Business
Dollar Weakens Amid Rising Expectations of Monetary Easing
The dollar weakens as soft U.S. retail data fuels expectations for interest rate cuts by the Fed.
While a second consecutive hold in March remains the highest probability, odds of a cut in March rise to 20% from 17% yesterday on the CME FedWatch. December retail sales were flat, undershooting forecast of a 0.4% increase.
Treasury yields fall, adding downward pressure on the currency. The WSJ Dollar Index falls 0.2%, as the greenback weakens 1% against the yen. The dollar is flat versus the euro and the Swiss franc.