HSBC analysts argue that Takaichi’s strong mandate brings both upside and downside risks for JPY via fiscal choices and market perceptions.

National Bank Of Canada (NBC) analysts Taylor Schleich, Ethan Currie and Warren Lovely report that softer Canadian data, cooler inflation and rising trade uncertainty have sharply reduced the likelihood of 2026 Bank of Canada hikes.

The British Pound (GBP/GBP) edges lower against the Japanese Yen on Tuesday, as renewed political uncertainty in the UK weighs on the Pound. At the time of writing, GBP/JPY is trading around 212.00, down nearly 0.70% on the day.

ING strategists Benjamin Schroeder and Michiel Tukker note that US yield curves are steepening as front-end rates fall on softer jobs expectations while long-end yields rise on supply concerns.

Rabobank’s Michael Every highlights Trump’s suggestion that US growth could reach 15% under Fed Chair Warsh, implying a willingness to run the economy hot and supporting capital inflows into the Dollar.

Retail Sales in the United States remained unchanged at $735 billion in December, the US Census Bureau reported on Tuesday. This print followed the 0.6% increase recorded in November and came in weaker than the market expectation for an increase of 0.4%.

Commerzbank’s Barbara Lambrecht and Volkmar Baur report that Copper and broader base metals have eased from recent highs, with China’s influence on global metal demand growth declining compared to pre-pandemic years.

Danske Bank analysts note that for a fifth straight meeting the ECB kept its key policy rate at 2.00%, in line with expectations. President Lagarde emphasized strong labour markets and solid balance sheets, while downplaying sub‑target inflation and Euro strength.

EUR/USD recovers from earlier daily lows on Tuesday after spending most of the day in a tight range, as softer-than-expected US Retail Sales data weighs on the US Dollar (USD) and offers modest support to the Euro (EUR).

BNP Paribas economists Anis Bensaidani and Pascal Devaux warn that US electricity inflation, driven partly by AI-related data centers and structural constraints, is set to remain elevated into 2026.

EUR/GBP trades around 0.8715 on Tuesday at the time of writing, up 0.15% on the day. The cross draws moderate support from the Euro (EUR), although the single currency’s momentum remains broadly contained by the latest signals from the European Central Bank (ECB).

Societe Generale analysts note that stronger‑than‑expected Norwegian inflation is supporting the Norwegian Krone and questioning expectations for further Norges Bank easing.

Gold (XAU/USD) struggles for direction on Tuesday, with overall trading activity subdued in the absence of fresh market-moving catalysts. At the time of writing, XAU/USD trades around $5,035, holding firm after briefly slipping below the $5,000 psychological level during the early Asian session.

Nordea’s Helge J. Pedersen notes that Danish inflation dropped sharply to 0.8% year-on-year in January, largely due to the government’s cut in electricity tax to the EU minimum. Core inflation also eased, and goods prices are now lower than a year ago.

Danske Bank economists Sofie Grundvad Pedersen and Rune Thyge Johansen note that Euro area GDP grew 0.3% q/q in Q4 2025, slightly above ECB projections, driven by Germany, Spain and Italy.

The Pound Sterling (GBP) consolidates below 1.3700, edges down 0.2% during the North American session on Tuesday as the Greenback pares some of its earlier losses after the release of worse-than-expected US data. GBP/USD trades at 1.3660 after hitting a daily high of 1.3700.

Silver (XAG/USD) trades with a negative bias on Tuesday, as mild profit-taking emerges after the metal surged more than 8% on Monday.

US Treasury Secretary Howard Lutnick hit the newswires with an array of policy, trade, and economic outlook soundbites on Tuesday.

The daily chart for spot Gold shows a broad uptrend that is holding above both the 50-day Exponential Moving Average (EMA) at 4,637 and the 200-day EMA at 3,954, confirming the longer-term bullish structure.

United States (US) Treasury Secretary Scott Bessent said that they can have a very productive relationship with China, adding that the competition keeps you from stagnating. At a hearing on Capitol Hill on Tuesday, he added that the Trump administration sees a good partnership with Venezuela.