Support
Gold eases from record high
Gold holds near record highs, supported by safe-haven demand and Fed rate cut expectations
Euro edges higher as German politics take center stage
Japanese yen gains on rate hike expectations
Currencies
The Japanese Yen (JPY) maintained its upward momentum against the U.S. dollar, dragging USD/JPY below 149.50 during the Asian session. The move comes after the latest Services Producer Price Index (PPI) report, which reinforced the view that higher wages are prompting businesses to adjust prices accordingly.
This aligns with strong consumer inflation data, further supporting speculation that the Bank of Japan (BoJ) may tighten monetary policy in the coming months. As rate hike expectations rise, the yen continues to attract strength, weighing on the USD/JPY pair.
The EUR/USD pair is gaining traction in Tuesday’s Asian session, climbing toward 1.0470 as investor sentiment around the Euro improved. The political landscape in Germany played a key role in this movement, with the conservative coalition—comprising the Christian Democratic Union (CDU) and Christian Social Union (CSU)—expected to reclaim leadership.
Commodities
Gold (XAU/USD) maintained a soft downward bias during early Tuesday trading, though overall price action suggested resilience near its record high reached in the previous session. Some investors scaled back bullish positions, citing overbought technical indicators, yet broader safe-haven demand remained intact.
Ongoing concerns about potential economic risks linked to U.S. trade policies, particularly regarding tariffs, continue to support demand for the precious metal. Additionally, growing market expectations for Federal Reserve rate cuts and weakness in the U.S. dollar are limiting downside pressures. Traders now turn their focus to upcoming U.S. economic data releases and Federal Reserve speeches for further guidance.
Energy
West Texas Intermediate (WTI) crude oil climbed to approximately $70.80 in early Asian trading, building on its recent recovery amid supply concerns.
Fresh U.S. sanctions, announced on Monday by the Treasury and State Departments, have heightened geopolitical uncertainty in the energy sector. The measures target key entities, including Iran’s national oil chief, potentially tightening near-term supply conditions. With global markets assessing the impact of these restrictions, oil prices remain well-supported as traders gauge potential supply disruptions.
