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Dollar gains before Fed, March rate cut seen less likely

Published by
Reuters UK

By Karen Brettell and Samuel Indyk NEW YORK (Reuters) – The dollar gained on Monday as investors prepared for the prospect that the Federal Reserve could push back against expectations of an imminent rate cut when it concludes its two-day meeting on Wednesday. Traders have cut odds that the U.S. central bank will reduce rates to 49%, from 73% a month ago, according to the CME Group’s FedWatch Tool, as data reinforces a view that the U.S. economy remains solid. That also contrasts to a weaker economic outlook for European countries, which is making the single currency relatively less attractive…

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