US Dollar Drops as Traders Bet on Peak Rates; Pound Rallies on UK Growth
-
The U.S. dollar dropped over the past week and is headed for its biggest monthly decline in a year as traders believe U.S. interest rates have peaked.
-
This week's economic calendar includes an OPEC+ meeting, U.S. inflation data, interest rate decisions from New Zealand and China, which could influence currency market direction.
-
The British pound hit a 2-month high against the U.S. dollar following better-than-expected economic data that showed a return to growth in November.
-
The Australian and New Zealand dollars also gained ground, with the Aussie dollar reaching a 3-month high ahead of a expected steady interest rate from the RBNZ this week.
-
China's yuan currency slipped after the central bank set the midpoint rate slightly weaker compared to the previous day, though it has strengthened over the past week.