- EUR/USD recovered ground after hesitating early Tuesday.
- US PPI inflation ticked higher in the near-term, but rate cut bets hold steady.
- EU GDP growth, US CPI inflation prints due Wednesday.
EUR/USD recovered ground on Tuesday, vaulting back over the 1.0800 handle and settling near 1.0820 at the tail end of the American market session. The pair is heading into a densely-packed economic data docket on Wednesday, with European Gross Domestic Product (GDO) and US Consumer Price Index (CPI) inflation figures due throughout the day.
US Producer Price Index (PPI) figures came in mostly as-expected on Tuesday, with annualized Core PPI printing at the forecast 2.4% YoY, but this figure showed a near-term uptick in prices after the previous period’s figure was revised down to 2.1% from the initial print of 2.4%.
Read more: US annual PPI inflation rises to 2.2% in April as expected
May’s pan-European ZEW Economic Sentiment Survey results helped to bolster the Euro after a cautious step forward in consumer sentiment. The ZEW Economic Sentiment Survey improved to 47.0, above the forecast 46.1 and rising from the previous month’s 43.9. The survey printed at its highest figure since February of 2022.
Coming up on Wednesday, European GDP growth is expected to come in at 0.3% in the first quarter. Annualized GDP growth is likewise forecast to hold steady at 0.4% QoY.
US CPI inflation on Wednesday is expected to hold steady at 0.4% MoM, with YoY CPI in April forecast to tick down to 3.4% from the previous 3.5%. Core CPI inflation will draw investor eyes, and is forecast to tick down to 3.6% YoY versus the previous 3.8%. US Retail Sales are also expected to cool off slightly, with April’s MoM Retail Sales expected to grow 0.4% compared to the previous 0.7%.
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