The European currency (EUR) has gained some upward momentum, prompting EUR/USD to ignore two consecutive daily declines and resume its recent upward trend on turnaround Tuesday.

This improved sentiment towards riskier assets can be attributed in part to the People's Bank of China's (PBoC) recent decision to cut its 1-year medium-term lending facility (MLF) by 10 bps, aimed at bolstering the Chinese economy as it emerges from the pandemic.

Investors are closely monitoring the potential interest rate decisions by the Federal Reserve and the European Central Bank (ECB), with both expected to resume their hiking campaigns in July.

In Germany, Producer Prices declined by 1.4% MoM in May but rose by 1.0% YoY, while Current Account and Construction Output data will be released in the broader Euroland before speeches by ECB's Board members E. McCaul and L. De Guindos.

In the US, the housing sector will be the primary focus, with speeches by St. Louis Fed member J. Bullard (a hawkish 2025 voter) and NY Fed member J. Williams (a centrist permanent voter) also on the agenda