United States ADP Employment Change 4-week average climbed from previous 6.5K to 10.3K in January 24

BNY’s Head of Markets Macro Strategy Bob Savage highlights how falling JGB yields and stronger demand at Japan’s 5-year auction are reshaping views on fiscal dominance and FX risk, with the Japanese Yen appreciating since the February 8 election.

The publication of Canada’s January Consumer Price Index (CPI) figures on Tuesday will be the focus of attention.

The Euro (EUR) has reversed previous gains against the US Dollar (USD) and is trading lower for the second consecutive day on Tuesday.

Brown Brothers Harriman’s (BBH) Global Head of Markets Strategy Elias Haddad expects the RBNZ to keep the Official Cash Rate at 2.25% while updating its projections. With inflation still elevated and the labor market improving, he anticipates the bank will bring forward its projected hikes.

The US Dollar (USD) is trading within previous ranges against the Japanese Yen (JPY) on Tuesday.

EUR/GBP advances on Tuesday as the British Pound (GBP) weakens across the board following softer UK labour market figures, which strengthened the case for Bank of England (BoE) interest rate cuts.

Commerzbank’s Thu Lan Nguyen notes that Gold briefly traded above USD 5,000 per ounce before slipping back toward USD 4,900, struggling to extend gains.

Gold (XAU/USD) trades on the back foot on Tuesday as holiday-thinned volumes weigh on sentiment. At the time of writing, XAU/USD is trading at $4,935 after briefly dipping to a nearly two-week low at $4,859, down 1.10% on the day.

MUFG’s Head of Research Derek Halpenny highlights that the Australian Dollar remains the top G10 performer in February, supported by the RBA’s recent rate hike, but speculative long positioning has become stretched.

Silver price (XAG/USD) is down almost 3% near $74.00 during the European trading session on Tuesday. The white metal is under pressure ahead of the opening of the United States (US) markets after an extended weekend.

TD Securities expects UK January CPI to slow to 3.1% year-on-year, mainly on food and energy base effects, with core inflation seen unchanged at 3.2%. UK labour market data surprised negatively, with weaker job gains, higher unemployment and slowing wage growth.

EUR/JPY trades around 181.23 on Tuesday at the time of writing, down 0.40% on the day, after posting two consecutive days of gains.

ING’s Frantisek Taborsky expects the National Bank of Romania to keep rates at 6.50%, with inflation still high but projected to ease mid-year.

The Indian Rupee (INR) trades flat near Monday’s low at around 90.80 against the US Dollar (USD) during afternoon trading hours in India on Tuesday.

The GBP/USD pair claws back half of its early losses during the European trading session on Tuesday, but is still 0.23% down to near 1.3600.

The Euro (EUR) remains offered against the US Dollar (USD) for the second consecutive day on Tuesday. The pair’s recovery attempt from fresh one-week lows at 1.1828 remains capped below the 1.1850 line so far, amid a broader downtrend from 1.1925 highs last week.

German ZEW Survey - Economic Sentiment unexpectedly drops to 58.3 in February. Economists expected the sentiment data to have improved to 65.0 from 59.6 in January.

BNP Paribas analysts expect the Dollar to weaken, with the US economy still growing above potential in 2026 and inflation overshooting target due to tariffs. Analysts project the Fed Funds target range to remain at 3.5%-3.75% through 2026.

Eurozone ZEW Survey – Economic Sentiment below forecasts (45.2) in February: Actual (39.4)

Germany ZEW Survey – Current Situation came in at -65.9, below expectations (-65.7) in February

Germany ZEW Survey – Economic Sentiment came in at 58.3, below expectations (65) in February

The NZD/USD pair trades marginally higher to near 0.6040 during the European trading session on Tuesday. The Kiwi pair edges up as the New Zealand Dollar (NZD) ticks higher ahead of the announcement of the Reserve Bank of New Zealand’s (RBNZ) interest rate policy on Wednesday.

Commerzbank’s Thu Lan Nguyen discusses political concerns about Euro strength if it increasingly replaces Dollar as global reserve currency. She notes the Eurozone’s current account surplus could drive sustained appreciation, but past periods combined a strong Euro with respectable growth.

Silver prices (XAG/USD) fell on Tuesday, according to FXStreet data. Silver trades at $74.76 per troy ounce, down 2.33% from the $76.55 it cost on Monday.

South Africa Unemployment Total dipped from previous 8.007M to 7.836M in 4Q

South Africa Unemployment Rate (%) fell from previous 31.9% to 31.4% in 4Q

Brown Brothers Harriman’s (BBH) Global Head of Markets Strategy Elias Haddad expects Canadian inflation to ease in January, supporting a steady Bank of Canada policy rate at 2.25% for some time. The bank’s projections point to inflation near target in Q1.

Dow Jones futures inch lower 0.03% to around 49,550 during European hours on Tuesday. S&P 500 and Nasdaq 100 futures fall 0.16% and 0.48%, respectively, trading near 6,850 and 24,700 at the time of writing.

Italy Trade Balance EU down to €-2.447B in December from previous €-1.959B