Makro

USD/CHF edges higher on Tuesday as uncertainty around US-Iran efforts to end the war keeps risk sentiment fragile, supporting demand for the US Dollar (USD) while the Swiss Franc (CHF) struggles to gain despite its safe-haven appeal, amid Swiss National Bank (SNB) warnings of readiness to act agains

United Overseas Bank’s Alvin Liew reports the Bank of Japan (BoJ) left its policy rate at 0.75% but signalled that the next move will be a hike as underlying inflation nears target and real rates stay very low.

BNY’s Bob Savage highlights that the Bank of Japan (BoJ) kept its policy rate at 0.75% in a 6–3 split, raising core inflation forecasts to 2.8% and cutting growth to 0.5%.

GBP/USD trades lower on Tuesday, hovering around 1.3490 at the time of writing, down 0.33% on the day as investors trim positions ahead of key monetary policy decisions from the Federal Reserve (Fed) and the Bank of England (BoE) later this week.

The British Pound (GBP) weakens against the Japanese Yen (JPY) on Tuesday as the Yen gains traction following the latest monetary policy decision from the Bank of Japan (BoJ).

TD Securities analysts highlight that the European Central Bank (ECB) Consumer Expectation Surveys showed a notable upside surprise in 1-year and 3-year inflation expectations.

The USD/JPY pair is up 0.17% to near 159.70 during the European trading session on Tuesday. The pair trades higher as the US Dollar (USD) outperforms its peers ahead of the two-day Federal Reserve (Fed) policy meeting, which will start later in the day.

The Euro (EUR) has reversed the previous two trading days' recovery against the US Dollar (USD) on Tuesday and languishes right below 1.1700 ahead of the US session opening.

BNY strategist John Velis expects the Federal Reserve (Fed) to leave rates unchanged at the April Federal Open Market Committee (FOMC) meeting and provide limited forward guidance, reflecting uncertainty around inflation and the Iran conflict.

The Pound Sterling (GBP) is down against its major currency peers, trading 0.2% lower around 1.3500 against the US Dollar (USD), during the European trading session on Tuesday.

EUR/CAD depreciates for the second successive day, trading around 1.5960 during the European hours on Tuesday. The currency cross holds losses as the Euro (EUR) struggles on increased safe-haven demand amid stalled US-Iran peace talks.

United States (US) equity markets trade with caution at the start of the European trading session on Tuesday. As of writing, S&P 500 futures are down 0.16% to near 7,160, and Dow Jones futures are flat slightly below 49,200.

EUR/JPY depreciates after two days of gains, trading around 186.40 during European hours on Tuesday. The technical analysis of the daily chart indicates the currency cross slips below the ascending channel, signaling a possible bearish reversal.