Dollar rises on higher yields, focus on European ZEW data and US inflation.

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This is what you need to know to trade today tuesday april 12:

In the absence of high-level macroeconomic data releases on Monday, the dollar took advantage of safe-haven flows and continued to strengthen against its rivals. Ahead of the ZEW sentiment survey results for the Eurozone and Germany, markets remain risk averse on Tuesday. Later in the day, the Consumer Price Index (CPI) data will be presented on the US economic calendar. Meanwhile, the 10-year US Treasury bond yield is at its highest level since December 2018, above 2.8%. An auction of 10-year US Treasury bonds will take place around 1700 GMT.

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The UK Ministry of Defense said on Tuesday that fighting in eastern Ukraine was expected to intensify in the next two to three weeks. Earlier in the day, Ukrainian President Volodymyr Zelenskyy signaled that they take the threat of Russia using chemical weapons seriously. In addition, the German foreign minister announced on Monday that the EU foreign ministers agreed to increase arms deliveries to Ukraine. Reflecting the gloomy market mood, US stock index futures are down 0.3%-0.5% in European morning trading.

The EUR/USD rallied to 1.0950 on Monday, but turned south in the second half of the day to close below 1.0900. The pair remains under bearish pressure on Tuesday, touching two-day lows at 1.0860. The ZEW survey is expected to reveal a deterioration in economic sentiment in the eurozone and Germany in April. German inflation data showed a 7.3% annual rise in March, its biggest increase since unification.

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The GBP/USD remains defensive and borders lower towards 1.3000. UK reported on Tuesday that the ILO unemployment rate fell to 3.8% in the three months from December to February. Wage inflation, measured by average earnings including bonuses, rose to 5.4% annually from 4.8% in January.

The USD/JPY continues to rise and is trading at its highest level since June 2015 above 125.50. The yield on the 10-year US Treasury note, which gained more than 13% last week, is already up 4% this week.

The Prayed hit a new multi-week high near $1,970 on Monday thanks to safe-haven flows, but pulled back below $1,960. XAU/USD is trading in a relatively tight channel around $1,955 in the European session.

The Bitcoin It fell to its lowest level in nearly a month on Monday and is trading just shy of $40,000 on Tuesday. The ethereum tests the $3,000 zone after losing 7% on Monday.

Source: Fx Street

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