| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | Germany | Producer Price Index (MoM) | April | 0.2% | 0.2% | 0.2% |
| 06:00 | Germany | Producer Price Index (YoY) | April | -2.9% | -3.2% | -3.3% |
| 09:00 | Eurozone | Trade balance unadjusted | March | 23.6 | 19.9 | 24.1 |
CAD fell against other major currencies in the European session on Tuesday as investors waited for the release of Canada’s consumer price index (CPI) report for April later in the day, which might reinforce June rate cut bets.
Economists expect the report - the last major pieces of data before the Bank of Canada’s June 5 meeting - will show the Canadian annual inflation rate slowed to 2.7% in April from 2.9% in the previous month. This would mark the lowest annual inflation rate since March 2021 (2.2%). The BoC’s preferred measure of core inflation - the trimmed-mean CPI - is seen to rise 2.9%, decelerating from 3.1% in March.
If inflation readings come lower than anticipated this might convince the BoC to cut interest rates at its June meeting.
The Canadian central bank's governor Tiff Macklem acknowledged earlier this month that the policymakers are getting closer to an interest rate cut but highlighted the necessity to see and the need to be confident that downward momentum in inflation is sustained.