Here is what you need to know on Tuesday, July 11:
The US Dollar (USD) started the week on a bullish note but came under selling pressure in the American session to close in the day in negative territory on Monday. The USD continues to weaken against its rivals amid improving risk sentiment early Tuesday, with the US Dollar Index falling to its lowest level in two months below 102.00. ZEW survey for the Eurozone and Germany will be featured in the European economic docket ahead of NFIB Business Optimism and IBD/TIPP Economic Optimism data from the US. Market participants will continue to pay close attention to comments from central bankers.
Following a mixed opening on Monday, Wall Street's main indexes registered modest daily gains. In the European morning, US stock index futures are up between 0.2% and 0.3%. Meanwhile, the 10-year US Treasury bond yield is already down nearly 1% on the day below 4%.
The Federal Reserve Bank of New York's monthly Survey of Consumer Expectations showed on Monday that the US consumers' one-year inflation expectation dropped to the lowest level since April 2021 at 3.8% in June from 4.1% in May.
EUR/USD climbed to its strongest level since early May above 1.1000 on Tuesday. The data from Germany showed that the annual Consumer Price Index (CPI) rose 6.8% in June, matching the flash estimate and the market expectation.
GBP/USD rose above 1.2900 for the first time since April 2022 on Tuesday. The UK's Office for National Statistics announced on Tuesday that the annual wage inflation, as measured by Average Earnings Excluding Bonus, held steady at 7.3% in three months to May, surpassing the market expectation of 7.1%. The ILO Unemployment Rate edged higher to 4% from 3.8% in the same period.
USD/JPY continues to push lower and trades at its lowest level in three weeks at around 140.50.
Fuelled by retreating US yields, Gold price advanced toward $1,940 during the Asian trading hours and touched its highest level since June 20. In the European morning, XAU/USD stages a downward correction but manages to hold above $1,930.
NZD/USD trades in a tight channel at around 0.6200 early Tuesday. In the Asian session on Wednesday, the Reserve Bank of New Zealand (RBNZ) will announce monetary policy decisions. The RBNZ is forecast to leave the key interest rate unchanged at 5.5%.
Bitcoin registered small daily gains on Monday after having found support at $30,000. BTC/USD holds steady near $30,500 on Tuesday. Ethereum rose nearly 1% on Monday and continues to stretch higher toward $1,900 in the European morning.
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