| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 07:00 | Switzerland | SECO Consumer Climate | April | -38 | -40 | -38.1 |
USD traded flat and mixed against other major currencies in the European session on Monday
as investors prepared for the release of the U.S. consumer price index (CPI) and producer price index (PPI) data later this week.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, slipped 0.04% from the previous close to 105.26.
Markets hope the two crucial reports - Tuesday’s PPI and Wednesday’s CPI - will provide more certainty about whether the Federal Reserve could start policy easing in 2024 and by how much.
Economists anticipate the reports will show a 2.2% YoY increase in PPI (up from 2.1% YoY in March) and a 3.4% YoY rise in CPI (down from 3.5% YoY in March).
The Fed’s policymakers have continued highlighting the need to see clear evidence that inflation is moving surely to the 2% target. Thus, hotter-than-anticipated April inflation reports might convince them to delay the interest rate cuts, maybe even into 2025.
According to the CME Group's FedWatch tool, markets now expect at least two 25-basis-point rate decreases from the U.S. central bank in 2024, with the first move likely coming in September.