ING’s Chris Turner argues that Japanese FX intervention is having diminishing impact on USD/JPY. He notes that high energy prices, rising US yields and a dovish Bank of Japan create strong headwinds for the Japanese Yen.

United States Redbook Index (YoY) climbed from previous 7.7% to 7.8% in May 1

Brown Brothers Harriman’s (BBH) Elias Haddad notes that risk sentiment remains resilient even as US–Iran tensions flare, with Brent Oil easing and the US Dollar Index (DXY) consolidating below its 200‑day average.

United States Goods Trade Balance dipped from previous $-87.9B to $-88.7B in March

Canada Exports up to $72.77B in March from previous $66.31B

Canada International Merchandise Trade came in at $1.78B, above forecasts ($-2.8B) in March

Canada Imports dipped from previous $72.05B to $70.99B in March

United States Goods and Services Trade Balance above expectations ($-60.5B) in March: Actual ($-60.3B)

Rabobank’s Senior FX Strategist Jane Foley expects interest rate differentials to support an upward bias in EUR/USD in the second half of the year, but sees Euro gains capped by Eurozone growth headwinds from the current supply shock.

AUD/USD trades around 0.7170 on Tuesday, remaining slightly on the back foot for a second consecutive day despite the monetary policy decision from the Reserve Bank of Australia (RBA).

BNY’s Bob Savage describes a fragile risk backdrop, with investors tracking the Strait of Hormuz as a key barometer for energy supply relief. Despite ceasefire doubts after Iran–U.S. exchanges, risk assets are firmer, Oil is lower, Gold higher and the Dollar bid.

TD Securities strategists Prashant Newnaha and Alex Loo highlight that the Reserve Bank of Australia (RBA) raised the cash rate to 4.35% with a dovish message, viewing risks to inflation and growth as more balanced.

Gold (XAU/USD) steadies on Tuesday but lacks upside momentum as higher-for-longer interest rate expectations rise following renewed escalation in the Middle East, which continues to fuel energy-driven inflation concerns.

The Euro (EUR) trades lower for the third consecutive day against the US Dollar (USD) on Tuesday.

UBS's Chief Economist Paul Donovan notes that Oil markets showed a muted reaction to reports of US–Iran exchanges in the Gulf, as investors had already discounted earlier US optimism and focused on Iranian comments.

USD/CHF trades around 0.7830 on Tuesday, down slightly by 0.07% on the day.

The US Dollar (USD) keeps crawling higher against the Japanese Yen (JPY) for the third consecutive day on Tuesday. The pair has reached the upper range of the 157.00s, trading at 157.65 at the time of writing, as the escalating tensions in the Strait of Hormuz boost the safe-haven US Dollar.

The US Dollar (USD) shows minor losses against the Canadian Dollar (CAD) on Tuesday, although it remains steady above 1.3600 so far, trading at 1.3515 at the time of writing and holding most of the last two trading days' gains, after bouncing from Friday’s lows at 1.3550.A moderate risk aversion is

Brown Brothers Harriman’s (BBH) Elias Haddad highlights that Switzerland’s April Consumer Price Index (CPI) was mixed, with headline inflation boosted by energy but core CPI slipping to a multi‑year low.

ING’s Chris Turner notes that the US Dollar (USD) is benefiting from a hawkish Federal Reserve (Fed) narrative as markets price in a small amount of additional tightening for 2026. He highlights that high Oil prices and Gulf tensions are keeping short-dated US rates supported.

TD Securities strategists Prashant Newnaha and Alex Loo note that the Reserve Bank of Australia (RBA) delivered a widely expected 25 bps hike to 4.35%, but Governor Bullock’s dovish tone suggests a preference to pause.

National Bank of Canada (NBC) strategists Stéfane Marion and Kyle Dahms describe an uneven near-term backdrop for the Euro (EUR), citing elevated geopolitical risk, high energy costs and weak growth.

Silver prices (XAG/USD) rose on Tuesday, according to FXStreet data. Silver trades at $73.70 per troy ounce, up 0.24% from the $73.52 it cost on Monday.

DBS Group Research’s Chang Wei Liang notes that Japan has stepped up intervention to support the Japanese Yen after the US–Iran clash in the Strait of Hormuz lifted Brent towards USD115.

Danske Research Team underlines that escalating US–Iran tensions in the Strait of Hormuz are sustaining volatility in Oil markets. Brent crude trades over 110 USD/bbl, reflecting persistent supply concerns.

West Texas Intermediate (WTI) trades around $101.10 on Tuesday, down 1.26% at the time of writing, after posting strong gains the previous day amid escalating geopolitical tensions in the Middle East.

ING’s Chris Turner warns that higher natural gas prices could become a fresh headwind for the Euro (EUR). He reiterates ING’s view that 1.17 remains a fair level for EUR/USD under current assumptions for energy, policy and equities.

Dow Jones futures gain 0.24%, trading near 49,200 during the European hours on Tuesday, ahead of the United States (US) regular opening. Meanwhile, the S&P 500 rise 0.30% to near 7,250, and the Nasdaq 100 futures advance 0.48% above 27,900.

Societe Generale strategists note AUD/USD has pulled back after the Reserve Bank of Australia (RBA) delivered a third 25bp hike to 4.35% while signalling a pause.

Spain 12-Month Letras Auction increased to 2.635% from previous 2.611%