US dollar falls after inflation data
The US dollar fell against most major rivals on Tuesday as trade tensions cooled and after important inflation data.
Earlier data showed US consumer prices rose 2.3% y/y in April, down from 2.4% in March, and below estimates of 2.4%.
US core prices, excluding food and energy, rose 2.8% in April, same as March and matching estimates.
US consumer prices rose 0.2% m/m in April, below estimates of a 0.3% rise, and compared to March's 0.1% contraction.
The US and China announced a massive cut in reciprocal tariffs for 90 days amid efforts to contain trade tensions and reach a resolution.
According to the temporary agreement, the US will cut tariffs from 145% to 30%, including a 20% tariff related to fentanyl, while China will cut tariffs from 125% to 10%.
In addition, Trump also reduced tariffs on small Chinese packages, worth less than $800, from 120% to 54%.
Otherwise, the dollar index fell 0.8% as of 20:23 GMT to 101, with a session-high at 101.7, and a low at 100.9.
Aussie
The Australian dollar rose 1.6% as of 21:11 GMT against its US counterpart to $0.6475.
Loonie
The Canadian dollar rose 0.3% against the US dollar as of 21:11 GMT to $0.7175.
Gold climbs and attempts to recoup recent losses
Gold prices rose on Tuesday as the dollar index fell against most major rivals, with the precious metal attempting to recover some of yesterday’s 3.5% losses.
Earlier data showed US consumer prices rose 2.3% y/y in April, down from 2.4% in March, and below estimates of 2.4%.
US core prices, excluding food and energy, rose 2.8% in April, same as March and matching estimates.
US consumer prices rose 0.2% m/m in April, below estimates of a 0.3% rise, and compared to March's 0.1% contraction.
The US and China announced a massive cut in reciprocal tariffs for 90 days amid efforts to contain trade tensions and reach a resolution.
According to the temporary agreement, the US will cut tariffs from 145% to 30%, including a 20% tariff related to fentanyl, while China will cut tariffs from 125% to 10%.
In addition, Trump also reduced tariffs on small Chinese packages, worth less than $800, from 120% to 54%.
Otherwise, the dollar index fell 0.8% as of 20:23 GMT to 101, with a session-high at 101.7, and a low at 100.9.
On trading, gold spot prices rose 0.8% as of 20:25 GMT to $3254.6 an ounce.
NASDAQ leads Wall Street higher towards 19,000 points
Most US stock indices, except the Dow, rose on Tuesday, led by the tech sector as the trade tensions cooled.
Earlier data showed US consumer prices rose 2.3% y/y in April, down from 2.4% in March, and below estimates of 2.4%.
US core prices, excluding food and energy, rose 2.8% in April, same as March and matching estimates.
US consumer prices rose 0.2% m/m in April, below estimates of a 0.3% rise, and compared to March's 0.1% contraction.
The US and China announced a massive cut in reciprocal tariffs for 90 days amid efforts to contain trade tensions and reach a resolution.
According to the temporary agreement, the US will cut tariffs from 145% to 30%, including a 20% tariff related to fentanyl, while China will cut tariffs from 125% to 10%.
In addition, Trump also reduced tariffs on small Chinese packages, worth less than $800, from 120% to 54%.
On trading, Dow Jones fell 0.3% as of 15:09 GMT, or 144 points to 42265 points, while S&P 500 rose 0.6%, or 33 points to 5877 points, as NASDAQ rallied 1.1%, or 211 points to 18,912 points.
Palladium climbs as the dollar dips, trade tensions cool
Palladium prices rose on Tuesday as the dollar declined against most major rivals following US inflation data, while US-China trade tensions cooled.
US consumer prices rose 2.3% y/y in April, down from 2.4% in March, and below estimates of 2.4%.
US core prices, excluding food and energy, rose 2.8% in April, same as March and matching estimates.
US consumer prices rose 0.2% m/m in April, below estimates of a 0.3% rise, and compared to March's 0.1% contraction.
The US and China announced a massive cut in reciprocal tariffs for 90 days amid efforts to contain trade tensions and reach a resolution.
According to the temporary agreement, the US will cut tariffs from 145% to 30%, including a 20% tariff related to fentanyl, while China will cut tariffs from 125% to 10%.
US Treasury Secretary Scott Bessent hailed the “very productive talks” with Chinese counterparts, and praised the place of negotiations besides the serene Geneva lake.
Bessent asserted the tariff pause will carry on for 90 days with both sides cutting tariffs by 115%.
Bessent said cutting tariffs below 10% wouldn’t be feasible, but the level specified by President Trump in early April at 34% would be a “ceiling”.
Otherwise, the dollar index fell 0.4% as of 14:55 GMT to 101.4, with a session-high at 101.7, and a low at 101.2.
Palladium June futures rose 0.6% as of 14:56 GMT to $947.5 an ounce.