| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | Germany | CPI, m/m | April | 0.3% | 0.4% | 0.4% |
| 06:00 | Germany | CPI, y/y | April | 2.2% | 2.1% | 2.1% |
USD fell against other major currencies in the European session on Tuesday, giving up more of its recent gains, bolstered by the U.S.-China trade truce, as investors prepared for the Federal Reserve’s chair Jerome Powell to give remarks on Thursday.
The U.S. Dollar Index (DXY), which measures the U.S. currency's value relative to a basket of foreign currencies, fell 0.39% from its previous close to 100.61.
Selling pressure in the U.S. currency resumed after yesterday’s cooler-than-expected U.S. April inflation data, showing the headline price pressures eased to 2.3% YoY, the lowest level since February 2021, supporting the case for at least two interest rate decreases by the Fed this year.
Though the latest inflation report did not reveal the inflationary impact of tariffs, some warn that the signs of the damage already done by Trump’s trade policies to the U.S. economy will emerge in the coming data. In particular, Chicago Fed president Austan Goolsbee said today that some part of the U.S. April inflation figures reflects the lagged nature of data and that it will take time for current inflation trends to show up in the data.
With the April CPI report out, investors’ focus is now shifting to the next major indicator of the U.S. economic health - the April retail sales statistics, which are set to be released on Thursday. The same day, the Fed’s chief Powell is scheduled to speak at a conference focused on monetary policy review. Markets hope both events will offer more clarity on the stance of the U.S. economy and the Fed’s policy path.