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GBP/USD loses ground below 1.3250 in the European session on Tuesday. Political uncertainty in the United Kingdom continues to weigh on the British Pound, while the US Dollar capitalizes on the risk-off mood and hawkish Fed bets. The UK and US S&P Global preliminary PMI data are next of note for the major.
EUR/USD remains stuck in a tight range above 1.1400 in Tuesday's European trading. The US Dollar holds the upper hand against the Euro amid risk-off sentiment and a hawkish Federal Reserve stance, leaving the pair on the defensive. Traders now await the preliminary readings of the Purchasing Managers Index from Germany, the Eurozone, and the United States later on Tuesday.
Gold adds to its Asian session losses, and drops to a nearly two-week low, around the $4,115 region in the last hour amid a bullish US Dollar. Despite positive signals from US-Iran peace talks, widespread skepticism remains toward a final deal. This helps the USD in preserving its recent strong gains to the highest level since May 2025.
Solana edges below $72 risking a third consecutive day of losses that could erase the 5% gains from Friday. SOL-focused Exchange Traded Funds reflect muted demand from institutional investors following a minor recovery last week. Meanwhile, retail trading activity hints at a bearish positional buildup.
In the euro area, June flash PMIs are released. Most respondents will likely have answered after the US-Iran deal, yet the impact of lower oil prices is unlikely to already show up in activity data. We expect manufacturing to edge down to 50.9 (May: 51.6), while we expect services to see a modest improvement to 48.8 (May: 47.7).
The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.
