Anna 
In European trading, the EUR/USD pair edged up by 0.1% to 1.0861 on Tuesday, showing minimal movement despite a significant drop in German producer prices. Data revealed a 3.3% year-on-year decline in April, primarily driven by lower energy costs.
Excluding energy prices, German producer prices were 0.6% lower compared to April 2023. This decline in inflation within the eurozone’s largest economy may support European Central Bank (ECB) officials in considering an interest rate cut in June.
“We are not expecting major swings today as the data calendars in the eurozone and US are light,” commented analysts at ING. They added that a speech by ECB President Christine Lagarde, scheduled for today at an event honoring Janet Yellen, might not address monetary policy.
Elsewhere, GBP/USD moved slightly higher to 1.2709, trading within a narrow range as markets await the release of April’s U.K. CPI data on Wednesday. The annual inflation rate is anticipated to have slowed significantly, approaching the Bank of England’s 2% target.
