Ella 
The major currency pairs struggled to make decisive moves in either direction early Tuesday, following Monday’s uneventful move. U.S. economic data for June included figures on retail sales and industrial production. Market participants will also pay close attention to Canadian consumer price index (CPI) data in the second half.
During the Asian trading session, China’s Ministry of Commerce announced that it will encourage enterprises to create online service platforms for household consumption services, and will increase credit support for consumption of household goods. The news failed to help improve risk sentiment, with the Shanghai Composite closing in the negative after falling nearly 1% on Monday. Meanwhile, U.S. stock futures edged lower after Wall Street’s main indexes enjoyed a bullish first session of the week.
The dollar index against a basket of currencies continued to trade below 100.00, weighed down by a drop in the benchmark 10-year U.S. Treasury yield of more than 1%. U.S. retail sales are expected to rise 0.5% in June.
Underlying support for the greenback was an expected surge in U.S. retail sales in June.
Minutes of the Reserve Bank of Australia’s July monetary policy meeting showed that policymakers agreed that further tightening of monetary policy may be needed and will reconsider the possibility of raising interest rates at the August meeting. AUD/USD traded higher during the Asian session but struggled to gather momentum. At press time, the pair was largely flat on the day, just above 0.6800.
EUR/USD climbed to 1.1276, the highest level since February 2022, in early trade on Tuesday, but then retreated to around 1.1250.
GBP/USD recorded a small decline on Monday but managed to shake off the bearish pressure. At press time, the pair was trading in a narrow channel below 1.3100.
Canadian CPI annual rate is expected to fall to 3.5% in June from 3.7% in May. USD/CAD remains in consolidation around 1.3200 ahead of key inflation data.
Canada CPI Preview: Big 5 banks forecast an improvement in inflation, but not good enough.
Following Monday’s recovery attempt, USD/JPY is under renewed bearish pressure and last traded in negative territory around 138.00.
Gold benefited from a drop in U.S. Treasury yields early Tuesday and hit its highest level in a month above $1,960 an ounce.
Bitcoin continued to slide lower, trading below $30,000 early Tuesday. Ethereum closed in the negative for the fourth straight session on Monday, down nearly 1% on the day, just below $1,900.
