EUR/USD retraces its recent gains as the US Dollar gains ground on risk aversion. MACD indicates a momentum shift towards a bearish sentiment in the pair. The psychological level at 1.0900 and the 50-day EMA at 1.0897 could act as a potential support region. (FXStreet)

USD/JPY trades in positive territory for the second consecutive day on Tuesday. The Japanese Producer Price Index (PPI) came in at 0.3% MoM in December vs. 0.2% prior, beating the estimation of 0%. Investors anticipate the interest rate cuts as soon as a Fed meeting in March. (FXStreet)

GBP/USD loses ground on risk aversion as escalation of the Middle East conflict is possible. The Pound Sterling faces challenges before the release of UK labor data on Tuesday. Governor Bailey’s testimony has been canceled; traders will look for his remarks in Davos. Houthis are likely to broaden their targets in the Red Sea region including US vessels. (FXStreet)

USD/CHF moves on an upward trajectory amid market caution. Traders observe the five-day World Economic Forum in Davos to gain cues on the global economic scenario. US Dollar rises on upbeat US Dollar, coupled with hawkish remarks from Fed’s Bostic. (FXStreet)

USD/CAD gains ground as investors turned back to the US Dollar. WTI price could rise on the escalated situation in the Red Sea; supporting CAD. BoC’s Business Outlook Survey Results showed that inflation could persist above the 2.0% target. (FXStreet)

EUR/JPY edges lower to 159.50 amid the risk-off sentiment. The German Harmonized Index of Consumer Prices (HICP) came in at 3.8% YoY in December vs. 3.8% prior, as expected. The markets anticipate the BoJ will end its negative interest rate, probably in April 2024. Traders await the January Zew Survey from Germany and the Eurozone, due later on Tuesday. (FXStreet)

NZD/USD trades in negative territory for two straight days, losing 0.46% on the day. The concern about ongoing geopolitical tension lifts the US dollar and exerts some selling pressure on the Kiwi. New Zealand NZIER Business Confidence for Q4 arrived at -2.0% vs. -52% prior. Investors await the US NY Empire State Manufacturing Index for January, due on Tuesday. (FXStreet)

USD/MXN improves as the US Dollar receives upward support from risk-off sentiment. Fed’s Bostic said that inflation deceleration toward the 2.0% target could slow down. Banxico’s officials face challenges in reducing interest rates due to high inflation. (FXStreet)

WTI prices edge higher on supply disruptions as Houthi broadens targets in the Red Sea. The route diversion of maritime vessels is raising shipping costs and transit times for oil transportation. Islamic Revolutionary Guard Corps (IRGC) launched missiles to dismantle espionage centers near the US Consulate in Erbil, Iraq. (FXStreet)

Gold price holds above $2,050 in Tuesday’s Asian trading hours. Modest gains in gold are underpinned by rising tensions in the Red Sea and the risk-off mood. Atlanta Fed’s Bostic said inflation could seesaw if policymakers cut rates too soon. (FXStreet)

Source: FXStreet

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.