The Euro (EUR) edges higher against the Japanese Yen (JPY) on Tuesday as the Yen weakens in response to easing Japanese Government Bond (JGB) yields after the latest 10-year auction sees solid demand. At the time of writing, EUR/JPY is trading around 186.29, snapping a three-day losing streak.

Singapore Manufacturing PMI up to 50.2 in November from previous 50.1

EUR/USD remains little changed on the daily chart on Tuesday, trading at 1.1605 ahead of the US session opening after pulling back from the 1.1650 area on Monday. The unexpected uptick in Eurozone inflation and the higher Unemployment Rate have been practically unnoticed by the market.

The US Dollar remains practically flat around 0.8050 on Tuesday after whipsawing between 0.8070 and 0.8000 over the previous two trading days.

EUR/GBP trades slightly higher on Tuesday, around 0.8800 at the time of writing, up about 0.15% on the day.

Brazil Industrial Output (YoY) came in at -0.5%, below expectations (0.2%) in October

Brazil Industrial Output (MoM) came in at 0.1% below forecasts (0.4%) in October

USD/JPY reversed most of yesterday’s dip as markets digested BoJ Governor Ueda’s hawkish comments boosting December rate hike expectations, BBH FX analysts report.

EUR/USD remains range-bound near 1.1610, with support at 1.1500 and resistance at the 100-day moving average of 1.1644. Eurozone November CPI data reinforces the ECB’s on-hold stance, with headline inflation at 2.2% y/y and core CPI steady at 2.4% y/y, BBH FX analysts report.

US Dollar (USD) bounced off mid-November lows yesterday but has yet to reclaim its 200-day moving average. 10-year Treasury yields steadied around 4.09% after rising nearly 10bps yesterday as heavy corporate borrowing drew demand away from government bonds.

The Pound Sterling (GBP) drops to near 1.3190 against the US Dollar (USD) during the European trading session on Tuesday. The GBP/USD pair falls as the US Dollar extends Monday's recovery move despite weak United States (US) ISM Manufacturing Purchasing Managers’ Index (PMI) data for November.

Gold (XAU/USD) edges lower on Tuesday as traders lock in some profits following Monday’s surge to six-week highs. At the time of writing, XAU/USD is trading near $4,197, down nearly 0.95% on the day.

The US Dollar remains bid against a softening Japanese Yen on Tuesday's European trading session. A somewhat brighter market mood is weighing on JPY, and provides support to the Greenback to extend its recovery from Monday’s lows near 154.65 to levels above 156.00 at the time of writing.

European Central Bank (ECB) Governing Council (GC) member Joachim Nagel said during Tuesday’s European session that inflation in the Eurozone is practically at target and will stay near these levels.

Gold price (XAU/USD) is down 1% to near $4,180.00 during the European trading session on Tuesday. The yellow metal slumps after failing to hold above $4,200 as the US Dollar (USD) bounces back despite weak United States (US) ISM manufacturing Purchasing Managers’ Index (PMI) data for November.

Italy Producer Price Index (MoM): -0.2% (October) vs previous 0.2%

Italy Producer Price Index (YoY) fell from previous 1.1% to 0.1% in October

The Euro-area flash inflation estimate for November remained close to the ECB’s target at 2% y/y, supporting an ECB that is on hold unless new shocks appear.

West Texas Intermediate (WTI) US Oil trades around $59.20 on Tuesday at the time of writing, down 0.20% on the day.

The Japanese Yen (JPY) has continued to trade at stronger levels overnight following yesterday’s gain’s triggered by the clear signal from Governor Ueda that the BoJ is planning to resume rate hikes this month.

USD/JPY remains sensitive to monetary policy divergence this month, as bets for a December 10 Fed rate cut and a December 19 BOJ hike gain traction, supporting Tokyo’s effort to stabilize the Japanese Yen (JPY).

Spain 12-Month Letras Auction remains unchanged at 1.99%

Spain 6-Month Letras Auction declined to 1.931% from previous 1.944%

Bank of England (BoE) Governor Andrew Bailey stated during the European trading session on Tuesday that the focus on maintaining financial stability has become more important than ever, given increased risks.

The Pound Sterling (GBP) rose this week following relief over the UK Autumn Statement and broad USD weakness, pushing cable above 1.3275 and further away from early November lows.

The US Dollar is trading higher for the second consecutive day against the Canadian Dollar, reaching levels past 1.4000 during the European morning trading.

Annual Harmonized Index of Consumer Prices (HICP) in the Eurozone, as measured by changes in the prices of a representative basket of goods and services in the European Monetary Union, rises by 2.2%, faster than estimates and the prior release of 2.1%. On month, the headline HICP deflated by 0.3%.

Eurozone Core Harmonized Index of Consumer Prices (MoM) fell from previous 0.3% to -0.5% in November

Eurozone Core Harmonized Index of Consumer Prices (YoY) came in at 2.4% below forecasts (2.5%) in November

Eurozone Unemployment Rate above expectations (6.3%) in October: Actual (6.4%)