The dollar is currently gaining ground against its major competitors on Tuesday. While some economic data out of Europe came in below expectations today, U.S. data was in line with expectations.
Import prices in the U.S. fell in line with economist estimates in the month of April, according to a report released by the Labor Department on Tuesday. The report said imports prices fell by 0.5 percent in April following a revised 0.2 percent drop in March. The drop in import prices matched economist estimates, while the data for the previous month was revised from the 0.5 percent decrease originally reported.
Meanwhile, the Labor Department said export prices slid 0.7 percent in April compared to a revised 0.5 percent decrease in March. Export prices had been expected to edge down by 0.1 percent.
A gathering of Eurozone finance ministers on Monday gave the green light to disbursement of bailout tranches to Cyprus and Greece. However, the ministers continued to squabble over the establishment of a proposed banking union.
The European Stability Mechanism, the euro area's permanent bailout fund, will provide a total of EUR 3 billion in its first-ever bailout payment to Cyprus. Of this, EUR 2 billion was disbursed on Monday.
At the same time, finance ministers observed that Cyprus needs to do more to strengthen the country's anti-money laundering framework. Cyprus should target areas covering implementation of customer due diligence by banks, including through adequate supervision, and the functioning of the company registry, among others, the Eurogroup said in a statement.
The ministers also approved EUR 7.5 billion aid disbursement to Greece. The payments will take place in two sub-tranches. A first sub-tranche of EUR 4.2 billion will be approved by the Eurogroup Working Group and the European Financial Stability Facility in the coming days.
The disbursement of the second sub-tranche will be made in June 2013. The Eurogroup said Greece has made "good progress" with implementing the required prior actions.
The meeting made little progress with the proposed banking union as the split between euro area states on the establishment of the single supervisory mechanism became more evident. While France, Spain and Portugal called for fast and full implementation of banking union, Germany insisted that it needs a treaty change and will take some time.
The dollar dipped to a low of $1.3028 against the Euro on Tuesday, but has since climbed to around $1.2960.
Industrial production in the Euro Area increased for the second successive month in March and at a significantly faster pace, driven by a marked gain in energy output, raising hopes that the currency bloc's ongoing recession likely eased, or perhaps ended, in the first quarter.
Industrial production advanced 1 percent month-on-month in March, notably faster than February's revised 0.3 percent rise, statistical office Eurostat said Tuesday. The growth rate was forecast to rise to 0.5 percent from the previous month's originally reported 0.4 percent. The increase was the strongest since July 2011.
Confidence among German investors increased less-than-expected in May as worries over the poor economic situation in Eurozone continued to weigh, results of a survey by the Centre For European Economic Research (ZEW) revealed Tuesday.
The ZEW indicator of economic sentiment rose marginally to 36.4 in May from 36.3 in April. This was notably below the score of 40 forecast by economists. The outcome was, however, better than in March, when the indicator fell by 12.2 points.
Germany's EU harmonized inflation weakened in April, and matched preliminary estimates, data released by the Federal Statistical Office showed Tuesday. Inflation as per the harmonized index of consumer prices (HICP), measured under the EU methodology, eased to 1.1 percent in April from 1.8 percent in March. The latest figure matched the flash estimates.
Germany's wholesale prices declined in April for the first time since November 2009, data published by the Federal Statistical Office showed Tuesday. Wholesale prices declined 0.4 percent in April from a year ago, reversing a 0.3 percent rise in March. However, the rate of fall was slower than the 0.6 percent drop forecast by economists.
France's current account shortfall decreased from the previous month in March, helped by a marked improvement in merchandise trade, data released by the Bank of France showed Tuesday. The current account deficit, on a seasonally and working-day adjusted basis, declined to EUR2.9 billion in March from EUR5 billion in February.
The greenback has extended its gains against the pound sterling to a fourth consecutive session Tuesday, reaching a 2 1/2 week high of $1.5227.
A leading indicator of the British economy increased for the third successive month in March, suggesting that the economy will continue to expand slightly over the near term, data from a survey by the Conference Board showed Tuesday.
The leading economic index increased 0.4 percent month-on-month to 102.8 in March, after recording a similar growth in the previous month.
A measure of house prices in the United Kingdom turned positive in April for the first time in almost three years as demand for housing outstripped supply, a survey by the Royal Institution of Chartered Surveyors (RICS) showed Tuesday.
The house price balance rose to 1 in April from -2 in March. This was the first positive reading for house prices since June 2010. Prices are beginning to improve "with not enough housing to meet increased demand," RICS said in the survey report.
The buck has risen above yesterday's range around the Y101.900 level against the Japanese Yen on Tuesday to Y102.294, its highest level since October of 2008.
An index measuring the prices of domestic corporate goods in Japan was up 0.3 percent on month in April, the Bank of Japan said on Tuesday, standing at 101.4. That beat forecasts for an increase of 0.1 percent, which would have been unchanged from the March reading.
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Forex News
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.