The dollar was up against all of its major competitors in early trade Tuesday, but has recently reversed direction and is now down against the Euro on the day. St. Louis Federal Reserve Bank President James Bullard stated today, during a speech to an economic conference in Frankfurt, that the Federal Reserve should continue with its present bond-buying program and adjust the rate of purchases in view of incoming data on growth and inflation.
The Federal Open Market Committee is scheduled to release the minutes from its most recent meeting Wednesday and Fed Chairman Ben Bernanke will testify before the Joint Economic Committee of Congress.
Germany's economic activity is likely to improve markedly in the second quarter, the Bundesbank said in its monthly report on Tuesday.
Bundesbank sees "catch-up effects" in the construction sector. In addition, the central bank expects noticeable increase in industrial new orders to underpin exports and investment.
Nonetheless, the bank said there remains significant macroeconomic risks from euro area crisis.
The dollar climbed to a high of $1.2840 against the Euro on Tuesday, but has since dropped to a 3-session low of $1.2915.
Germany's producer price inflation slowed for the third consecutive month in April, data released by the Federal Statistical Office revealed Tuesday.
Producer prices rose only 0.1 percent in April from a year ago, following a 0.4 percent increase in March. This was the lowest annual rate since March 2010. Economists had forecast an increase of 0.2 percent for April.
France's leading economic index strengthened throughout the first quarter, suggesting that economic activity may begin improving in the near term, the Conference Board said Tuesday. The leading index rose 0.5 percent each in March and February. During the six-month span through March, the index gained 1.1 percent, as four of the seven components increased, it said.
The greenback rose to a month and a half high of $1.5111 against the pound sterling Tuesday, but has since pulled back to around $1.5165.
U.K. consumer price inflation slowed more-than-expected to a seven-month low in April on falling petrol and air fares, official data revealed Tuesday. The slowdown provides relief for consumers as it raises purchasing power, while it gives more scope for the central bank to ease monetary policy.
Annual inflation fell to 2.4 percent from 2.8 percent in March, the Office for National Statistics said. Inflation was expected to ease to 2.6 percent.
Output prices inflation in British factory sector eased more than expected in April, data from the Office for National Statistics showed Tuesday. Output prices of goods produced by British manufacturers increased 1.1 percent year-on-year in April, slower than a 1.9 percent gain in March. Economists expected a 1.4 percent rise.
House price inflation in the UK increased more than forecast in March, a report from the Office for National Statistics showed Tuesday. The ONS house price index rose 2.7 percent year-on-year in March, faster than a 1.9 percent gain in February. Economists expected the rate of inflation to edge up to 2 percent.
The buck climbed to a high of Y102.876 against the Japanese Yen on Tuesday, but has since retreated to around Y102.400.
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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.