Dollar Steady, Euro Soft as Traders Wager Rate Cuts to Begin in First Quarter

LONDON—The dollar held near a two-week high on Wednesday, while the euro was weak across the board as markets ramped up bets that the European Central Bank will cut interest rates as early as March.
The euro was down 0.1 percent against the dollar at $1.0783, after touching a three-week low of $1.0775, as markets adjust rate expectations lower following soft data and dovish central bank commentary.
The single currency was also at a three-month low against the pound, a five-week low versus the yen and a 6–1/2 week low against the Swiss franc.
“The story in currency markets is mostly about a softer euro,” said Niels Christensen, chief analyst at Nordea….