BNY’s Bob Savage highlights that the New Zealand Dollar enters the upcoming RBNZ meeting on a weak footing, with a notable lack of recent flows and a large NZD outflow linked to unrolled swap positions.

MUFG analysts note the US Dollar’s mixed performance as markets reassess Fed policy amid stronger inflation data and rising yields. They highlight the 2-year Treasury yield hitting new highs and see scope for further upside in US rates.

United States S&P/Case-Shiller Home Price Indices (YoY) came in at 0.8%, below expectations (1%) in March

United States Housing Price Index (MoM) meets forecasts (0.1%) in March

USD/CHF trades with a mild positive bias on Tuesday as renewed military escalation between the United States (US) and Iran supports the US Dollar (USD), pressuring the Swiss Franc (CHF).

Deutsche Bank economists flag Thursday’s US personal income and spending report, including core PCE, as the key data for the Federal Reserve. They expect core PCE to rise 0.3% month-on-month, with consumption momentum cooling.

Bank of Canada (BOC) Deputy Governor Nicolas Vincent said on Tuesday the more the economy faces shocks accompanied by structural changes, the less clear-cut the monetary policy decisions will be, per Reuters.

United States Chicago Fed National Activity Index increased to 0.14 in April from previous -0.2

Kit Juckes at Societe Generale highlights that speculative positioning in the Australian Dollar is the largest long since 2013, built despite deteriorating domestic data and lower yields.

DBS Group Research economist Philip Wee expects the Reserve Bank of New Zealand (RBNZ) to deliver a hawkish hold, prioritising above-target inflation over weak GDP growth and high unemployment.

ING’s Deepali Bhargava argues that India’s fuel subsidies and diversified energy sourcing have contained the inflation and growth impact of higher oil prices, but shifted pressure onto the Indian Rupee (INR).

Gold (XAU/USD) loses ground on Tuesday as the US Dollar (USD) and Oil prices rebound after renewed US military strikes in southern Iran dampen hopes for a quick end to the Middle East war. At the time of writing, XAU/USD is trading around $4,511, easing from an intraday high of $4,580.

Brown Brothers Harriman's (BBH) Elias Haddad reiterates its constructive view on the Dollar Index (DXY), warning it may overshoot the upper end of its 96.00-100.00 range in the near term.

The US Dollar (USD) trades almost flat ahead of the United States (US) stock markets opening after an extended weekend during the late European trading session on Tuesday, with the US Dollar Index (DXY) wobbling around 99.00 after giving back its early gains.

The Euro (EUR) is trading higher against the British Pound (GBP) on Tuesday, trimming losses after depreciating more than 1% in a bit more than a week.

Rabobank’s Michael Every argues that the Strait of Hormuz is unlikely to return to normal operations for up to three months, keeping a significant share of global Oil and gas flows constrained.

UOB’s Quek Ser Leang and Lee Sue Ann note that USD/JPY has stalled into sideways trade after failing to extend losses, with intraday momentum indicators flat. On a 1–3 week view, they still hold a positive US Dollar (USD) bias above strong support, but acknowledge slowing upside momentum.

According to Iran's Fars news agency, the unfreezing of Iran's funds is the last serious sticking point with the United States (US), being resolved through Qatar mediation. However, there has been no official confirmation.

The Euro (EUR) remains flat against the US Dollar (USD) for the second consecutive day on Tuesday, trading at 1.1645 at the time of writing, after bouncing up from 1.1624 highs.

Gold price (XAU/USD) trades 0.85% lower to near $4,530 during the European trading session on Tuesday. The precious metal faces selling pressure amid growing concerns over the longevity of the ceasefire in the Middle East.

The Indian Rupee’s (INR) rally against the US Dollar (USD) hits a pause after a four-day winning streak on Tuesday.

European Central Bank (ECB) Chief Economist Philip Lane said in an interview with Nikkei, "I don't think the market needs some kind of extra guidance from us,” when asked about speculation of an interest rate hike by the central bank.

MUFG’s Derek Halpenny notes that optimism over a potential US–Iran peace deal initially pushed the Dollar lower alongside a sharp drop in Brent crude, but subsequent US strikes have revived uncertainty.

Citing a source close to Tehran's negotiation team, Iran's Tasnim news agency reported on Tuesday that Iran insists $24 billion of frozen Iranian funds must be released in a potential Memorandum of Understanding (MOU) with the United States (US).

Deutsche Bank’s Jim Reid and team note that Brent Oil has fallen sharply as hopes build for a deal to end the Iran war, with prices dropping back below $100. The bank links recent Oil weakness to reduced stagflation fears and lower inflation expectations.

Silver prices (XAG/USD) fell on Tuesday, according to FXStreet data. Silver trades at $76.06 per troy ounce, down 2.56% from the $78.06 it cost on Monday.

Societe Generale’s Kenneth Broux highlights that EUR/GBP is trading within a Head and Shoulders pattern, implying potential downside if key levels give way.

The USD/CAD pair extends its sideways consolidative price move for the second straight day on Tuesday and holds steady near the 1.3800 mark through the first half of the European session.

EUR/CAD depreciates after four days of losses, trading around 1.6060 during the European hours on Tuesday. The currency cross loses ground as the commodity-linked Canadian Dollar (CAD) remains firm amid higher crude oil prices.

DBS Group Research economist Radhika Rao notes that the Indian Rupee has appreciated from near 97.00 to the mid-95.00 area on hopes of easing West Asia tensions, lower Oil prices, and central bank support.