EUR/USD remains close to session highs above 1.1740 at the time of writing, after rallying beyond 1% over the last two days. An upbeat ZEW Economic Sentiment Survey and the US Dollar (USD) reversal followed.

The New Zealand Dollar appreciates for the third consecutive day against a weaker US Dollar on Tuesday.

EUR/GBP trades around 0.8720 on Tuesday at the time of writing, up 0.60% on the day, with the Euro (EUR) outperforming the Pound Sterling (GBP) after a series of supportive macroeconomic releases from the Eurozone.

Gold (XAU/USD) hits yet another record high on Tuesday, climbing above the $4,700 psychological mark as rising geopolitical tensions drive strong safe-haven demand. At the time of writing, XAU/USD trades around $4,730, up nearly 1.25% for the day.

The US Dollar is trading lower for the second consecutive day against its Canadian counterpart on Tuesday. The pair has dropped about 0.6% over the last two days, extending its reversal from 1.3928 highs to session lows at 1.3820 so far.

The Pound Sterling (GBP) jumps to near 1.3490 against the US Dollar during the European trading session on Tuesday. The GBP/USD pair extends Monday's gains as “Sell America” trade intensifies due to ongoing disputes between the United States (US) and the European Union (EU) over Greenland.

The USD/JPY pair is down 0.2% to near 157.80 during the European trading session on Tuesday. The pair is under pressure as the US Dollar (USD) underperforms across the board amid ongoing disputes between the United States (US) and the European Union (EU) over Greenland’s sovereignty.

Switzerland faces mild deflationary pressure as December PPI fell -1.8% y/y and January CPI barely stayed positive at 0.1%, keeping markets alert to potential SNB rate cuts.

The Japanese Yen (JPY) underperformed while government bonds plunged following Prime Minister Takaichi’s announcement of a snap election and a pro-stimulus agenda including a two-year food tax break, BBH FX analysts report.

The Pound pulled back from session highs at the 213.50 area against the Japanese Yen on Tuesday, following mixed UK employment figures. Still, downside attempts remain contained above 212.30, leaving the pair in no man’s land.

The British pound rose versus the US dollar but slipped against the euro as UK labor market data showed persistent weakness, with job losses accelerating in December and over 2025.

US-EU trade tensions are weighing on financial market risk sentiment. Global equity and bond markets are selling off while gold prices hit new record highs. US Dollar (USD) is behaving unusual for a risk off phase, as it’s down against most major currencies, notably Euro (EUR).

The AUD/USD pair trades 0.25% higher to near 0.6730 during the European trading session on Tuesday. The Aussie pair gains as the US Dollar (USD) underperforms its peers amid disputes between the United States (US) and the European Union (EU) over the future of Greenland.

Elevated household saving rates across Europe are dampening consumption growth, with potential GDP gains of 1–2% if savings revert to pre-pandemic levels, NOMURA's economists report.

Bank of England (BoE) Governor Andrew Bailey stated that geopolitical uncertainty is a significant consideration in the central bank’s assessment of financial stability, warning that markets may be underestimating the risks associated with global political tensions and institutional challenges, acco

The US Dollar (USD) has softened as investors anticipate that tariffs tied to President Trump’s Greenland plans may be delayed or cancelled, easing immediate trade tensions.

The latest balance of payments data from the euro area (covering November) point to an increasingly positive environment for Euro (EUR), with broadly improving inflows from overseas investors and a gradual slowdown in overseas investments by residents, NOMURA's economist Dominic Bunning reports.

USD/CHF trades in negative territory for a third consecutive day and hovers around 0.7910 on Tuesday during the European session, down 0.80% on the day at the time of writing.

UST bond yields are higher and no doubt yields in the UK and Germany will open higher later this morning following the huge sell-off of super-long JGBs in Japan.

The Indian Rupee (INR) extends its losing streak for the fourth trading day against the US Dollar (USD) on Tuesday.

Eurozone ZEW Survey - Economic Sentiment jumps sharply to 40.8 in January, beating estimates of 35.2 and December's reading of 33.7.

Eurozone ZEW Survey – Economic Sentiment above forecasts (35.2) in January: Actual (40.8)

Eurozone Construction Output w.d.a (YoY) down to -0.8% in November from previous 0.5%

The re-opening of US markets after yesterday's public holiday has seen the dollar a little softer across the board. USD/JPY is the exception – see below. The S&P 500 looks set to reopen at around 1.5% lower than Friday's close.

Germany ZEW Survey – Economic Sentiment above forecasts (50) in January: Actual (59.6)

Germany ZEW Survey – Current Situation came in at -72.7, above forecasts (-75.5) in January

Eurozone Construction Output s.a (MoM) down to -1.1% in November from previous 0.9%

Spain 9-Month Letras Auction down to 1.998% from previous 1.999%

Spain 3-Month Letras Auction: 1.954% vs previous 1.974%

Copper rebounded toward $13,000/t as a weaker dollar and China meeting its GDP target lifted sentiment in industrial metals, ING's commodity experts Ewa Manthey and Warren Patterson note.