Meanwhile, the USDJPY pair rose above 106 for the first time since October.
Investors are now focusing on rising US yields. The benchmark 10-year U.S. Treasury yield rose 9 basis points on Tuesday to top 1.3%, a level not seen since February 2020. Should the recent spike in yields continue, it could cause a VaR shock among large investors as higher yields usually cause declines in equity markets.
Stronger USD and rising yields are normally a nightmare for precious metals, and there is no exception nowadays. Both gold and silver were sold-off hard, with gold falling to fresh three-month lows below 1,785 USD. Silver managed to stay above 27 USD for now.
Later in the day, US retail sales for January are due, with investors expecting a notable improvement from the December values.
Moreover, Canadian CPIs will be released, most likely influencing the USDCAD pair.
Additionally, the FOMC minutes from the latest Fed's decision are on the agenda in the evening. The Fed sounded dovish at its last meeting, and today's minutes are expected to confirm that bias, possibly sending equities higher.