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The publication of Canada’s April Consumer Price Index (CPI) figures on Tuesday will be the focus of attention.

Danske Research Team reports that Brent Crude slipped about 2% to USD 109.8 per barrel after President Trump paused a large-scale strike on Iran to allow negotiations.

The New Zealand Dollar (NZD) is pulling back against the US Dollar (USD) on Tuesday, trading right above 0.5850 at the time of writing, down from Monday’s highs at 0.5880.

The US Dollar (USD) recovers on Tuesday after a sharp corrective move the previous day amid firm expectations that the Federal Reserve (Fed) will not cut interest rates this year.

AUD/JPY has offered its recent gains registered in the previous day, trading around 113.40 during the early European hours on Tuesday.

BNY strategists John Velis and David Tam have abandoned their call for two Federal Reserve rate cuts this year, citing persistent disruption in the Strait of Hormuz and a labor market that has not weakened as expected.

Antje Praefcke at Commerzbank highlights that the Norwegian Krone (NOK) has outperformed Euro (EUR) and US Dollar (USD), helped by Norway’s status as a net Oil and gas exporter during the Iran war.

Deutsche Bank’s Jim Reid reports that the S&P 500 slipped slightly, recovering late in the session after Trump called off planned strikes on Iran.

Rabobank’s Michael Every and Joe DeLaura argue that the Iran War could accelerate a shift from unified Oil markets towards Balkanised pricing and settlement blocs.

The AUD/USD pair maintains its offered tone through the early European session on Tuesday and currently trades around the 0.7130-0.7125 region, just above the monthly low touched the previous day.

Tom Emmer, the House majority whip, is also advocating for his Anti-CBDC Surveillance State Act, which has passed the House but has yet to pass the Senate.

Ethereum Foundation researchers Julian Ma and Carl Beek have resigned, bringing the total number of major departures from the nonprofit to at least eight in 2026.

ING's Francesco Pesole notes that the Japanese Yen (JPY) remains weak even on softer US Dollar (USD) sessions, suggesting markets want to probe official tolerance.

Here is what you need to know on Tuesday, May 19:

OCBC’s FX Strategist Christopher Wong highlights that Asian FX has seen a modest stabilisation after an oil- and rates-led sell-off, helped by softer Brent and a pause in United States (US) yield gains.

The USD/CAD pair trades marginally higher to near 1.3750 during the European trading session on Tuesday.

Danske Research Team observes that equities moved lower on US tech underperformance and a defensive rotation, though most sectors ended higher and VIX declined.

Commerzbank’s Antje Praefcke notes that rising Oil prices linked to renewed Middle East tensions are lifting US inflation and pushing back expectations for Fed rate cuts, with markets even contemplating a hike by mid‑2027.

The British Pound (GBP) drifts further from Monday’s highs near 1.3450 against the US Dollar (USD) on Tuesday, reaching session lows a few pips above 1.3400 at the time of writing.

According to the Islamic Republic News Agency (IRNA), Iran's deputy Foreign Minister Kazem Gharibabadi said on Tuesday that lifting sanctions, releasing frozen funds, and ending the United States (US) blockade are major demands included in Iran's recent proposal to the US.

The EUR/GBP cross attracts some dip-buyers on Tuesday, stalling the previous day's sharp retracement slide from the 0.8730 area, or the highest since April 7.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report EUR/USD has rebounded from 1.1607 but expects further gains to face strong resistance at 1.1685 in the near term.

The United Kingdom’s (UK) ILO Unemployment Rate climbed to 5.0% in the three months to March after reporting 4.9% in the previous reading, data published by the Office for National Statistics (ONS) showed on Tuesday.