WASHINGTON - Market expectations for a potential Federal Reserve rate cut in March have risen following an unexpected decline in U.S. producer prices, causing a decrease in Treasury yields. The shift in expectations comes as investors closely monitor economic indicators for signs of changes in monetary policy.
The impact of the latest economic data was evident in currency markets, with the euro trading in a narrow range around $1.0946 to $1.0957. Meanwhile, the British pound maintained its strength, hovering near a two-week high at $1.2732. Despite the movements in these currencies, the dollar index, which tracks the greenback against a basket of six major currencies, remained relatively stable, registering values between 102.40 and 102.50.
Investors around the globe are also keeping a watchful eye on upcoming UK inflation data. The release of this data is highly anticipated as it is expected to play a significant role in shaping central bank rate decisions, not just in the UK, but potentially across global financial markets.
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