The British Pound (GBP) pushes higher against the Japanese Yen (JPY) on Tuesday, supported by broad-based Yen weakness as political developments in Japan weigh on sentiment.

Russia Central Bank Reserves $ up to $763.9B from previous $752.6B

EUR/USD is trading at 1.1660 at the time of writing, after moving back and forth between 1.1650 and 1.1675 during the Asian ans European Markets on Monday.

The US Bureau of Labor Statistics (BLS) will publish December’s Consumer Price Index (CPI) report on Tuesday at 13:30 GMT. The report is expected to show that prices remained broadly stable in the last month of 2025.

The Australian Dollar remains trading within previous ranges against its US counterpart, as the pair’s recovery from the 0.6660 area was capped at 0.6725 on Monday before pulling back to 0.6700.

The Japanese Yen (JPY) fell 0.5% to 158.91 per US Dollar (USD), hitting its weakest level since July 2024, as speculation of a snap election under PM Takaichi triggered renewed selling, ING's FX analyst Francesco Pesole notes.

JPY and JGB slide, while the Nikkei rallies as Japan election talks fuel bets of more government stimulus.

Markets have started to rethink some of their USD-bearish Fed independence bets, following several pushbacks against the Department of Justice's probe into Jerome Powell from Republican lawmakers.

US Dollar (USD) has stabilized following yesterday’s dip triggered by heightened political threat to the Fed’s independence.

EUR/GBP trades in a tight range around 0.8660 on Tuesday, virtually unchanged on the day at the time of writing.

EUR/USD missed an opportunity to break above 1.1700, with the euro lacking momentum while the US Dollar (USD) could strengthen further on upcoming inflation data, ING's FX analyst Francesco Pesole notes.

The Pound Sterling (GBP) holds onto Monday’s gains around 1.3470 against the US Dollar (USD) during the European trading session on Tuesday. The GBP/USD pair trades firmly ahead of the United States (US) Consumer Price Index (CPI) data for December, which will be published at 13:30 GMT.

The AUD/JPY pair trades 0.3% higher to near 106.46 during the European trading session on Tuesday. The pair jumps higher as the Japanese Yen (JPY) underperforms its peers amid uncertainty surrounding Japan’s political outlook.

Gold (XAU/USD) posts moderate losses in a calm trading session on Tuesday, pulling back from all-time highs at $4,630, but still above previous highs in the $4,560 area.

US Dollar (USD) is likely to trade in a range between 6.9620 and 6.9820. In the longer run, USD remains neutral but is now expected to trade in a lower range of 6.9520/6.9900, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Copper prices rose toward record levels as ongoing supply concerns coincide with strong US imports ahead of potential tariffs, keeping markets on edge, ING's commodity experts Ewa Manthey and Warren Patterson note.

USD is likely to continue to rise; the level to watch is 158.90, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Gold (XAU/USD) treads water on Tuesday as the market shifts into wait-and-see mode ahead of the release of US inflation data at 13:30 GMT. At the time of writing, XAU/USD trades around $4,585, consolidating just below Monday’s record peak near $4,630.

Gold surged to fresh record highs above $4,600 an ounce as geopolitical tensions, fiscal uncertainty, and strong central bank buying fueled demand for safe-haven assets, ING's commodity experts Ewa Manthey and Warren Patterson note.

New Zealand Dollar (NZD) could rise further; overbought conditions could limit any gains to a test of 0.5785. In the longer run, for the time being, NZD is likely to trade in a range between 0.5720 and 0.5805, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Speculation that Prime Minister Takaichi may call a snap election has pushed Japanese government bond yields higher and sent the yen weaker, driving USD/JPY back toward 159.

Australian Dollar (AUD) is likely to trade in a range of 0.6685/0.6730. In the longer run, the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The USD/JPY pair revisits its one-and-a-half-year high of 159.00 during the European trading session on Tuesday.

European Natural Gas prices surged, with TTF rising 6.6% to above €30/MWh as colder weather boosted heating demand and unrest in Iran raised concerns over LNG and pipeline supplies, ING's commodity experts Ewa Manthey and Warren Patterson note.

Sharp rebound has scope to test 1.3495 before a pullback can be expected; 1.3520 is not expected to come under threat. In the longer run, GBP is likely in a range-trading phase between 1.3390 and 1.3520, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Ireland Retail Sales (YoY) increased to 2.5% in November from previous 2.1%

Oil prices rallied for a third consecutive day yesterday, with ICE Brent trading close to US$64/bbl. The prompt ICE Brent timepsread has also strengthened through January amid growing supply risks, ING's commodity experts Ewa Manthey and Warren Patterson note.

Ireland Retail Sales (MoM): 0.5% (November) vs -0.5%

United States NFIB Business Optimism Index in line with expectations (99.5) in December

Euro (EUR) is likely to trade in a range between 1.1640 and 1.1700. In the longer run, weakness in EUR from early last week has stabilized; for the time being, it is likely to consolidate between 1.1615 and 1.1730, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.