This is what you need to know to trade today tuesday july 12:
The DXY dollar index continues to rise early Tuesday after gaining more than 1% on Monday. The dollar continues to find demand as safe haven amid growing fears of a recession. US stock index futures are down 0.8%-1% in European morning trading with DXY trading at its highest level in nearly two decades above 108.00. The Germany ZEW survey and data on US business sentiment will serve to provide further impetus. The 10-year US Treasury bond auction is scheduled for 17:00GMT. The 10-year US Treasury bond yield is down more than 2% on the day at 2.925%, highlighting markets’ risk aversion.
To contain new infections of the BA4 and BA5 omicron subvariants, China has announced that the city of Wugang, in Henan province, has gone into isolation. Market participants continue concerned about the possibility of Shanghai also going into lockdownas the number of daily confirmed cases is increasing in the city.
In the meantime, Europe faces a heightened risk of entering an energy crisis. On Monday, German Economy Minister Robert Habeck said it would be difficult to say whether the Nord Stream 1 pipeline would be operational again after maintenance.
On Monday, the Federal Reserve Bank of New York’s monthly survey of consumer expectations showed that US consumer one-year inflation expectations rose to 6.8% in June, from 6.6% in May. Although three-year inflation expectations eased to 3.6% from 3.9%, the dollar continued to outperform its rivals. Ahead of Wednesday’s CPI consumer price index data, White House press secretary Karine Jean-Pierre told reporters she expected the CPI data to be “very high.”
The pair EUR/USD fell to its lowest level since December 2002 and now trades one step away from the important parity.
The GBP/USD it lost more than 1% on Monday and extends its decline early on Tuesday. The pair is currently trading at its lowest level in more than two years, below 1.1850.
The USD/JPY remains relatively calm above 137.00 on Tuesday, after Monday’s impressive rally. The yen manages to find demand as a safe haven and remains resilient against its rivals so far.
The Prayed erased its losses after falling to a new 2022 low below $1,730. Falling US Treasury yields appear to be helping XAU/USD find support.
The Bitcoin It dipped below $20,000 during the Asian session and hit a daily low of $19,594 before recovering modestly. The ethereum down more than 2% on the day and close to $1,000.
Source: Fx Street
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