The dollar slipped against a basket of currencies following data indicating a slowdown in U.S. services industry growth and ahead of a week filled with significant events, including a European Central Bank rate decision, Congressional testimony from Federal Reserve Chair Jerome Powell, and U.S. jobs data. The Institute for Supply Management reported a modest easing in U.S. services industry growth in February, accompanied by a decline in employment. Meanwhile, bitcoin experienced a volatile session, hitting a record high before retreating sharply. The cryptocurrency is up nearly 50% this year, driven by increased investment in U.S. spot exchange-traded crypto products and expectations of global interest rate decreases.
Bitcoin reached a record high of $69,202 before retreating, currently trading at $62,745.23, down 7.04% on the day. The dollar index, measuring the currency against six major peers, was down 0.04% at 103.8. Major currency pairs largely traded within familiar ranges. Powell’s upcoming testimony is expected to reinforce the message of patience and no urgency for rate cuts. The European Central Bank is anticipated to maintain its interest rates at a record low, with investors keen on updated economic projections. U.S. employment figures for February, scheduled for release on Friday, carry the potential to impact markets. Analysts expect a slowdown in hiring, but a higher-than-expected number could contribute to the dollar’s upward trend this year.
In China, the National People’s Congress maintained its economic growth target of 5% and a budget deficit of 3%. The offshore yuan saw minimal changes, while the dollar slipped against the yen and sterling rose ahead of the British budget on Wednesday. Finance Minister Jeremy Hunt aims to temper speculation about significant pre-election tax cuts.