US dollar trading roughly flat ahead of July’s PPI statistics.

The US Dollar (USD) trades mixed on Tuesday, extending Monday’s minor movements, with a single pattern standing out on the quote board.

Carry and high-beta currencies are pushing back against the US dollar.

The hurtled carry and high-beta trades that were on the fence last week are now outperforming the Greenback, with the Polish Zloty (PLN), Australian Dollar (AUD), New Zealand Dollar (NZD), and Czech Koruna (CZK) the top gainers.

The US Dollar index remained stuck at 103.18, its critical level.

However, these movements are not visible on the DXY chart since the US Dollar is outperforming the Japanese Yen (JPY).

On the economic data front, the calendar is starting to fill up. The Producer Price Index (PPI) will be the primary topic of discussion on Tuesday as the US Consumer Price Index (CPI) is released on Wednesday. Overall, PPI statistics are likely to fall across the board, supporting the view that inflation pressures are easing.

Daily Market movers: PPI data ahead.
The NFIB Business Optimism Index rose to 93.7 in July from 91.5 in June.

At 12:30 GMT, the US Producer Price Index data for July will be announced.
Monthly headlines PPI is predicted to rise 0.1%, lower than the 0.2% gain reported a month ago. On year, headline PPI is also expected to soften. to 2.3% from 2.6%.
In terms of core measures, the monthly Core PPI is predicted to grow 0.2%, slowing from the 0.4% increase seen the previous month. Annual core PPI should fall below 3%, to 2.7%.
Around 17:15 GMT, Federal Reserve Bank of Atlanta President Raphael Bostic takes part in a moderated discussion at the Conference of African American Financial Professionals in Atlanta, United States.

Equity markets are bursting out of the gate, with strong gains in Asia.

Equity markets are bursting out of the gate, with strong gains in Asia. The Japanese TOPIX and Nikkei indexes are both closing nearly 3% higher. European shares are failing to hold on to their gains, falling into negative territory, while US futures are relatively steady.
The CME Fedwatch Tool suggests a 52.5% possibility of a 25 basis points (bps) interest rate. The Fed lowered rates in September, with a 47.5% chance of doing so by 50 basis points. Another 25 basis point decrease (assuming September is a 25 basis point cut) is projected in November by 38.5%, with a 49.7% chance that rates will be 50 basis points lower than current levels and an 11.7% possibility that rates will fall 75 basis points.
The US 10-year benchmark rate is 3.89%, falling further from 4%.