Dollar Steady, Euro Soft as Traders Wager Rate Cuts to Begin in First Quarter

Dollar Steady, Euro Soft as Traders Wager Rate Cuts to Begin in First Quarter
U.S. Dollar and Euro banknotes are seen in this illustration taken on July 17, 2022. Dado Ruvic/Illustration/Reuters
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LONDON—The dollar held near a two-week high on Wednesday, while the euro was weak across the board as markets ramped up bets that the European Central Bank will cut interest rates as early as March.

The euro was down 0.1 percent against the dollar at $1.0783, after touching a three-week low of $1.0775, as markets adjust rate expectations lower following soft data and dovish central bank commentary.