Forex Today: Cautious start to the week ahead of Fedspeak

Here is what you need to know on Monday, July 10:

Following the selloff seen on Friday after the mixed US jobs report for June, the US Dollar (USD) stays resilient against its major rivals early Monday. US stock index futures trade in negative territory to reflect a cautious mood at the beginning of the week as investors await comments from Federal Reserve (Fed) officials, including San Francisco Fed President Mary Daly and Cleveland Fed President Loretta Mester.

Nonfarm Payrolls (NFP) in the US rose 209,000 in June, the US Bureau of Labor Statistics reported on Friday. This reading came in below the market expectation of 225,000. The Unemployment Rate edged lower to 3.6% from 3.7% in May as expected, while the annual wage inflation, as measured by the Average Hourly Earnings, stood unchanged at 4.4%, surpassing analysts' estimate of 4.2%. The USD came under heavy selling pressure and the US Dollar Index (DXY) dropped to a fresh two-week low of 102.22 late Friday. In the European morning, the DXY recovers toward 102.50.

Meanwhile, US Treasury Secretary Janet Yellen noted that the US and China still have significant disagreements but defined her bilateral meetings with senior Chinese officials as "direct" and "productive." US stock index futures are down between 0.4% and 0.6% in the European session. Earlier in the day, the data from China revealed that annual Consumer Price Index (CPI) stood unchanged in June and the Producer Price Index (PPI) declined 5.4% in the same period. 

EUR/USD climbed toward 1.1000 in the American session on Friday but started the new week on the back foot. As of writing, EUR/USD was trading in negative territory at around 1.0950. 

GBP/USD took advantage of the broad-based USD weakness and touched its highest level since April 2022 at 1.2851 on Friday. The pair stages a technical correction and declines toward 1.2800.

USD/JPY lost more than 200 pips and snapped a three-week winning streak last week. The pair holds steady at around 142.50 on Monday. In its recently published quarterly report, the Bank of Japan (BoJ) said that it raised its assessment for three of the country's nine economic regions.

Gold price gained traction on Friday and managed to erase its weekly losses. XAU/USD fluctuates in a tight channel slightly above $1,920 early Monday. Despite the mixed labor market data from the US, the benchmark 10-year US Treasury bond yield held above 4%, not allowing the pair to gather further bullish momentum.

Bitcoin edged lower over the weekend but managed to hold above $30,000. Ethereum stays relatively quiet at around $1,850 at the beginning of the week.