The dollar index edged slightly down to around 103.8 on Monday, reacting to the soft housing data. January’s New Home Sales fell short of market expectations at 0.66M compared to the forecast of 0.68M. Current pricing suggests an expectation for the Federal Reserve to maintain rates in both the March and May meetings. The highest likelihood of a rate cut is observed in June, with a probability of approximately 53%. The Federal Reserve’s reluctance to implement premature rate cuts helped limit the downside. Meanwhile, investors awaited upcoming key reports, including Core and Personal Consumption Expenditures and GDP revisions, for a clearer picture of the economy.
