| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 08:00 | Switzerland | SECO Consumer Climate | February | -41.1 | -35 | -42.3 |
USD slipped against most of its major rivals in the European session on Monday as investors waited for the release of the consumer price index (CPI) inflation data for February on Tuesday, hoping to get more hints on the Federal Reserve's policy path.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, edged down 0.02% from the previous close to 102.69, holding near its two-month low of 102.33 reached on Friday after the U.S. February employment situation report supported the case for the U.S. central bank to ease its monetary policy in the coming months.
As a reminder, Friday’s release pointed to a gradual cooling in the U.S. labour market by showing a quickening in nonfarm payrolls growth to 275,000 in February from a sharp downwardly revised 229,000 gain (from 353,000) in January but an increase in the unemployment rate to 3.9% from 3.7% and a deceleration in average hourly earnings growth to 4.3% YoY from a downwardly revised 4.4% YoY (from 4.5% YoY).
Currently, markets consider June the most likely month for the first rate decrease by the Fed, with the probability of the move estimated at 73.9%. However, these expectations could be recalibrated after tomorrow’s CPI report.
The headline CPI is forecast to remain unchanged at 3.1% YoY in February, and the core measure is predicted to ease to 3.7% YoY in February from 3.9% YoY in January.