Bank of Canada (BoC) Governor Tiff Macklem noted that the BoC will not be revisiting its 2% inflation target for the foreseeable future, citing uncertainty around trade and ever-changing tariff policies from the United States (US).

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.

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

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

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)

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

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

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%

The US Dollar (USD) is soft but overall movement remains limited as G10 currencies respond to news of President Trump’s moves to fire Fed Gov, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The United States (US) will see the release of the August Conference Board’s Consumer Confidence Index on Tuesday. The report is a monthly survey conducted by the Conference Board that gathers information on consumer behaviour, expectations, purchasing intentions, and vacation plans.

EUR/HUF remains under pressure after failing to reclaim the 200-day moving average. A rebound is testing the 399/400 resistance zone, but inability to break higher risks extending the decline toward 389.90 support, Société Générale's FX analysts note.

The United States (US) Durable Goods Orders for July is due for release today at 12:30 GMT. The Census Bureau is expected to show that fresh orders for durable goods have declined again, but at a moderate pace of 4%. In June, Durable Goods Orders contracted by 9.3%.

US Dollar (USD) could drop below July’s low of 7.1435, but it might not be able to maintain a foothold below this level.

China’s y/y export growth accelerated during H1 despite a sharp decline in exports to US. Phones and laptops comprised an outsized share of China’s declining exports to the US.

EUR/GBP looks to stay offered this week as French politics prompts some reassessment of long euro exposure, ING's FX analyst Chris Turner notes.

Here is what you need to know on Tuesday, August 26:

France Consumer Confidence came in at 87 below forecasts (90) in August

Sweden Producer Price Index (MoM) increased to 1.1% in July from previous -0.6%

Sweden Producer Price Index (YoY) climbed from previous -3.1% to -0.6% in July

Singapore Industrial Production (YoY): 7.1% (July) vs previous 8%

Singapore Industrial Production (MoM) came in at 8.2%, above expectations (1.1%) in July

US Federal Reserve (Fed) Governor Lisa Cook said on Tuesday that she will not resign following President Donald Trump’s announcement of her removal.

Japanese Finance Minister Katsunobu Kato said on Tuesday that he is “alarmed over FX moves, including those driven by speculators.”

The Reserve Bank of Australia (RBA) published the Minutes of its August monetary policy meeting on Tuesday, which showed that board members agreed that some further reduction in the cash rate is likely to be needed in the coming year. 

On Monday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1188 as compared to the previous day's fix of 7.1161 and 7.1670 Reuters estimate.