The US Dollar (USD) reversed its prior gains and came under some modest downside pressure on Tuesday, as market participants shifted their attention to another bout of the Trump-Fed spat ahead of the release of key inflation data toward the end of the week.

Following Monday’s decent gains, USD/JPY faces renewed downside pressure on turnaround Tuesday, coming all the way down to retest the 147.00 region, where some decent contention seems to have turned up.

Gold stayed firm just under $3,400 per troy ounce on Tuesday, lifted by renewed weakness in the US Dollar (USD) and lingering doubts over the Fed’s independence after President Trump’s unprecedented attempt to fire Governor Lisa Cook.

Cronos (CRO) is up 32% on Tuesday after Yorkville Acquisition, Trump Media and Technology Group (DJT), and Crypto.com revealed a business combination to launch a CRO treasury company with up to $6 billion in initial funding.

The Dow Jones Industrial Average (DJIA) spun a tight circle on Tuesday, holding steady near familiar levels as investors await meaningful data or news headlines to get the machine chugging again.

United States 2-Year Note Auction: 3.641% vs previous 3.92%

Generally encouraging United States data revived optimism among market players.

United States (US) President Donald Trump struck a mix of new and familiar talking points during a cabinet meeting on Tuesday.

Ripple (XRP) is edging higher above support at $2.90 on Tuesday following a widespread sell-off in the broader crypto market, which saw Bitcoin (BTC) reach an intraday low of $108,666. 

Yesterday, French Prime Minister François Bayrou announced that a no-confidence vote will be held on September 8th. This comes in the wake of the ongoing political impasse, a phenomenon we have been highlighting for some time, ABN AMRO's Senior Fixed Income Strategist Sonia Renoult reports.

Catherine Mann, a member of the Bank of England’s Monetary Policy Committee (MPC), said on Tuesday that the bank rate should be held persistently to lean against inflation risks. She added that she was ready to cut rates more forcefully if downside risks to growth materialise.

United States Richmond Fed Manufacturing Index above expectations (-17) in August: Actual (-7)

Chainlink (LINK) price extends recovery following three consecutive days of declines. The oracle network token is up over 2% to exchange hands above $23.00 on Tuesday, buoyed by positive sentiment after digital asset manager, Bitwise, filed to launch a LINK spot Exchange Traded Fund (ETF).

USD/JPY lost its traction and declined below 147.00 after posting strong gains on Monday. Although the pair recovers above 147.50 region in the second half of the day on Tuesday, it remains in negative territory.

The Euro (EUR) is clawing back ground on Tuesday, with EUR/USD rebounding after Monday’s hiccup and edging toward the 1.1650 area. Continued upside could put a test for the monthly highs near 1.1740 (August 22) back on the radar.

United States Housing Price Index (MoM) came in at -0.2% below forecasts (0%) in June

United States S&P/Case-Shiller Home Price Indices (YoY) registered at 2.1%, below expectations (2.2%) in June

Bitcoin’s (BTC) technical structure continues to deteriorate, worsened by weak market sentiment. The largest cryptocurrency by market capitalization saw a flash drop to $108,666 during the Asian session on Tuesday before rebounding to exchange hands above $110,000 at the time of writing.

United States Redbook Index (YoY) up to 6.5% in August 22 from previous 5.9%

Following Monday's bearish action, GBP/USD stages a rebound on Tuesday. At the time of press, the pair was up 0.25% on the day at 1.3485.

Gold prices are climbing again, snapping Monday’s brief dip and pushing back toward the key $3,400 per ounce level.

United States Durable Goods Orders ex Transportation registered at 1.1% above expectations (0.2%) in July

United States Durable Goods Orders registered at -2.8% above expectations (-4%) in July

United States Durable Goods Orders ex Defense up to -2.5% in July from previous -9.4%

Bonk (BONK), a Solana-based meme, offers recovery signs, up 2% on Tuesday and marking a knee-jerk bounce after extending its downtrend below the critical $0.000020 level. The token peaked at around $0.000040 in July, marking a local top.

Brazil Mid-month Inflation registered at -0.14% above expectations (-0.23%) in August

The Euro (EUR) is up 0.2% against the US Dollar (USD) and outperforming all of the G10 currencies in quiet trade, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.