| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | Germany | Producer Price Index (YoY) | April | -0.2% | -0.7% | -0.9% |
| 06:00 | Germany | Producer Price Index (MoM) | April | -0.7% | -0.3% | -0.6% |
| 08:00 | Eurozone | Current account, adjusted, bln | March | 34.3 | 35.9 | 50.9 |
GBP traded mixed against other major currencies in the European session on Tuesday, as investors digested the latest remarks from the Bank of England’s chief economist Huw Pill, who advocated for a slower pace of interest rate cuts.
The pound rose against versus AUD, fell versus CHF, SEK and JPY, and changed little versus CAD, USD and EUR.
Pill, who voted against an interest rate cut at last week's BoE meeting, argued that the quarterly pace of 25-basis-point rate decreases in the Bank Rate seen since last summer is “too rapid” given inflation concerns. The policymaker warned that “structural changes in price and wage-setting behaviour have increased the intrinsic persistence of the UK inflation process.“ Pill also called for a more “cautious” approach to further rate reduction.
Investors will pay attention to the UK’s April consumer price index (CPI) data tomorrow. Economists forecast the headline CPI to show a 3.3% YoY gain, sharply up from 2.6% YoY in the previous month, and the core indicator to post a 3.6% YoY advance, up from 3.4% YoY.