United States Redbook Index (YoY) rose from previous 9% to 9.1% in June 5

Brown Brothers Harriman’s (BBH) Elias Haddad notes that USD/IDR retreated sharply after hitting a fresh record high, as Bank Indonesia delivered an unscheduled 25 bps hike to 5.50%, following a surprise 50 bps move in May.

Royal Bank of Canada (RBC) economist Claire Fan argues that recent contractions in Canadian GDP do not signal a recession, noting that the C.D. Howe Institute Business Cycle Council shares this view. She emphasizes that sharp swings in population growth distort traditional GDP readings.

United States Goods Trade Balance dipped from previous $-82.4B to $-83.7B in April

Canada Exports up to $75.16B in April from previous $72.77B

Canada International Merchandise Trade registered at $2.72B above expectations ($2.6B) in April

Canada Imports rose from previous $70.99B to $72.44B in April

United States Goods and Services Trade Balance came in at $-55.9B, above expectations ($-56.1B) in April

Gold (XAU/USD) shows signs of stabilization on Tuesday, supported by a softer US Dollar (USD) and lower Oil prices as signs of de-escalation in the Middle East war improve market sentiment.

BNP Paribas strategists argue that Europe is emerging as an alternative safe haven, with the Euro gaining ground as a global safe asset.

Private-sector hiring in the US has cooled in late May. The NER Pulse, which is the weekly companion to the ADP National Employment Report, shows that companies added an average of 29K jobs per week in the four weeks ending May 23.

Mexico reported that 12-month inflation rose by 3.94% in May, down from 4.45% previously and the 4.03% expected by market participants.

United States ADP Employment Change 4-week average: 29K (May 16) vs previous 35.75K

MUFG’s Lee Hardman notes that the US Dollar has stalled after the Dollar Index met resistance near 100.00 as Middle East tensions between Iran and Israel eased and Oil prices retreated toward USD90.

Mexico 12-Month Inflation registered at 3.94%, below expectations (4.03%) in May

Mexico Core Inflation came in at 0.22% below forecasts (0.24%) in May

Mexico Headline Inflation below forecasts (-0.12%) in May: Actual (-0.21%)

National Bank Canada's (NBC) Stéfane Marion and Kyle Dahms highlights that the Canadian Dollar (CAD) has been the weakest reserve currency recently, with USD/CAD back near 1.39. They link this to Canada’s deteriorating real growth, negative Canada–U.S. 2‑year spreads and falling Gold prices.

Gold (XAU/USD) trades flat on Tuesday, near two-and-a-half-month lows at $4,268, with upside attempts capped below $4,360 so far.

The US Dollar (USD) underperforms its major currency peers during the European trading session on Tuesday, as renewed hopes of a permanent peace deal between the United States (US) and Iran have diminished its safe-haven demand.

BNY’s Bob Savage reports that Bank of Japan (BoJ) officials are considering pausing further reductions in JGB purchases after March 2027, keeping buying near ¥2.1tn as the balance sheet shrinks via maturities. The June meeting is expected to deliver a rate hike to 1.0%.

The Australian Dollar (AUD) trades lower against its major currency peers during the European trading session on Tuesday. The Aussie Dollar is up 0.15% against the US Dollar (USD) as the market sentiment turns risk-on.

Brown Brothers Harriman’s (BBH) Elias Haddad observes that AUD/USD is consolidating around 0.7050, with yield spreads pointing to downside risks below 0.7000.

The Japanese Yen (JPY) continues to face strong headwinds, trading back above the critical 160.00 threshold against the US Dollar despite improving domestic fundamentals.

GBP/USD trades around 1.3390 on Tuesday at the time of writing, up 0.42% on the day, mainly benefiting from a weaker US Dollar (USD) following confirmation that direct attacks between Israel and Iran have ceased.

ING’s Frantisek Taborsky says Hungary’s May inflation at 1.8% year-on-year confirms an idiosyncratic disinflation story and makes a June NBH easing cycle “a done deal”, with an initial 25 bp cut to 6.00% and 75 bp total this year.

The Euro (EUR) trades lower against the British Pound (GBP) on Tuesday, with bears testing support at two-week lows in the area of 0.8630, and bearish momentum building up.

Poland’s central bank was the top Gold buyer in April among its peers, consolidating its position as one of the world’s most active sovereigns that accumulate the precious metal.

The Indian Rupee (INR) recovers against the US Dollar (USD) at open on Tuesday after a sharp decline the previous day.

Societe Generale’s Kenneth Broux and colleagues note that EUR/CHF has formed a higher low near 0.9090 versus March’s 0.8980, signalling reduced downside momentum as the cross approaches its 200‑day moving average and a multi‑year descending trendline around 0.9240/0.9265.