The US dollar has staged a solid rebound recently as traders have scaled back bets on how much the Fed will slash borrowing costs in 2024. A couple of weeks ago, markets were largely convinced that the U.S. central bank would deliver more than 160 basis points of easing this year, but those expectations have since moderated sharply.
The odds that the FOMC will start its rate-cutting cycle in March have also diminished, boosting greenback’s bullish reversal along the way.
