Dollar declined in European trade on Tuesday against a basket of major rivals, extending losses for another session and on track for three-week lows as US 10-year treasury yields dipped as well.
Now investors await a batch of important US data later today in addition to remarks by Fed officials, which could provide fresh clues on the likely path ahead for monetary policies.
The Index
The dollar index fell 0.2% to 103.61, with a session-high at 103.81, after closing down 0.2% on Monday, approaching three-week lows at 103.43.
US Yields
US 10-year treasury yields fell 0.6% on Tuesday, hovering near two-week lows and pressuring the greenback.
The developments come as traders await a batch of important US data later today, which could offer fresh pricing for the likelihood of interest rate cuts in March, May, and June.
US Rates
Markets are now expecting a 2.5% chance for a Federal Reserve March rate cut, and a 20% chance for a May rate cut, and a 64% chance for a June cut.
Investors now expect 75 basis points of total US rate cuts this year, down from 150 basis points in previous forecasts.
Data
Now investors are waiting for a basket of important US data later this week, including GDP growth, unemployment claims and personal spending data, to gauge the likely path ahead for policies.
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