The dollar traded within a narrow range on Tuesday as investors adopted a cautious stance ahead of a high-stakes week featuring key central bank decisions and pivotal trade developments.
US Treasury yields eased slightly, with the 10-year remaining below 4%.
On the monetary front, the Federal Reserve is widely expected to deliver a 25-basis-point rate cut on Wednesday.
At the same time, both the European Central Bank and the Bank of Japan are projected to keep rates unchanged, which could weigh on the dollar. Market attention will center on the Fed’s forward guidance for December and early 2026, as traders assess the remaining policy space amid moderating inflation.
In parallel, US-China relations take the spotlight with Presidents Donald Trump and Xi Jinping expected to meet later this week to finalize a preliminary trade framework.