| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 09:00 | Eurozone | ZEW Economic Sentiment | September | 17.9 | 16.3 | 9.3 |
| 09:00 | Germany | ZEW Survey - Economic Sentiment | September | 19.2 | 17.1 | 3.6 |
USD weakened against most of its major counterparts in the European session on Tuesday as investors prepared for the start of the Federal Reserve’s two-day policy meeting later in the day, which is expected to deliver an outsized interest rate cut.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, slipped 0.09% from the previous close to 100.67.
The U.S. central bank is mostly expected to announce a 50-basis-point interest-rate decrease when it unveils the outcomes of its September meeting tomorrow at 18:00 GMT. This would be the first rate cut by the Fed since March 2020. According to CME FedWatch, markets now see a 65.0% probability of such a move by the Fed on Wednesday, compared to 62.0% yesterday and 34.0% one week ago.
Bets on an aggressive rate cut at this week’s Fed meeting increased following a weekend article by The Wall Street Journal's (WSJ) Greg Ip arguing for a bigger rate reduction and a Monday Bloomberg Opinion column from former New York Fed President Bill Dudley calling for a 50-basis-points decrease in interest rates.
Another point of investors’ interest is today’s release of the U.S. August data on retail sales and industrial production. Economists expect the data to show a 0.2% MoM dip in retail sales and a 0.2% MoM gain in industrial production.