The USD resumed its downtrend after weeks of consolidation, and the EURUSD pair jumped above 1.2130, now nearly 200 pips higher from its last week's lows.
US 10-yields are seen rising, trading near 10-month highs near 1.2%, driving the real yields somewhat lower in the longer maturities. That could be negative for precious metals.
Later in the day, US CPI numbers are due, with the year-on-year inflation expected to rise from 1.4% to 1.5%, and the core gauge should slip lower to 1.5%. The CPI is an interesting measure as all commodities are rallying vertically, and CPIs are only at 1.5%.
More importantly, the Federal Reserve Chair Jerome Powell is due to speak at a webinar hosted by the Economic Club of New York. His remarks will be closely watched and might cause volatility in the financial markets.
Meanwhile, Chinese PPI rose in annual terms in January for the first time in a year, but CPI dropped to negative territory YoY. That means more monetary easing might come soon in China.