|09:00||Eurozone||Harmonized CPI ex EFAT, Y/Y||April||5.7%||5.6%||5.6%|
|09:00||Eurozone||Harmonized CPI, Y/Y||April||6.9%||7%||7%|
|09:50||United Kingdom||BOE Gov Bailey Speaks|| || || || |
USD advanced against other major currencies in the European session on Wednesday, underpinned by demand for safe havens amid lingering uncertainty over the prospects of a U.S. debt ceiling deal.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, climbed 0.36% to 102.93.
U.S. President Joe Biden met with congressional leaders yesterday for another round of debt ceiling discussions.
After the event, House Speaker Kevin McCarthy repeated that the two sides are still far apart on a deal to raise the debt ceiling. But he expressed hope that an agreement could be reached by the end of the week. Meanwhile, Biden said there is still work to do but noted that he saw an overwhelming consensus among the congressional leaders that defaulting on the debt is simply not an option.
In addition, hawkish remarks from the Federal Reserve’s officials caused a revision of rate-hike expectations. According to CME FedWatch Tool, markets are now pricing in a 21.4% probability of another 25-basis-point increase in the Fed Funds rate at the Fed’s June meeting compared to a 0.4% probability a week ago. By the end of the year, however, at least 50 basis points of rate cuts are still expected.