The dollar retreated on Tuesday, its slide accelerating after the publication of the Producer Price Index (PPI).
The $-Index retreated by -0.2%, returning to the 105.00 level.

The euro held firm against all currencies, gaining +0.3% against the greenback at around 1.0820, and +0.1% against the Swiss franc and the pound.

The yen continued its decline against all currencies, losing -0.2% against the dollar at 156.55 and -0.5% against the euro at 169.3.

On the figures front, German inflation came in at +2.2% (stable, at +2.4% in 'stabilized') and the ZEW index of German investor sentiment rose 4.2 points on April to stand at +47.1, confirming that economic conditions are gradually improving in Europe's leading economy.

In the United States, the Labor Department reports that PPI rose by 0.5% on a gross basis and by 0.4% excluding food (against an expected stability), energy and commercial services, in April compared with the previous month.

Over the last twelve months, producer prices rose by 2.2% on a gross basis (against 1.8% in March) and by 3.1% excluding food (against 2.8% in March).
This will not encourage the Fed to loosen its monetary policy any time soon: the latest statements by US central bank president Jerome Powell, speaking late this afternoon from Amsterdam (a conference organized by the Association of Foreign Banks in the Netherlands), point in this direction.
The Fed boss acknowledges that "the decline is slow" and that "we'll have to be patient before the inflation data move in the right direction".
Gold is proving resilient, holding steady at 2,356, while silver is up +1.3% at $28.55.



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