Dollar Selling Abates as Policy Decisions Loom
The greenback is bleeding less profusely this morning as traders cut risk ahead of next week’s Federal Reserve, Bank of England, and European Central Bank meetings. Equity futures are weaker, Treasury yields are down, and the Japanese yen is the only major currency posting gains relative to the dollar for the session. European recession risks eased somewhat in January as the S&P Global flash composite Purchasing Managers’ Index rose to 50.2, breaking back above the 50 threshold that separates expansion from contraction. A warmer-than-expected winter, improving supply chain conditions, and large amounts of fiscal stimulus have helped the bloc’s largest...