US dollar struggles for direction ahead of data despite rise in yields
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The US dollar is struggling for direction as investors await inflation data and US Treasury yields rise. Traders are cautious ahead of the release of inflation data on Wednesday, while US Treasury yields have increased as markets scale back their bets on future Federal Reserve rate cuts. The yen remains near multi-decade lows, prompting traders to be on alert for signs of intervention. Traders in Fed fund futures are betting on a total of 62 basis points of Federal Reserve rate cuts, the lowest rate-cut expectation since October last year. The dollar index fell by 0.01% to 104.05. US consumer price inflation for March will provide further clues about the Fed policy path. Geopolitical risk may increase demand for safe-haven assets, including the US dollar. The euro rose 0.1% to $1.0869, while sterling was at $1.2687, up 0.26% on the day.
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