| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 07:00 | United Kingdom | Average earnings ex bonuses, 3 m/y | November | 4.3% | 3.8% | 3.8% |
| 07:00 | United Kingdom | Average Earnings, 3m/y | November | 4.9% | 4.2% | 4.2% |
| 07:00 | United Kingdom | ILO Unemployment Rate | November | 4.2% | 4.2% | 4.1% |
| 07:00 | United Kingdom | Claimant count | December | -95.1 | | -43.3 |
| 07:30 | Switzerland | Producer & Import Prices, y/y | December | 5.8% | | 5.1% |
| 10:00 | Eurozone | ZEW Economic Sentiment | January | 26.8 | | 49.4 |
| 10:00 | Germany | ZEW Survey - Economic Sentiment | January | 29.9 | 32 | 51.7 |
USD strengthened against most of its major counterparts in the European session on Tuesday, while Treasury yields rose, as investors continued to prepare for imminent interest rate hikes in the U.S.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, went up 0.17% to 95.42.
The 10-year Treasury yield rose three basis points to 1.818% in the morning, while the 2-year yield rose seven basis points to 1.030%, reflecting investors’ concerns about persistent higher inflation and potential aggressive response from the Fed, which is currently expected to hike interest rates at least three times this year.
The Federal Reserve will meet on January 25-26, and investors expect this gathering will confirm a hawkish tilt within its policymakers, while the decision about the first rate hike is anticipated to come at the March meeting of the U.S. central bank.
According to the CME Group's FedWatch tool, investors are now seeing a 93.4% chance of a rate increase in March.