| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:45 | France | CPI, m/m | April | 0.2% | 0.5% | 0.5% |
| 09:00 | Eurozone | Industrial production, (MoM) | March | 1.0% | 0.5% | 0.6% |
| 09:00 | Eurozone | GDP (QoQ) | Quarter I | -0.1% | 0.3% | 0.3% |
| 09:00 | Eurozone | GDP (YoY) | Quarter I | 0.1% | 0.4% | 0.4% |
USD depreciated against other major currencies in the European session on Wednesday as investors waited for the release of the U.S. April CPI figures later in the day, hoping for clues on the Federal Reserve’s interest rate path.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.15% from the previous close to 104.86.
Economists expect the crucial U.S. April inflation report to show the headline consumer price index increased 3.4% YoY last month, decelerating marginally from 3.5% YoY in the previous month, while the core CPI rose 3.6% YoY, moderating from 3.8% YoY in March.
Yesterday's report on the U.S. producer prices showed a rebound in both headline and core PPI figures in April - to 2.2% y/y and 2.4% y/y, respectively - but the noticeable downward revisions to March's prints urged markets to interpret the data as mixed rather than unfavourable.
Markets believe that if today's CPI report does not confirm that the downward trend in inflation remains intact, it will convince the Fed’s policymakers to delay the interest rate cuts, maybe even into 2025.
According to the CME FedWatch Tool, markets expect two rate decreases from the U.S. central bank in 2024, with the first move coming in September.