Dollar fell in European trade on Monday against a basket of major rivals, resuming losses and heading for three-week lows as US 10-year treasury yields taper off.
Investors await a batch of important US data this week, in addition to speeches by several Fed officials, which might include clues on the future of US interest rates.
The Index
The dollar index fell 0.15% to 103.80, with a session-high at 104.02, after closing up 0.1% on Friday, the first profit in eight days away from three-week lows at 103.43.
The index lost 0.3% last week, the first weekly loss in 1-⅕ months, and the largest this week as the odds of early rate cuts in the UK and Europe faded.
US Yields
US 10-year treasury yields fell 0.8%, plumbing two-week lows at 4.219% and pressuring the greenback.
The developments come as traders await a batch of important US yields and speeches by Fed officials this week.
US Rates
Markets now only expect a 2.5% chance of a Fed rate cut in March, and a 20% chance of such a cut in May, and a 64% chance of a cut in June.
Overall, traders expect 75 basis points of total rate cuts by the Federal Reserve in 2024, down from 150 basis points in previous forecasts.
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