Debt ceiling talks boost USD and European markets, while NZD and JPY show contrasting strength.

European shares are expected to rally as optimism grows that a U.S. debt ceiling deal could be reached soon. President Joe Biden and top congressional Republican Kevin McCarthy have agreed to negotiate a deal directly, with Biden cutting short an Asia trip to return to talks on Sunday. The U.S. Treasury general account is draining fast as extraordinary measures are exhausted, pending a debt ceiling deal to raise the limit. The European data cupboard is largely bare today, meaning the next macro focal point will be a smattering of U.S. indicators. China's post-COVID recovery is already past its peak, as exports grew at the weakest pace in more than two years in April.