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US Dollar Rises Early Tuesday Ahead of April Consumer Prices

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The US dollar rose against its major trading partners early Tuesday ahead of the release of April consumer price data at 8:30 am ET.

Overall CPI is expected to rise by 0.6%, with core prices up 0.3%. The year-over-year rate is forecast to accelerate to 3.7% from 3.3%, and the core rate to 2.7% from 2.6%.

Weekly Redbook same-store sales are due to be released at 8:55 am ET, followed by an appearance by Chicago Federal Reserve President Austan Goolsbee at 1:00 pm ET and the US Treasury's monthly budget statement for April at 2:00 pm ET.

Earlier Tuesday, the NFIB reported that small business sentiment ticked up only slightly in April, noting that inflation concerns remain and that the economic outlook was less positive than in the previous month.

A quick summary of foreign exchange activity heading into Tuesday:

EUR/USD fell to 1.1744 from 1.1777 at the Monday US close and 1.1772 at the same time Monday morning. Eurozone economic sentiment improved in May but still indicated more pessimism than optimism. The next European Central Bank meeting is scheduled for June 11.

GBP/USD fell to 1.3537 from 1.3618 at the Monday US close and 1.3597 at the same time Monday morning. There are no UK data on Tuesday's schedule, but Bank of England Deputy Governor Sam Woods is due to speak at 1:30 pm ET. The next Bank of England meeting is scheduled for June 18.

USD/JPY rose to 157.5610 from 157.2476 at the Monday US close and 157.1355 at the same time Monday morning. Japanese household spending declined in March while the Japanese leading index improved in the same month, according to data released overnight. The next Bank of Japan meeting is scheduled for June 15-16.

USD/CAD rose to 1.3710 from 1.3678 at the Monday US close and 1.3662 at the same time Monday morning. There are no Canadian data on Tuesday's schedule. The next Bank of Canada meeting is scheduled for June 10.

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