EUR/USD rebounds on Tuesday as Greenback bids wither
EUR/USD rose on Tuesday, clawing back most of the week’s starting losses. The pair is now testing back into the 1.1200 handle, thanks to a general broad-market weakening in the Greenback than any particular bullish momentum bootstrapping Euro market flows.
Market response to the US Consumer Price Index (CPI) inflation was largely subdued on Tuesday. Investors remain optimistic that ongoing trade deal negotiations between the Trump administration and various parties will sustain positive sentiment, although all trade tariff concessions offered by the Trump team have been strictly temporary.
In the US, CPI inflation reduced slightly in April, reaching a new three-year low for annualized headline inflation. Nonetheless, the Trump administration’s approach of enforcing triple-digit tariffs on key trading partners is anticipated to have repercussions starting in May, leading market experts to expect this will be the last strong CPI report for some time.
German Harmonized Index of Consumer Prices (HICP) are due during Wednesday’s European market session, but the non-preliminary figures are unlikely to generate much interest. Pan-European Gross Domestic Product (GDP) figures for the first quarter are also due on Thursday, but median market forecasts are expecting the figures to print similar to the previous quarter.
On the US side, inflation figures for the US Producer Price Index (PPI) and the latest Consumer Sentiment Survey from the University of Michigan are scheduled for release in the latter part of the trading week. The US PPI inflation data will be published on Thursday, followed by important consumer sentiment figures on Friday.
Source: Fxstreet
