The GBP/USD pair loses ground to near 1.3415 during the Asian trading hours on Tuesday. The British Pound (GBP) edges lower against the Greenback amid UK political turmoil. Traders will take more cues from the UK employment report, which is due later on Tuesday. 

Japan's Economy Minister, Minoru Kiuchi, said on Tuesday that the government will respond swiftly while monitoring the economic impact of the Middle East conflict and price hikes on households and businesses.

The Reserve Bank of Australia (RBA) published the Minutes of its May monetary policy meeting this Tuesday, which showed that eight members saw case for rate hike as strongest and one member preferred to await further data. 

Australia Westpac Consumer Confidence rose from previous -12.5% to 83% in May

Japan Gross Domestic Product Deflator (YoY) above expectations (3.1%) in 1Q: Actual (3.4%)

The Japanese economy expanded 0.5% over the quarter in the first quarter (Q1) of 2026, the preliminary report published by the Cabinet Office showed on Tuesday. This reading followed a 0.3% growth recorded in Q4 of 2025 and beat market expectations of a 0.4% expansion.

Japan Gross Domestic Product (QoQ) registered at 0.5% above expectations (0.4%) in 1Q

Japan Gross Domestic Product Annualized above expectations (1.7%) in 1Q: Actual (2.1%)

Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter said that the central bank is worried higher energy costs will feed through to consumer prices quickly given the stretched state of the domestic economy, potentially creating a ‌significant shift in inflation expectations, Reuters repor

New Zealand Producer Price Index - Output (QoQ) above expectations (0.5%) in 1Q: Actual (0.8%)

New Zealand Electronic Card Retail Sales (YoY): 2% (April) vs previous 2.7%

New Zealand Electronic Card Retail Sales (MoM) fell from previous 0.7% to -1.3% in April

New Zealand Producer Price Index - Input (QoQ) came in at 1.4%, above forecasts (0.8%) in 1Q

United Overseas Bank’s Quek Ser Leang notes that USD/SGD has rebounded from its recent low near 1.2660 and upward momentum is starting to build. The pair is seen as broadly supported above 1.2735, with major support at 1.2660.

DBS Group Research economists led by Mo Ji assess recent China data, highlighting strong external trade but subdued domestic demand across consumption, investment and credit. They note resilient exports, soft industrial production and weak Fixed Asset Investment, especially in property.

United States Total Net TIC Flows dipped from previous $184.5B to $150.7B in March

United States Net Long-Term TIC Flows: $81.3B (March) vs $58.6B

MUFG’s Michael Wan highlights that Asian Emerging Markets (EM) currencies have weakened as higher US real yields, a stronger Dollar and elevated Oil prices weigh on sentiment.

Standard Chartered’s Tommy Wu raises Taiwan’s 2026 growth forecast to 9.5% from 7.6% after much stronger-than-expected Q1 GDP data. The AI supercycle and robust exports are seen as key drivers, while private consumption benefits from government cash handouts and a tech-led stock rally.

Japan’s Finance Minister Satsuki Katayama said on Monday that the volatility in Oil prices is affecting the forex market. Speaking to reporters after the first day of the G7 Finance Ministers meeting in France, she added that she is seeing speculative moves in the financial markets.

Alex Loo at TD Securities highlights that China’s April data were weak, with soft retail sales and falling investment, while exports and housing prices offered some relief.

UOB economist Jester Koh highlights a strong rebound in Singapore’s Non-oil Domestic Exports (NODX), led by electronics and pharmaceuticals, with petrochemicals slightly softer.

A White House official said that the US President Donald Trump will swear in Kevin Warsh as the next Fed Chairman on Friday, May 22nd, at the White House.

ING’s Lynn Song highlights that China’s April data showed broad-based weakness in domestic activity, with retail sales, industrial production and fixed asset investment all disappointing.

Standard Chartered’s Madhur Jha assesses how the effective closure of the Strait of Hormuz and the current energy shock could challenge AI optimism. The bank highlights near-term risks to semiconductor input supplies and longer-term risks to AI investment and demand.

United States NAHB Housing Market Index above expectations (35) in May: Actual (37)

Nordea's Chief Economist Helge J. Pedersen argues that rapidly rising defense spending in Europe represents a historic fiscal expansion that can support GDP in the short term but raises medium‑term risks.

TD Securities strategists reiterate their view that the Reserve Bank of Australia (RBA) will likely need to raise the cash rate to 4.60% in this cycle. They note that the May policy statement suggests hesitation to hike in June, and expects the RBA minutes to clarify this.

Commerzbank’s Dr. Henry Hao notes that China’s post-Q1 recovery lost momentum in April, with industrial output at a three-year low and fixed-asset investment shrinking. Domestic consumption remains fragile as retail sales barely grew and youth unemployment rose.

Deutsche Bank’s Sanjay Raja expects the United Kingdom (UK) labour market to remain weak after a surprise drop in the jobless rate driven by self-employment.