leang and Lee Sue Ann note GBP/USD dipped to 1.3407 on Monday before rebounding to finish almost unchanged at 1.3456. Intraday, they see the British Pound (GBP) confined between 1.3425 and 1.3485.

The Japanese Yen (JPY) continues to face intense pressure as global energy shocks and geopolitical tensions weigh heavily on Japan's economic outlook.

The British Pound (GBP) keeps marching higher against an ailing Japanese Yen (JPY) on Tuesday.

Brazil Fipe's IPC Inflation climbed from previous 0.4% to 0.45% in May

The USD/CAD pair trades subduedly at around 1.3836 during the European trading session on Tuesday. The Loonie pair ticks lower as the US Dollar (USD) faces selling pressure despite uncertainty regarding whether the United States (US) and Iran will reach a deal soon.

Here is what you need to know on Tuesday, June 2:

Commerzbank’s Volkmar Baur reports that Australian exports fell 2% year-on-year in March, with iron ore shipments down about 18% due to a pricing dispute with a Chinese state-owned buyer.

UOB’s Quek Ser Leang and Lee Sue Ann notes USD/JPY climbed to 159.76 on Monday, closing at 159.65 with firmer upward momentum. Intraday, they see room for further gains but doubt a clear break above 159.95, with support at 159.55 and 159.40.

The Swiss Franc (CHF) is picking up against the US Dollar on Tuesday, trimming Monday’s losses amid a moderate improvement in market sentiment and steady Swiss Trade Balance figures. The USD/CHF pair trades at the 0.7850 area at the time of writing, down from 0.7884 highs in the previous day.

AUD/USD pares its latest losses from the previous day, trading around 0.7180 during the Asian hours on Tuesday.

Silver (XAG/USD) appreciates on Tuesday, retracing losses from the previous two trading days and reaching session highs near $77.00. News of a ceasefire in Lebanon has lifted market sentiment, although it remains fragile amid conflicting messages from Iran’s conflict.

The EUR/GBP cross trades on a flat note around 0.8645 during the early European trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of the preliminary reading of the Harmonized Index of Consumer Prices (HICP) from the Eurozone, which will be published later on Tuesday. 

The USD/JPY pair trades marginally higher to near 159.73 during the early European trading session on Tuesday. The pair edges up as the Japanese Yen (JPY) underperforms due to growing concerns regarding whether the Bank of Japan (BoJ) will raise interest rates in the near term.

The EUR/USD pair holds positive ground near 1.1635 during the early European trading hours on Tuesday. Hawkish stance of the European Central Bank (ECB) provides some support to the Euro (EUR) against the US Dollar (USD).