The British pound strengthened against other major currencies in the European session on Tuesday.

European stocks were subdued on Tuesday ahead of the release of Eurozone business activity data later in the day.

Asian stocks fell broadly on Tuesday as investors awaited crucial U.S. jobs and inflation readings for additional clues on the Fed's rate trajectory in the new year.

The Japanese yen strengthened against other major currencies in the Asian session on Tuesday, as traders speculate that the Bank of Japan or the BoJ is likely to increase its interest rate in the policy meeting held this week.

The antipodean currencies such as the Australia and the New Zealand dollars weakened against other major currencies in the Asian session on Tuesday amid increasing risk-off mood by the investors, with continued weakness in energy stocks as well as technology stocks on uncertainty remains about AI spending and the possibility of a tech bubble. Traders were also reluctant to make significant moves ahead of the release of some key U.S. economic data in the coming days, including retail sales and inflation.

The cryptocurrency market capitalisation fell by 2.7% to $2.94T. The sentiment index fell to 11, rolling back to its lowest level in precisely one month.

Brent crude oil fell to 60.00 USD per barrel on Tuesday, marking its lowest price since early 2021. The sell-off was driven by two primary factors: renewed speculation about progress in Russia-Ukraine peace talks and mounting fears of a global supply glut.

Markets are gearing up for a pivotal week as the Bank of England, ECB, and Bank of Japan announce policy decisions. With growth concerns, sticky inflation, and a likely BOJ rate hike in focus, central bank guidance could drive major Forex volatility and shape expectations for 2026.

Federal Reserve official John Williams said the policy has moved from “mildly restrictive” toward “neutral,” and expects inflation to ease next year. U.S. equities closed lower on Monday as investors positioned ahead of a heavy data week and assessed reports on potential Fed Chair candidates, along with policymakers’ comments for clues on the rate outlook.

Altcoin season is changing as Bitcoin maintains its central role while altcoins move in shorter, selective waves. These shifts increase volatility and risk, reflecting a maturing crypto market where trends are no longer broad or predictable.