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Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.
GBP/USD remains on the back foot, slipping back toward the 1.3370 zone on Tuesday. Cable has come under pressure soon after testing the 1.3400 neighbourhood as investors turned more cautious in response to renewed effervescence on the geopolitical front.
EUR/USD remains on the back foot ahead of the opening bell in Asia, returning to the low-1.1400s on the back of the resurgence of the demand for the US Dollar. Indeed, renewed jitters in the Middle East support the safe haven universe and weigh on the sentiment surrounding the risk complex. Moving forward, investors’ attention should shift to Wednesday’s FOMC Minutes.
Gold steadies around $4,100 following the previous day's downfall as traders opt to wait for the release of FOMC Minutes, due later this Wednesday. The outlook will influence the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion. In the meantime, fresh US strikes on Iran lift Oil prices to a two-week top, reviving inflation fears and supporting the safe-haven buck. This should cap the upside for the precious metal.
The Reserve Bank of New Zealand is widely expected to raise the Official Cash Rate by 25 basis points from 2.25% to 2.50% on Wednesday, snapping a three-consecutive-meeting pause.
Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.
