A deal to avoid a US government shutdown continues to lift risk assets, helping the S&P 500 to close above the 200-day moving average. NZD is the top performer after the   defying expectatations that it's changing tack as did the Fed and RBA. US CPI is up next, with the headline figure seen at 1.5% from 1.9% and core at 2.1% from 2.2%. A new update on EURUSD for Premium subscribers will be issued ahead of the NY bell.

Optimism about global growth and an apparent deal to end the US government shutdown have helped boost sentiment. Trump said he's unhappy there isn't more money for his border wall but hasn't said he will veto it. He could be expected to later use his executive authority to fund additional border measures.

Treasury yields climbed and the S&P 500 surged 35 points to 2744, finishing just above the 200-DMA. SPX futures are now at 2752. That level had called a rally last week. Global stocks joined in the rally and the US dollar, yen and Swiss franc softened in a classic risk-on move.

In the oil market, Saudi Arabia's energy minister said they could cut production by an additional 500k bpd in March and that led to a rally in WTI to $54.00. There's a minor double bottom forming at $51.23 that will be a spot to watch this month. USD/CAD fell back to Friday's post-jobs report lows.

UK CPI slowed to 1.8% in Jan from 2.1%, undershooting expectations of a 1.9% reading. Core CPI held at 1.9% y/y as expected. 

Carney reiterated Tuesday that modest tightening over time is likely to be needed but falling inflation numbers and endless Brexit uncertainty argue against it. On that front, May's latest meaningful vote was delayed until late in the month and there were reports that Boris Johnson could support the current deal with a firm expiration date for the Irish backstop. There was also talk that May could quit in the summer once a deal is struck.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD extends slide, nears the 1.1200 figure

The shared currency is suffering from speculation the ECB will steepen easing and German Business Sentiment falling by more-than-anticipated. Upbeat US Retail Sales sent the pair further down toward the 1.1200 figure.



GBP/USD collapsed to fresh 2019 lows

Robust employment data fell short of supporting the Pound, badly hurt from mounting fears about a hard-Brexit, after PM’s candidates, Johnson and Hunt said that the Irish backstop is “dead” and would seek for a new daily, something the EU is not willing to do.


USD/JPY: risk sentiment skews the pair to the downside

Political and economic turmoil in Europe weighed on the market’s sentiment. US Retail Sales seen posting a modest advance in June. USD/JPY to resume its decline if the 107.70 support gives up.


Gold in search of a firm direction, stuck in a range ahead of US data/Powell

Gold lacked any firm directional bias and seesawed between tepid gains/minor losses through the mid-European session on Tuesday.

Read more

Gold: Set-up remains in favour of bullish traders; 100-hour SMA marks a key support

Given the recent bullish momentum since late-May, the triangle might still be categorized as a continuation pattern that marks a brief pause and thus, support prospects for a further near-term appreciating move. 

Gold News