| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | United Kingdom | Halifax house price index Y/Y | April | 1.6% | | 0.1% |
| 06:00 | United Kingdom | Halifax house price index | April | 0.8% | 0.2% | -0.3% |
| 06:45 | France | Trade Balance, bln | March | -9.302 | -9.3 | -8.023 |
USD traded mixed against other major currencies in the European session on Tuesday as investors waited for the release of U.S. CPI data for April on Wednesday, which might provide more clues on the Federal Reserve’s future policy steps.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, rose by 0.25% to 101.64.
In the wake of last week’s signal of a pause in the Fed’s rate-raising cycle by its chair Jerome Powell, markets now see the interest rates in the U.S. are likely to remain unchanged at the next two meetings of the Fed - in June and July - after which the U.S. central bank will likely start to reduce rates, with at least two quarter-point rate cuts priced in by year-end.
The U.S. key inflation prints are forecast to show the headline rate has steadied at 5.0% while the core rate has slipped to 5.5% from 5.6% in March.
A hotter or cooler CPI data might impact markets’ expectations of the Fed’s future policy path.
Also, markets continue to monitor developments in Washington, where U.S. lawmakers are struggling to find a compromise on a debt-ceiling increase. U.S. President Joe Biden will meet with House Speaker McCarthy and other Congressional leaders later today.