The dollar is falling against all of its major competitors on Tuesday. The losses accelerated following the release of the weaker than expected Chicago PMI data.
Chicago-area business activity unexpectedly contracted in the month of April, according to a report released by the Institute for Supply Management - Chicago on Tuesday, with the reading on regional business activity falling to its lowest level in over three years.
The ISM Chicago said its business barometer fell to 49.0 in April from 52.4 in March, with a reading below 50 indicating a contraction in regional business activity. The drop came as a surprise to economists, who had expected the business barometer to come in unchanged compared to the previous month.
Home prices major U.S. metropolitan areas increased by more than expected in the month of February, according to a report released by Standard & Poor's on Tuesday. The report showed that the S&P/Case-Shiller 20-City Composite Home Price Index increased by an annual rate of 9.3 percent in February compared to the 8.1 percent increase reported for January.
The year-over-year growth in home prices in February exceeded economist estimates for a 9.0 percent increase and reflected the strongest growth since May of 2006.
After reporting a substantial deterioration in U.S. consumer confidence in the previous month, the Conference Board released a report on Tuesday showing that consumer confidence rebounded by more than expected in April.
The Conference Board said its consumer confidence index jumped to 68.1 in April from an upwardly revised 61.9 in March. Economists had expected the index to climb to 62.0 from the 59.7 originally reported for the previous month.
The dollar rose to an early high of $1.3053 against the Euro Tuesday morning, but has since dropped to a 2-week low of $1.3185.
A record high unemployment rate and a faster-than-expected slowdown in inflation to a 3-year low amid easing economic sentiment across Eurozone have intensified the pressure on the European Central Bank to ease monetary policy early May to revive the economy reeling under recession.
An increase of 62,000 unemployed in March took the jobless rate to a new record of 12.1 percent, from 12 percent in February, the report released by Eurostat showed Tuesday. The rate matched economists' expectations.
Eurozone's annual inflation weakened for the fourth successive month in April, and was below economists' expectations, preliminary estimates showed Tuesday.
Inflation as per the harmonized index of consumer prices (HICP) eased to 1.2 percent in April from 1.7 percent in March, statistical office Eurostat said. Inflation slowed for the fourth month in a row. Economists had forecast a more modest decline to 1.6 percent.
German consumer mood is set to improve again in May, reports said citing a survey by market research group GfK on Tuesday. The headline consumer confidence index for May rose to 6.2 from April's revised reading of 6. Economists expected the reading to remain unchanged from April's original score of 5.9.
Germany's unemployment increased at a faster-than-expected pace in April as the extreme cold weather kept employees out of work for an unusually long period, raising concerns that the reduced economic activity could weigh on recovery prospects.
The number of unemployed persons increased by 4,000 month-on-month to around 2.94 million in April, after rising by around 12,000 in March, the Federal Labor Agency said Tuesday. The number of jobless was forecast to increase by 2,000.
Germany's retail sales decreased at a slower pace in March, and the rate of fall matched economists' expectations, latest data showed Tuesday. Retail sales turnover, in real terms, decreased a seasonally and working-day adjusted 0.3 percent sequentially in March, after falling 0.6 percent in February, the Federal Statistical Office said. The rate of fall for March matched economists' forecast.
France's producer prices inflation in the domestic market surpassed economists' expectations in March, latest data showed Tuesday. The domestic producer price index increased 1.9 percent on an annual basis in March, statistical office Insee said. The rate of growth exceeded the 1.4 percent forecast by economists.
Consumer spending in France increased more than expected in March, data from statistical office Insee showed Tuesday. Total household consumption expenditure on goods increased 1.3 percent month-on-month in March. This was stronger than a 0.2 percent growth forecast by economists and followed a 0.2 percent decrease in February.
Recession in Spain eased in the first quarter helped by a renewed vigor in foreign demand amid record-high unemployment, which has prompted the government to slow austerity. Gross domestic product fell 0.5 percent quarter-on-quarter in the first quarter, slower than a 0.8 percent slump in the final three months of 2012, preliminary data from the statistical office INE showed Tuesday. However, the GDP has now contracted for six consecutive quarters, data showed.
U.K. inflation is more likely to fall by early next year to "quite close" to 2 percent, Bank of England policymaker David Miles said in an interview with the Belfast Telegraph newspaper. Inflation will hover around a level just below 3 percent during much of 2013, he said.
Miles expects the period of substantial squeeze on household incomes to end, the interview published on Tuesday revealed. Britons real wage growth has been lagging behind inflation over recent years, restraining spending.
The buck hovered around the $1.5485 level against the pound sterling in early trade Tuesday, but has since pulled back to a 2 1/2 month low of $1.5568.
Confidence among British consumers fell slightly in April as households turned less optimistic about their personal financial situation in the next 12 months, a survey by GfK NOP revealed Tuesday. The consumer confidence index fell to -27 in April from -26 in March. Economists had forecast the reading to remain at previous month's level.
The greenback has pulled back from an early high of Y98.115 against the Japanese Yen, to around Y97.510.
Japan's housing starts growth accelerated more than expected in March, while construction orders received by big contractors declined after surging in February.
Housing starts grew at a pace of 7.3 percent from a year ago, faster than the 3 percent increase seen in February and 5 percent growth in January, the Ministry of Land, Infrastructure, Transport and Tourism said Tuesday. The increase also exceeded a 6 percent rise forecast by economists.
Japan's industrial output growth slowed more than forecast in March, while retail sales continued its downtrend, vindicating the actions of the central bank, which recently announced massive stimulus measures aimed at boosting growth.
Industrial production rose 0.2 percent month-on-month in March decelerating from the 0.6 percent increase in February, preliminary data from the Ministry of Trade and Industry revealed Tuesday. Economists expected a more modest slowdown in output growth to 0.4 percent. Nevertheless, production was up for a fourth consecutive month.
The ministry also reported that retail sales fell 0.3 percent year-on-year in March compared with expectations for 0.4 percent growth. This followed a 2.2 percent drop in February and a 1.1 percent fall in January.
Japan's automobile production declined 16.4 percent year-on-year in March, bigger than the 15.1 percent fall seen in February, the Japan Automobile Manufacturers Association said Tuesday.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.