Following Monday's choppy action, major currency pairs seem to have stabilized early Tuesday. Eurostat will release Harmonized Index of Consumer Prices for June in the European session. Later in the day, European Central Bank (ECB) President Christine Lagarde and Federal Reserve (Fed) Chairman Jerome Powell will speak on the policy outlook at the ECB Forum on Central Banking in Sintra. The US economic calendar will also feature JOLTS Job Openings data for May.

The US Dollar (USD) started the week on a weak note but managed to stage a rebound later in the American session. Despite the disappointing ISM Manufacturing PMI data for June, the USD benefited from rising US Treasury bond yields and the USD Index closed the day virtually unchanged. In the European morning on Tuesday, the index stays in a consolidation phase slightly below 106.00 and the benchmark 10-year US Treasury bond yield holds steady at around 4.45%. Meanwhile, US stock index futures trade marginally lower on the day.