| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | United Kingdom | Manufacturing Production (MoM) | July | 1.1% | 0.2% | -1.0% |
| 06:00 | United Kingdom | Industrial Production (MoM) | July | 0.8% | 0.3% | -0.8% |
| 06:00 | United Kingdom | GDP m/m | July | 0% | 0.2% | 0.0% |
| 06:00 | United Kingdom | GDP, y/y | July | 0.7% | 1.4% | 1.2% |
USD depreciated against most of its major counterparts in the European session on Wednesday as investors waited for the release of the U.S. consumer price index (CPI) data for August later in the day, which could prompt markets to revise their bets on near-term interest-rate decreases by the Federal Reserve.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, declined 0.19% from the previous close to 101.44.
The CPI is expected to show a deceleration to 2.6% YoY in August from 2.9% YoY in July, while the core CPI, which excludes volatile food and energy prices, is seen to hold steady at 3.2% YoY.
If inflation figures come in higher than expected, it would reinforce expectations of a 25-basis-point rate cut at next week's Fed policy meeting. On the contrary, cooler-than-anticipated prints should raise hopes for a bigger - 50-basis-point - rate reduction.
According to CME FedWatch, markets are now seeing a 69% probability of a 25-basis-point rate decrease at the U.S. central bank’s September 17-18 policy meeting and a 31% probability of a 50-basis-point move. Overall, markets are pricing in at least 100 basis points of rate cuts by the Fed over the remainder of this year.
In addition, markets continued to digest last night's presidential debate between the U.S. Vice President Kamala Harris and former President Donald Trump. Harris's debate performance was assessed as stronger than that of the Republican candidate.