Forex today – Market outlook for Tuesday

Market overview

Markets remain cautious on Tuesday, with the U.S. dollar holding firm against major currencies during the European session. Investors appear reluctant to take large positions ahead of anticipated trade talks between the U.S. and China, scheduled to continue today in London.

USD performance vs. major currencies: The U.S. dollar (USD) maintained strength, particularly against the Japanese yen, gaining 1.24%.

• The euro and British pound saw minimal changes, with EUR/USD down 0.27% and GBP/USD down 0.11%.
• Gold remained stable with slight improvement after falling below $3,300 during Monday’s Asian session.

Key economic events United States

• The NFIB Small Business Optimism Index is due today.
• The dollar made modest gains, with the Dollar Index holding above 99.00.

United Kingdom

• The UK unemployment rate rose to 4.6% for the three months ending April 2025, higher than the expected 4.5%.
• Annual wage inflation declined to 5.2% from 5.5%.
• Job growth came in at 89,000, down from the previous 112,000—adding pressure on the British pound, which is trading below 1.3550 versus the USD.

Europe

• EUR/USD remains in a narrow range near the 1.1400 mark.
• China’s Vice President Han Zheng stated the government is willing to work with the EU to strengthen bilateral ties.

Japan

• Bank of Japan Governor Kazuo Ueda reiterated that the BOJ could consider raising rates if inflation stabilizes around the 2% target.

Commodities

• Gold ended in positive territory after early losses, trading above $3,300 in the later sessions.

Major pairs overview

• USD/JPY: Facing high volatility, currently trading near 144.50.
• AUD/USD: Hovering above 0.6500 during the European session after a drop in the Westpac Consumer Confidence Index for June.
• Gold: Stabilized following sharp declines, trading at elevated levels.

Recommendations

• Markets are expected to stay relatively calm until results from U.S.-China trade talks emerge—these should be monitored closely.
• Watch for the NFIB report from the U.S., which may offer insights into future USD moves.
• Continue observing gold and USD behavior, especially as geopolitical tension supports commodity stability.

Conclusion: With investor sentiment shifting rapidly, and key economic data pending, traders are advised to stay alert and manage risk carefully. Market developments could change direction suddenly, making real-time awareness critical.

 

(This article was written by the author with assistance from language generation tools to support structure and clarity. All insights and opinions are entirely the author’s own.)