| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 07:00 | Germany | Producer Price Index (YoY) | December | 19.2% | 19.4% | 24.2% |
| 07:00 | Germany | Producer Price Index (MoM) | December | 0.8% | 0.8% | 5% |
| 10:00 | Eurozone | Harmonized CPI ex EFAT, Y/Y | December | 2.6% | 2.6% | 2.6% |
| 10:00 | Eurozone | Harmonized CPI, Y/Y | December | 4.9% | 5% | 5% |
| 10:00 | Eurozone | Harmonized CPI | December | 0.4% | 0.4% | 0.4% |
USD traded mixed against other major currencies in the European session on Thursday amid a pullback in the U.S. Treasury yields, as investors continued to adjust to an environment of tighter monetary policy.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, edged up 0.11% to 95.61.
Meanwhile, the U.S. bond yields continued to retreat, as market participants bought the dip in Treasuries amid increased volatility in the equity market, rising geopolitical tensions, and worries about potential negative impacts of the Fed's tightening.
The 2-year Treasury yield dropped 2 basis points to 1.035% in the morning, while the 10-year Treasury yield decreased 3 basis points to 1.835%.
As a reminder, the Fed’s policymakers are scheduled to gather next week to discuss monetary policy against the background of high inflation. Markets expect this gathering will confirm a hawkish tilt within the Fed’s policymakers. Meanwhile, the decision about the first rate hike is anticipated to come at the March meeting of the U.S. central bank. Overall, expectations are for the Fed to increase rates at least three times this year.