Brown Brothers Harriman’s (BBH) Elias Haddad reports USD/JPY has moved above 159.00 on broad US Dollar (USD) strength but is expected to stay below 160.00 given intervention risks.

USD/JPY extends gains on Tuesday, rising for the seventh straight day as broad US Dollar (USD) strength and higher Oil prices linked to the US-Iran war continue to pressure the Japanese Yen (JPY).

USD/CAD moves higher on Tuesday and trades around 1.3760 at the time of writing, up 0.17% on the day, as the Canadian Dollar (CAD) struggles to fully benefit from higher Oil prices.

MUFG's Lee Hardman highlights a sharp GBP rebound, with GBP/USD back above 1.3400 as reports suggest Andy Burnham would keep existing United Kingdom (UK) fiscal rules.

The Australian Dollar (AUD) resumes its downtrend against the US Dollar (USD) on Tuesday, and is trading a few pips above one-month lows in the 0.7100 area at the time of writing.

BNY’s Bob Savage notes the Reserve Bank of Australia (RBA) sees elevated risks that inflation expectations drift higher, potentially requiring a deeper slowdown. Oil-driven price pressures and three rate hikes to 4.35% frame the backdrop for AUD/USD.

Brown Brothers Harriman’s (BBH) Elias Haddad notes GBP/USD has given back part of its gains as weaker United Kingdom (UK) labor market data dampens Bank of England (BoE) tightening prospects.

ING’s Francesco Pesole expects a sharp rise in Canada’s April Consumer Price Index (CPI), but sees limited pressure on the Bank of Canada (BoC) to hike.

USD/CHF trades higher around 0.7870 on Tuesday at the time of writing, gaining 0.35% on the day as the US Dollar (USD) benefits from renewed support linked to expectations of a more hawkish monetary policy stance in the United States (US).

DBS Group Research economist Ma Tieying highlights that expectations for a new Japanese supplementary budget are reviving so‑called Takaichi trades, with higher anticipated bond supply pushing Japanese Government Bond yields up and weighing on the Yen.

Societe Generale strategists note that USD/CAD has bounced after defending its January lows and is now gravitating toward the 200-day moving average, which they see as initial resistance.

The GBP/JPY cross attracts fresh sellers in the vicinity of mid-213.00s on Tuesday and erodes a part of the previous day's strong recovery gains from a one-and-a-half-week low.

Eurozone Trade Balance s.a. dipped from previous €7B to €3.5B in March

Eurozone Trade Balance n.s.a. came in at €7.8B, above expectations (€5.4B) in March

The Euro (EUR) resumes its bearish trend against the US Dollar (USD) on Tuesday, retreating to levels near 1.1630 at the time of writing, from Monday’s highs right above 1.1660.

Deutsche Bank analysts note Japan’s economy grew faster than expected in Q1 2026, supporting the case for further Bank of Japan (BoJ) rate hikes, yet the Japanese Yen (JPY) weakened slightly against the US Dollar (USD).

MUFG’s Lee Hardman notes that AUD/USD has fallen after the Australian Dollar (AUD) underperformed on softer China data and a cautious Reserve Bank of Australia (RBA).

ING’s Francesco Pesole argues that while the European Central Bank (ECB) must stay hawkish to contain long‑end yields, EUR/USD remains vulnerable.

The USD/JPY pair prolongs its uptrend for the seventh consecutive day – also marking the eighth day of a positive move in the previous nine – and advances to a nearly three-week top during the first half of the European session on Tuesday.

The New Zealand Dollar (NZD) is pulling back against the US Dollar (USD) on Tuesday, trading right above 0.5850 at the time of writing, down from Monday’s highs at 0.5880.

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.