Expectations of the movement of the US dollar this week

The dollar index rose during today's trading on Wednesday, recovering from some of the losses suffered in the previous session, near its lowest levels in 11 weeks, as weak US economic data and low Treasury yields affected the currency, with investors waiting for important economic data this week to provide more clarity on the outlook.

Markets are focusing on the second estimate of GDP growth in the fourth quarter, due to be released on Thursday, and then the Personal Consumption Expenditures Price Index report due to be released on Friday, the Fed's preferred indicator for measuring inflation.

While we are waiting for the only news today is the sales of new homes.

Growing economic worries have prompted markets to price in two 25 basis point interest rate cuts by the Fed this year.

At the same time, escalating threats of tariffs by US President Donald Trump added to the market's anxiety, as Trump announced that tariffs on Canada and Mexico will go ahead as soon as the one-month delay expires next week