Dollar holds near peaks as Fed readies a likely rate cut, with traders raising long-term rate expectations. Euro and yen stay weak ahead of global central bank decisions this week. Canadian dollar hits 4.5-year low amid political turmoil. #USD #Fed #Forex

The dollar stayed strong on Tuesday as traders priced in higher long-term rates, with the Fed expected to cut rates on Wednesday while signaling caution on further easing. The euro remains near $1.051 amid weak momentum, and the yen holds at 154.06 as chances of a BOJ rate hike shift to January.

Sterling saw a rebound after upbeat UK business data, while Canada’s dollar slid to its lowest since 2019 following the finance minister’s resignation. Meanwhile, Australian and New Zealand dollars hover near yearly lows, pinned by weak Chinese growth data. Global markets await key central bank decisions later this week.