ING’s Carsten Brzeski highlights how upcoming state elections in Saxony-Anhalt, Mecklenburg-Vorpommern and Berlin could reshape German politics and indirectly affect the economy.

Societe Generale’s Dev Ashish argues that Mexico could benefit from tensions between the US and Canada, but warns that uncertainty around USMCA may limit the upside.

Rabobank's Senior FX Strategist Jane Foley highlights that recent UK data, including Q2 Gross Domestic Product (GDP), real output per head and the August composite Purchasing Managers' Index (PMI), point to resilient growth and improved consumer confidence.

Commerzbank’s Dr. Ralph Solveen notes that the German Ifo Business Climate Index rose from 86.7 to 88.8 in August, with both current conditions and expectations improving. He highlights stronger foreign demand, rising government spending and better sentiment as factors supporting growth.

Carsten Brzeski of ING underscores that the AfD’s rise to Germany’s largest party in polls introduces significant uncertainty for Eurozone policy.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight GBP/USD consolidating in a tight mid-1.36 range as a quiet data and Bank of England (BoE) calendar contrasts with softer yield spreads, which have eroded some fundamental support.

United States (US) President Donald Trump said the US Navy has cleared the Strait of Hormuz of mines, removing one of the supply risks that has kept the Oil market on edge.

Dev Ashish at Societe Generale highlights that the Trump administration’s threatened 50% tariff on Canadian vehicles and parts signals a broader push to redirect manufacturing investment to the US, challenging USMCA reliability.

US consumer sentiment loses some momentum in August, as the Conference Board’s Consumer Confidence Index recedes to 89.4 from July’s 90.2 (revised from 90.8).

United States New Home Sales (MoM) came in at 0.607M, below expectations (0.62M) in July

United States Richmond Fed Manufacturing Index below forecasts (7) in August: Actual (4)

Brown Brothers Harriman’s (BBH) Elias Haddad notes the Australian Dollar (AUD) largely ignored the Reserve Bank of Australia's (RBA) August Minutes, which reiterated Governor Michele Bullock’s warning that another rate hike is quite possible.

Private-sector hiring in the US has gained some pace in early August. According to the NER Pulse, the weekly companion to the ADP National Employment Report, companies added an average of 11.750K jobs per week in the four weeks ending August 8.

Societe Generale strategists expect Hungary's central bank, Magyar Nemzeti Bank (MNB), to cut rates by 25 bp to 5.50% today, with dovish July minutes and softer-than-expected inflation leaving room for further easing.

Michael Pfister at Commerzbank assesses the potential impact of higher US auto tariffs on Canada and the Canadian Dollar.

ING’s Francesco Pesole expects Australia’s July inflation data to show further moderation, consistent with no additional Reserve Bank of Australia hikes this year. He argues Governor Bullock is likely to stay hawkish, and even a small inflation surprise could lift AUD.

TradingKey - Os EUA divulgarão o Índice de Preços das Despesas de Consumo Pessoal (PCE) norte-americano de julho na quarta-feira, 26 de agosto, no horário da Costa Leste. Como um importante indicador

Commerzbank’s Tatha Ghose expects Hungary's central bank, Magyar Nemzeti Bank (MNB), to cut its base rate by 25bp to 5.50%, but stresses that guidance will matter more for the Forint. While headline inflation has surprised on the downside, core and services pressures and energy risks persist.

The German IFO Institute Business Climate Index improves again. The sentiment data arrives higher at 88.8 in August from 86.6 in July. The data also beats estimates of 87.2.

In a Reuters report on Tuesday, a Chinese Foreign Ministry spokesperson, Lin Jian, said that its cooperation with Iran is conducted within the framework of international law and should not be interfered with or disrupted when asked about new United States (US) sanctions related to Iran.

Commerzbank’s Michael Pfister analyses how the strong Swiss Franc (CHF) and an undervalued Chinese Yuan (CNY) are weighing on Switzerland’s export competitiveness.

Deutsche Bank strategists describe a cautious session for United States (US) equities, with the S&P 500 slipping as AI‑chip names sold off ahead of Nvidia’s earnings. While the equal‑weighted S&P approached record highs, headline indices were dragged lower by semiconductor weakness.

Germany Gross Domestic Product (YoY) above expectations (0.9%) in 2Q: Actual (1%)

Germany Gross Domestic Product w.d.a (YoY) rose from previous 0.9% to 1% in 2Q

Germany Gross Domestic Product (QoQ) came in at 0.3%, above expectations (0.2%) in 2Q

The Indian Rupee (INR) trades marginally higher against the US Dollar (USD) in the opening session on Tuesday.

USD/IDR halts its three-day losing streak, trading around 17,770 during the Asian hours on Tuesday. The pair appreciates as the Indonesian Rupiah (IDR) struggles under the weight of cautious market sentiment driven by persistent external pressures.

Japan Coincident Index: 118.5 (June) vs 118.2

Reserve Bank of Australia (RBA) Head of Domestic Markets, David Jacobs, said during the Asian trading session on Tuesday that the central bank aims to have a system that can flexibly supply whatever quantity the banking system demands, while keeping the cash rate close to the board’s target.

Japan Finance Minister (FM) Satsuki Katayama said in the Asian trading session on Tuesday that the government aims to balance fiscal sustainability and economic growth and communicate with markets on this stance.