Dollar Eases as Stocks Rise, Yields Slip Ahead of FOMC

Overview

• The dollar index fell 0.14% on Tuesday after Treasury yields declined and equities advanced.
• Weak ADP weekly hiring data showing a 9,000 increase over four weeks weighed on yields, while a 1.8% jump in February pending home sales limited dollar losses.
• Traders assign roughly a 3% probability to a quarter‑point cut at this week’s meeting, with core PCE at 3.1% reinforcing expectations of an extended pause.
• The euro rose about 0.3% but gains were capped by an 11‑month‑low German ZEW reading and a roughly 2% rebound in crude prices that challenges Eurozone growth.
• The yen inched higher as Japan reiterated readiness to act on FX moves and domestic services activity jumped, while gold finished little changed and silver fell as oil strength tempered precious‑metal bids.