Forex today witnessed a quiet Asian affair amid a cautious risk tone, with most majors sticking to thin trading ranges while the US dollar attempted a tepid bounce broadly. The Asian stock markets traded mixed, as markets remained unnerved ahead of the key Eurozone and Chinese macro releases.
USD/JPY was stuck in 20-pips trading range near the 112.00 handle, with the JPY bulls unfazed by the BOJ Governor Kuroda’s willingness to ease the monetary policy further, if required. Both the Euro and the GBP remained confined within its recent trading range.
The EUR calendar ahead remains relatively eventful, with the UK employment data and German ZEW survey to headline. The UK jobs and wage growth report will drop in at 08:30 GMT and is expected to have a major impact on the GBP, given no fresh updates on the Brexit front. Meanwhile, the shared currency could be influenced by the German ZEW survey for April, with a rebound expected in the German economic sentiment. In the NA session, the US capacity utilization and industrial figures are due at 13:15 GMT and the release of the US API weekly crude stocks data that is slated for release late-Tuesday at 20:30 GMT.
Oil prices also traded on the back-foot during early sessions on Tuesday. The energy benchmark trades little weak to $63.50 as increasing challenges to global supplies regain market attention after early-month geopolitical issues fuelled the black gold to five-month highs. Russian Finance Minister said over the weekend that Russia and OPEC may decide to boost production to fight for market share with the United States, but this would push oil as low as $40 per barrel.
Gold extended its steady decline through the early European session and dropped below $1285 level in the last hour. Improving global risk sentiment was evident from a positive tone surrounding equity markets and turned out to be one of the key factors denting the precious metal's perceived safe-haven status. Meanwhile, the prevalent US Dollar selling bias, which tends to underpin demand for the commodity-linked currency, failed to lend any support or stall the ongoing slide back closer to monthly lows.