Commerzbank analyst Carsten Fritsch notes Gold has dropped over 13% this month, its steepest fall since 2008, as surging Oil prices forced markets to price out Fed rate cuts. Recently, both Gold and Oil have risen together.

Tensions between the United States (US) and Iran remain in focus after a series of comments from US Defense Secretary Pete Hegseth reported by Reuters, who said the coming days could be decisive in the conflict.

ING’s Bert Colijn notes that Eurozone inflation has jumped from 1.9% to 2.5%, driven entirely by higher energy prices, while core and food inflation continue to ease.

United States S&P/Case-Shiller Home Price Indices (YoY) came in at 1.2%, below expectations (1.3%) in January

United States Housing Price Index (MoM) in line with expectations (0.1%) in January

West Texas Intermediate (WTI) US Oil trades around $99.60 on Tuesday, down 2.30% on the day at the time of writing, ending a four-day winning streak as markets react to signs that geopolitical tensions in the Middle East could ease.

United States Redbook Index (YoY) up to 6.9% in March 27 from previous 6.7%

BNP Paribas analyzes US plans to ease bank liquidity rules to help restore the Federal Reserve’s (Fed) lender-of-last-resort function and potentially enable further balance sheet reduction.

Canada Gross Domestic Product (MoM) above forecasts (0%) in January: Actual (0.1%)

TD Securities remains constructive on AUD/NZD, viewing recent weakness as a correction within an ongoing uptrend.

Gold (XAU/USD) trades with an upside bias on Tuesday, on hopes of de-escalation in the Middle East conflict.

BNY’s Head of Markets Macro Strategy Bob Savage notes that the Indian Rupee (INR) faces continued pressure, recording the highest level of realized selling among Asia-Pacific (APAC) currencies in March.

South Africa Trade Balance (in Rands) rose from previous 9.31B to 36.92B in February

In a series of posts on Truth Social, US President Donald Trump criticized several US allies, including the United Kingdom (UK) and France, over their position following the recent US operation targeting Iran.

Commerzbank’s Volkmar Baur says Japan’s inflation outlook remains contained, with core prices still within the Bank of Japan’s (BoJ) 2% target range and second‑round effects not yet visible.

The Pound (GBP) is posting a fragile recovery attempt against the Japanese Yen (JPY) on Tuesday, following Monday’s sharp reversal. The pair found support at 210.00 on Monday, but recovery attempts remain limited below a previous support level around 211.00.

MUFG’s Senior Currency Analyst Lee Hardman notes the US Dollar is trading at its strongest levels since May last year as the Middle East conflict fuels concerns over a prolonged energy price shock that could hit global growth outside the US harder.

The Pound Sterling trades higher against its major currency peers, rising 0.17% to near 1.3200 against the US Dollar (USD), during the European trading session on Tuesday.

Societe Generale’s Kenneth Broux and colleagues note that EUR/GBP has bounced from February’s 0.8610 support and is now approaching its 200‑day moving average.

TD Securities’ Global Strategy Team notes the RBA hiked in March citing persistent inflation, strong demand, a tight labour market and higher Oil prices.

USD/CHF advances on Tuesday, rising 0.12% to trade near 0.8005 at the time of writing, extending a six-day winning streak. The pair is supported by a slight advantage for the US Dollar (USD) and relative weakness in the Swiss Franc (CHF) amid improving global risk appetite.

European Central Bank (ECB) Governing Council member Madis Müller said in an interview in Tallinn, reported by Bloomberg during European trading hours on Tuesday, that there could be an interest rate hike by the central bank in the April policy meeting.

Gold (XAU/USD) maintains a moderate bullish tone on Tuesday, extending its recovery from last week’s lows near $4,100, yet with resistance at the $4,600 area, holding upside attempts for now.

ING’s Chris Turner notes short-dated Euro swap rates have started to edge lower after a sharp spike, but real rate differentials have moved against EUR/USD. He argues this could be Euro-negative if the ECB refrains from an April hike while inflation expectations stay high.

India Trade Deficit – RBI dipped from previous -68.5B to -87.4B in 3Q

Italy Industrial Sales n.s.a. (YoY) declined to -1% in January from previous 3.6%

Italy Industrial Sales s.a. (MoM) fell from previous 0.5% to -0.3% in January

Rabobank’s Global Strategist Michael Every highlights that Brent has eased to around $111 and WTI to $102 despite a Kuwaiti tanker being hit, while European and African Oil markets are tightening as Asia fills supply gaps. He cites Bloomberg’s warning of $140 Oil if Red Sea shipping is hit again.

The EUR/USD’s tame recovery attempts seen earlier on Tuesday have been capped below 1.1490, before the release of softer-than-expected Eurozone Harmonised Index of Consumer Prices (HICP) figures.

Michael Pfister at Commerzbank notes that Norwegian Krone (NOK) has outperformed Swedish Krona (SEK) thanks to Norway’s energy-exporter status during the war-related commodity shock, despite similar rate expectations.