Australia's consumer price inflation eased in December to the lowest since early 2021 on falling electricity and auto fuel prices, the Australian Bureau of Statistics reported Wednesday. Consumer prices logged an annual increase of 2.4 percent in the December quarter, following a 2.8 percent rise in the preceding period. This was the lowest rate since March 2021.

The U.S. dollar firmed against its major counterparts on Tuesday after President Donald Trump announced plans to impose tariffs on imported computer chips, pharmaceuticals, and steel, to encourage domestic production of these goods.

The Conference Board released a report on Tuesday showing its U.S. consumer confidence index decreased from a notably upwardly revised level in January. The report said the consumer confidence index slid to 104.1 in January from an upwardly revised 109.5 in December. Economists had expected the consumer confidence index to climb to 106.3 from the 104.7 originally reported for the previous month.

A report released by the Commerce Department on Tuesday unexpectedly showed a steep drop by new orders for U.S. manufactured durable goods in the month of December amid a nosedive by orders for transportation equipment. The Commerce Department said durable goods orders plunged by 2.2 percent in December after tumbling by a revised 2.0 percent in November. Economists had expected durable goods orders to climb by 0.8 percent.

The British pound strengthened against most major currencies in the European session on Tuesday, after the U.K. Prime Minister Starmer affirms that trade relations with the U.S. are positive.

France's consumer confidence showed some recovery signs at the start of the year. The consumer sentiment index rose to a 3-month high of 92 in January from 89 in the previous month. However, the index remained well below its long-term average of 100. The index measuring consumers' outlook regarding their financial situation rose to -10.0 in January from -14.0 a month ago.

The U.S. dollar strengthened against other major currencies in the Asian session on Tuesday, as U.S. President Donald Trump warned of higher universal tariffs and said he'll soon impose tariffs on foreign-produced semiconductors, pharmaceuticals and some metals in a push to increase U.S. production of the products.

Australia's business conditions rebounded in December with retail entering positive territory for the first time since November 2023, a survey from the National Australia Bank showed on Tuesday. The business conditions index rose three points to +6 and almost returned to the long-run average. The survey showed a notable uplift in retail conditions.

Consumer sentiment from France and unemployment from Spain are the top economic news due on Tuesday. At 2.45 am ET, France's statistical office INSEE publishes consumer sentiment survey results. The index is forecast to rise to 90 in January from 89 in December.

The Reserve Bank of India on Monday announced several measures that are set to inject over INR 1 trillion liquidity into the banking system, a move many observers interpreted as paving the way for policy easing next week. The central bank said it will purchase government securities worth INR 600 billion through open market operations purchase auctions.

New home sales in the U.S. surged by much more than expected in the month of December, according to a report released by the Commerce Department on Monday.

The U.S. Dollar tumbled against major currencies during the week ended January 24 amidst a perceived softening in the U.S. administration's tone on trade tariffs and President Trump's call to global central banks to lower interest rates. Weak economic data updates from the U.S. also aided the Dollar's decline.

German business confidence improved slightly in January on more positive assessment about the current situation but the overall low level continues to signal that the economy remains on weak footing. The ifo business climate index rose more-than-expected to 85.1 in January from 84.7 in the previous month, survey results from the ifo Institute showed on Monday. The reading was seen at 84.9.

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Business sentiment survey data from Germany is due on Monday, headlining a light day for the European economic news. At 2.00 am ET, Statistics Norway publishes unemployment data for December. In the meantime, foreign trade figures from Sweden and capacity utilization from Turkey are due.