FOREX TODAY: THE DOLLAR CONTINUES TO FALL AS INFLATION NUMBERS TAKE CENTER STAGE.

Australian survey results from the Westpac Consumer Confidence and the National Australian Bank's Business Confidence are due during the Asian session. The UK jobs report will be the main event later in Europe. In addition, traders will position themselves for a busy Wednesday that includes the US CPI, central bank announcements from the US, Canada, and New Zealand.

What you should be aware of on Tuesday, July 11 is as follows:

After a cautious start due to inflation statistics from China that suggested weaker demand. The Nasdaq increased by 0.18% while the Dow Jones increased by 0.62%. Less than 1% was lost in the price, while gold finished level at $1,925 per ounce. Investors' analysis of the Q2 earnings season will begin.

The Consumer Price Index (CPI) in June compared to predictions for a 0.2% increase, which was lower than the country's inflation rate. Under expectations of -5%, the Producer Price Index (PPI) decreased to -5.4% YoY. Evidence of deflation keeps the door open for additional stimulus.

During the American session, the US dollar declined as a result of data showing lower inflation forecasts and a drop in US Treasury yields. 10-year bonds dropped from 4.07% to 4.00%. The important US Consumer is due on Wednesday and will be crucial before the July 25–26 FOMC meeting.

Nonfarm Payrolls on Friday weighed on the US Dollar Index (DXY), which fell on Monday. It decreased for the third day in a row, dropping under 102.00, lowest daily closing in a month.

The recovery in bonds helped the Japanese Yen perform better than expected, beating out US inflation statistics. After failing to break above 145.00 and falling below 141.50, the USD/JPY pair continued to consolidate the 20-day Simple Moving Average (SMA) for the first time since April.

The momentum is still strong as the EUR/USD crossed the 1.1000 mark, helped by a declining US Dollar. The German ZEW Survey and the June German CPI final reading, which from the preliminary reading, will both be revealed on Tuesday.

GBP/USD climbed beyond 1.2850 to reach its best levels since April 2022. Governor of the Bank of England (BoE), Andrew Bailey, stated that they needed to “see the job through” in terms of inflation. On Tuesday, the UK jobs report is expected. EUR/GBP surged to a level close to 0.8600 before falling to 0.8550.

The USD/CAD briefly traded above 1.3300 before reversing course near 1.3280. The Bank of Canada (BoC) will publish its on Wednesday, and after Friday's labor market statistics beat forecasts, there are expectations for a rate increase.

National Bank of Canada analysts:

The Bank of Canada resumed the tightening cycle after a brief two-meeting hiatus, it gave the public notice. The Bank to again raise its overnight target by 25 basis points to 5% on Wednesday in the absence of a material worsening in economic data during the previous five weeks.

The AUD/USD pair ended in a flat range and maintained its sideways being supported by the 0.6600 region. Australia's consumer confidence data is due on Tuesday. The governor of the Reserve Bank of Australia, Philip Lowe, will speak on Wednesday.

Despite a slight increase on Monday, NZD/USD was unable to overcome the crucial short-term resistance level of 0.6220. On Wednesday, the Reserve Bank of New Zealand will make its choice public.