Dollar hovers near 3-week high before Fed
The dollar hovered close to a three-week peak versus major peers on Monday, ahead of a week of central bank meetings in which markets expect the Federal Reserve to cut interest rates but signal a measured pace of easing for 2025
Bitcoin soared above $105,000 for the first time, buoyed by signs President-elect Donald Trump will go ahead with a potential strategic bitcoin reserve.
The euro was up 0.13% on the day at $1.0517, after dipping to $1.0453 at the end of last week, its weakest since Nov. 26, hampered by ratings agency Moody's (NYSE:MCO) unexpectedly downgrading France on Friday.
The decline in euro zone business activity eased this month, a survey showed on Monday.
The U.S. dollar index - which tracks the currency against six others - was steady at 106.83 as of 0900 GMT, after rising to 107.18 on Friday for the first time since Nov. 26.
Traders are confident of a quarter-point Fed rate reduction on Wednesday but now expect officials to forgo a cut in January, according to CME's FedWatch tool.
With inflation running above the central bank's 2% annual target, Fed policymakers have stated that recent upticks are part of the bumpy path to lower price pressures and not a reversal of the disinflationary trend.
But analysts say they are also likely to be wary of renewed inflation with Trump set to take office in January.
Source: Investing.com
