ING’s Francesco Pesole warns that USD/JPY short-dated implied volatility is not reflecting renewed intervention risk as the pair retests 160.0. Markets seem to expect the Bank of Japan’s June meeting to help cap the pair.

Singapore Manufacturing PMI climbed from previous 50.7 to 51 in May

DBS Group Research’s Philip Wee argues that FX Majors remain range-bound as markets digest shifting narratives around Middle East tensions and the upcoming Fed leadership transition.

United States Redbook Index (YoY) remains at 9% in May 29

Brown Brothers Harriman’s Elias Haddad writes that mixed Eurozone Consumer Price Index (CPI) data and a fully priced 25 bps European Central Bank (ECB) hike leave the Euro (EUR) under pressure but not collapsing.

Beth Hammack, President of the Federal Reserve Bank of Cleveland, struck a distinctly hawkish tone on Tuesday, warning that persistent inflation risks may eventually require a policy response.Key Quotes

Rabobank’s Senior FX Strategist Jane Foley focuses on the Swedish Krona (SEK), noting that SEK has been the weakest G10 currency since the Iran war but has recently outperformed on a one‑month view.

Gold (XAU/USD) moves higher on Tuesday but remains within a two-week range as traders track rapidly changing headlines from the Middle East. At the time of writing, XAU/USD trades around $4,530, up nearly 1% on the day.

Commerzbank’s Michael Pfister argues that the Brazilian Real’s (BRL) strong run is likely to pause as fiscal expansion, renewed inflation pressures and a polarized election weigh on sentiment.

ING’s Warren Patterson and Ewa Manthey report that EU Natural gas storage has risen above 40% but remains well below the five-year average. With peace talks stalling and LNG disruptions from the Middle East, they see rising risks of tighter supply into winter.

TD Securities strategists have cut their Gold forecasts for the next two quarters as higher inflation expectations from supply shocks lift yields and keep the Dollar firm, with markets even pricing a potential Fed hike in late 2026.

Swiss National Bank (SNB) Chairman Martin Schlegel said during the European trading session on Tuesday that the central bank is now more ready to intervene against one-way appreciating moves in the Swiss Franc (CHF).

Silver price (XAG/USD) trades 1.85% higher to near $76.30 during the European trading session on Tuesday. The white metal gains as oil prices have corrected, while uncertainty surrounding the United States (US)-Iran remains intact.

BNY’s Bob Savage highlights a strong JGB auction and falling yields as markets price a 76% chance of a Bank of Japan (BoJ) rate hike this month. Despite this, USD/JPY remains near 160 for a fourth day, with Japanese officials issuing repeated intervention warnings.

The Euro (EUR) appreciates higher against the US Dollar (USD) on Tuesday, although the pair remains capped below 1.1650.

Brown Brothers Harriman’s Elias Haddad notes that the May ISM manufacturing index points to a more restrictive Federal Reserve (Fed) stance and a firmer US Dollar (USD), with the headline index rising to a four-year high.

Nordea economists Tuuli Koivu and Anders Svendsen say rising Euro-area headline and core inflation, driven mainly by higher energy costs and robust services prices, strengthens the case for an ECB rate hike in June.

Societe Generale analysts observe that EUR/PLN is trading near an ascending trendline from February 2025 and oscillating around its 200-day moving average. The pair is currently confined within a 4.2100–4.2650 consolidation band.

Gold (XAU/USD) bounces up on Tuesday, retracing Monday's losses and returning to levels beyond $4,500.

European Central Bank (ECB) official and Finnish Central Bank Governor Olli Rehn said during the European trading session on Tuesday that an interest rate hike at the policy meeting this month should be viewed as an "insurance" move to guard against future inflation risks.

The Euro (EUR) remains vulnerable against the British Pound (GBP) on Tuesday, capped below 0.8650, consolidating losses from the previous two trading days.

TD Securities strategists focus on AUD/NZD after a sharp post-RBNZ selloff. They argue the start of the Reserve Bank of New Zealand (RBNZ) hiking cycle versus a peaking Reserve Bank of Australia (RBA) cycle should cap the prior AUD/NZD uptrend, but expect short-term consolidation.

UOB’s Quek Ser Leang and Lee Sue Ann describe EUR/USD as neutral after Monday’s reversal from 1.1606 to close at 1.1630. They expect the pair to consolidate intraday between 1.1610 and 1.1660, while the broader 1.1590–1.1685 range remains in force.

Rabobank’s Senior Macro Strategist Bas van Geffen highlights that Brent futures near the mid-$90s per barrel, down from a recent peak of $108, still reflect only a relatively optimistic scenario for the Iran conflict.

DBS Group Research’s Philip Wee highlights that USD/JPY is again trading near 160, keeping markets wary of potential Japanese authorities’ intervention and a possible 25 bps rate hike by the Bank of Japan (BoJ) to 1% at its June meeting.

Silver prices (XAG/USD) rose on Tuesday, according to FXStreet data. Silver trades at $76.37 per troy ounce, up 2.00% from the $74.87 it cost on Monday.

The Indian Rupee (INR) trades almost flat against the US Dollar (USD) during India's afternoon trading hours on Tuesday.

ING’s Warren Patterson and Ewa Manthey note that Copper prices in New York and London have risen ahead of a key US tariff decision. The Commerce Department is considering phased import duties starting at 15% in 2027, widening the US price premium and drawing more shipments to US ports.

Eurozone preliminary Harmonized Index of Consumer Prices (HICP) data for May has come in at 3.2% year-on-year (YoY), as expected, higher than the April reading of 3%.

OCBC's strategists Sim Moh Siong and Christopher Wong shift their British Pound (GBP) view from bearish to neutral, citing easing fiscal concerns and attractive carry that have helped GBP recover from early May losses.