|06:00||Japan||Prelim Machine Tool Orders, y/y ||March||-10.7%|| ||-15.2%|
|09:00||Eurozone||Retail Sales (MoM)||February||0.8%||-0.8%||-0.8%|
|09:00||Eurozone||Retail Sales (YoY)||February||-1.8%||-3.5%||-3%|
USD depreciated against most of its major rivals in the European session on Tuesday as investors waited for the U.S. inflation data for March, which will be released on Wednesday and may prompt a revision of rate expectations from the Federal Reserve’s next meeting.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, fell by 0.38% to 102.17.
Economists’ forecasts suggest the U.S. headline inflation has cooled to an annualized rate of 5.2% last month from 6.0% in February, and core inflation has accelerated to 5.6% from 5.5% in February.
According to CME FedWatch Tool, markets are now pricing in a 67.8%-probability of a 25-basis-point rate hike at the Fed’s May meeting, which would lift the target range for the federal funds rate to 5.0-5.25%.
If tomorrow's CPI data show a stronger-than-anticipated deceleration in consumer price pressures in March, the markets may scale back their rate hike expectations.