Dollar Rises Ahead of Key Economic Data That Could Shape Fed Rate Cut Outlook
• U.S. dollar trades higher around 103.35 ahead of big economic data releases this week • Markets betting on smaller, 125 basis points of Fed interest rate cuts in 2023 rather than 175 bps previously • Inflation and GDP data out later this week may shape expectations for Fed policy • Technical analysis shows bullish momentum for dollar fading as it fails to break 200-day moving average • CME FedWatch tool shows 50% chance of March rate cut, down from higher odds previously