Dollar Dominates in a Calm Market — Euro Weakens Again

Hello traders, and welcome to Tuesday! After two days of heavy political turbulence — first from Japan’s elections and then from France’s political shake-up — markets are finally entering a quieter phase. The start of Tuesday’s session brings a notable slowdown in volatility, as traders take a breather and reassess their positions following the sharp moves at the beginning of the week.

From the macro perspective, the calendar is rather empty today, which explains the lack of strong directional moves so far. The only notable data releases ahead are Ivey PMI from Canada, scheduled for the start of the American session, and a speech from ECB President Christine Lagarde, which will likely be the highlight of the day for euro traders. Apart from that, Tuesday is set to remain relatively calm, offering the markets a chance to consolidate after Monday’s excitement.

Looking at indices, the tone is muted. Futures are hovering near zero, suggesting that traders are not yet ready to commit to a strong direction. Indices remain inside sideways ranges, with attempts to build up a mild bullish rebound after recent instability. So far, momentum is limited, but the broader sentiment remains cautiously optimistic.

On the currency market, we can clearly see the dominance of North American currencies. Both the U.S. dollar and the Canadian dollar are gaining traction, strengthening across the board. On the losing side, the euro, British pound, and New Zealand dollar are under heavy pressure, with the euro in particular showing notable weakness. In fact, EUR/USD is forming its sixth consecutive bearish hourly candle, which clearly reflects the persistent downside pressure and lack of buyer activity.

Moving to commodities, gold remains strong, continuing its impressive run to the upside and benefiting from ongoing global uncertainty. On the other hand, oil is in a more delicate position — while there are early signs of a potential bullish reversal, confirmation is still missing. For Brent crude, the key resistance sits near $62.20, and a breakout above this level would be needed to trigger a technical buy signal. Until then, oil remains in a holding pattern.

All in all, Tuesday opens as a cooling-off session — quieter and more balanced — but with clear undercurrents of strength in the U.S. dollar and gold, while the euro continues to suffer under selling pressure.

Source: https://www.axiory.com/analytics/market-news/dollar-dominates-in-a-calm-market-euro-weakens-aga