After holding fire in July, the ECB looks like it may have shut the door on further rate cuts for now. Inflation is still sitting just above target, and growth prospects, while modest, aren’t dire enough to push the Governing Council into more easing.
GBP/USD gains traction in the European session on Tuesday and advances toward 1.3600 after posting modest gains on Monday.
The AUD/USD pair prolongs its uptrend for the third consecutive day on Tuesday and advances to levels beyond the 0.6600 mark, or the highest since July 24 during the first half of the European session.
EUR/USD stays in a consolidation phase at around 1.1750 in the European session after touching its highest level since late July at 1.1780 earlier in the day.
EUR/USD remains bullish above 1.17 as traders eye ECB policy and US inflation data, though resistance at 1.1780–1.1860 could trigger a pullback.
Gold surged to a record $3,659 per ounce on Tuesday, with Fed rate cut bets keeping XAU/USD bullish toward the $3,700 mark despite overbought signals.